Minnesota Democratic Governor Tim Waltz The proposal came under fire from Republicans online after proposing a $10 million emergency relief package for small businesses across the state affected by the Trump administration’s immigration crackdown.

Walz unveiled the proposal Thursday following an announcement by border czar Tom Homan Minnesota metro surge operations will end. The proposal calls for forgivable loans of $2,500 to $25,000 to qualifying businesses that can demonstrate a “significant revenue loss” during “certain dates” related to their operations.

“The federal government’s retaliatory action is more than just short-term devastation; it is causing long-term damage to Minnesota’s communities,” Walz said in a statement. “Recovery will not happen overnight. Families, workers and business owners are feeling the impact, and our responsibility is clear: We will help rebuild, stabilize these businesses, protect jobs, and ensure Minnesota’s economy can recover and thrive.”

Republicans were quick to criticize the proposal as Minnesota continues to face widespread accusations of fraud.

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Minnesota Gov. Tim Walz has proposed a $10 million emergency relief package for small businesses affected by the Trump administration’s immigration crackdown. (Jerry Holt/Minnesota Star Tribune via Getty Images)

president Donald Trump Previous claims of fraud in Minnesota exceed $19 billion.

Dozens of people have been indicted in Minnesota in recent years in connection with a massive welfare fraud scheme involving food assistance and autism services. Federal prosecutors allege the schemes stole hundreds of millions of dollars from taxpayer-funded programs, and separate investigations have examined alleged fraud in the state’s day care system.

House Majority Whip Tom Emmer, Republican of Minnesota. Responding to Gov.

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Democratic Minnesota Governor Tim Walz speaks to reporters after announcing he will not seek re-election at the Minnesota State Capitol on January 5, 2026. (Reuters/Tim Evans)

Sen. Michael Holmstrom, R-Minnesota, said on

Others have mentioned fraud related to Minnesota Day Care Systemincluding Rep. Eli Crane, R-Ariz., who responded to X’s proposal: “Does this include learning centers?”

His post mentioned a misspelling for “Quality Learning Center,” which was eventually corrected. YouTuber Nick Shirley infamously profiled Quality Learning Centers in a video in which he visited multiple day care centers in Minnesota that allegedly received public funds but provided no services.

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Gov. Tim Walz unveiled an emergency loan program related to the economic impact of federal immigration enforcement under President Donald Trump. (Al Drago/Bloomberg, Getty Images and Tibrina Hobson/Getty Images)

The governor’s office released a statement from Henry Garnica, owner of CentroMex in East St. Paul, who said the past few months of immigration operations have been “the most difficult time I have ever experienced as a business owner.”

“Sales are down, our hours are limited and we have to change the way we operate,” he said. That’s not who we are as a neighborhood store. this proposal Forgivable loan options will give businesses like mine breathing room – keeping employees on payroll and keeping our doors open. For some of us, this could mean the difference between surviving and shutting down forever. “

On Thursday, Walz asked the federal government to “pay for what they destroyedThe Trump administration has said it will reduce its presence in the Twin Cities.

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Walz said at a press conference Federal law enforcement presence The nation is being left with “deep hurt” and “intergenerational trauma.”

Fox News Digital’s Michael Dorgan contributed to this report.