Immigration crackdown fuels labor shortages and rising costs for U.S. businesses

August saw a record 51,000 immigration arrests, according to DHS data, as the Trump administration expands ICE operations. Business owners across sectors are feeling the impact: Baltimore chef Carlos Raza cites the departure of Honduran workers after their TPS status was revoked, and a Texas restaurant survey shows 36% of eateries have lost staff and 26% see fewer customers. National coalitions representing food-service and immigrant entrepreneurs report that migrants comprise about 20% of the workforce and over a third of owners, with many businesses forced to cut hours or close locations.

The termination of TPS for Haiti and other countries has also removed thousands of health-care and caregiving workers, worsening shortages. Additional visa restrictions, including a $103,000 fee for H-1B visas, further limit small firms’ ability to hire skilled labor, contributing to rising prices for items such as lettuce and services like home health care.