Small Business Administration is Right to Leave Sanctuary Cities

Originally published by the Washington Examiner

In a decisive step to prioritize safety and compliance with federal law, the U.S. Small Business Administration announced on June 7 the relocation of its Los Angeles regional office due to the city’s refusal to cooperate with Immigration and Customs Enforcement. Coupled with the House passage of H.R. 2931, the Save SBA from Sanctuary Cities Act, on June 5, 2025, this decision marks a commendable effort to protect American small businesses and restore the rule of law amid escalating nationwide illegal immigrant riots.

Last month, thousands of rioters surrounded the Roybal Federal Building, assaulting ICE officers, looting stores, and defacing public property with slogans threatening ICE personnel. City officials reported that over 20 businesses were looted in downtown Los Angeles alone, causing millions of dollars in property damage. According to a report by the city budget chief, the riots will cost Los Angeles taxpayers $32 million.

California Gov. Gavin Newsom and Los Angeles city officials, including Mayor Karen Bass, have yet to fully condemn this disorder. This is not surprising, as they have actively undermined federal immigration enforcement efforts through their steadfast support of sanctuary policies, which shield illegal aliens and undermine public safety.

Citing the city’s refusal to cooperate with ICE and failure to ensure public safety, the SBA has decided to leave Los Angeles. SBA Administrator Kelly Loeffler declared: “If a city won’t protect its people, we won’t stay.”

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