Nationwide 'ICE Out' Protests Spark Business Closures; Government Enters Partial Shutdown

Lead: A nationwide "ICE Out" protest movement triggered business shutdowns and police clashes in Los Angeles on Friday as the U.S. government entered a partial shutdown. The demonstrations followed reports of increased federal immigration operations and the use of facial recognition technology on U.S. citizens.

What we know

• Protesters and police clashed in downtown Los Angeles Friday night following an "ICE Out" demonstration, resulting in multiple arrests after police issued a dispersal order SOURCE.
• The U.S. government entered a partial shutdown after Congress failed to pass a spending bill, marking the second closure within a six-month period SOURCE.
• Small businesses in Colorado, Nevada, Texas, Rhode Island, and Arizona closed or donated proceeds on January 30 to participate in an economic blackout protesting federal immigration enforcement SOURCE SOURCE SOURCE.
• ICE agents reportedly used facial recognition technology to record at least seven American citizens in the Minneapolis area this month SOURCE.
• The Department of Homeland Security has paid Bloomington-based Acadis nearly $100 million for training-track technology since 2004, including $26 million from ICE SOURCE.
• SpaceX updated its Starlink privacy policy on January 30 to allow customer data to be used for training artificial intelligence models SOURCE.
• The U.S. Coast Guard recovered one body and is searching for six missing people after the fishing vessel Lily Jean issued an emergency alert off the Massachusetts coast Friday morning SOURCE.

What we don’t know yet

• The total number of arrests from the Los Angeles clashes as police departments continue processing detainees.
• The anticipated duration of the partial government shutdown, which remains contingent on a Congressional resolution regarding DHS funding.
• The identities and conditions of the six missing crew members from the Lily Jean.
• The full economic impact and total number of participants in the "ICE Out" business boycott.

Why it matters

• Federal agency operations, including immigration processing and national park services, face pauses or scaling back during the funding lapse.
• Evidence of federal agencies using biometric surveillance on U.S. citizens has intensified legal debates over privacy and civil liberties.
• Coordinated economic boycotts by small businesses signal a shift in how local communities respond to federal immigration policy.
• Changes to satellite internet privacy policies indicate a heightening demand for consumer data to fuel AI development.

What’s next

• The U.S. Coast Guard search operations off the coast of Massachusetts will continue throughout the weekend.
• Congressional leaders are expected to convene to negotiate a new spending deal to restore DHS funding.
• Privacy advocacy groups are expected to file legal challenges regarding the use of facial recognition by ICE in Minnesota.
• A leadership vote for the Conservative party in Canada is scheduled following a speech by Pierre Poilievre regarding economic volatility.
• Supply chain analysts expect potential price increases for PC components in 2026 due to sustained AI-related hardware demand.