President Trump's threat to use the Insurrection Act to deploy federal troops to Minneapolis ratcheted up the pressure amid rising turmoil over ICE's sustained presence in the Twin Cities.

Why it matters: While officials are calling for a de-escalation, there's still no clear path to a resolution over the increasingly tense situation.

Driving the news: Trump vowed yesterday to invoke the rarely used powers to "put an end" to local protests, unless "corrupt politicians ... obey the law" and stop "professional agitators" from "attacking the patriots of I.C.E."

• The post on Truth Social came hours after an ICE agent shot a Venezuelan man in the leg during an arrest, sparking another round of protests.
• The Department of Homeland Security said the agent was "ambushed," but much of the federal government's narrative of the incident hasn't been independently corroborated.

Between the lines: Every modern use of the Insurrection Act has come either at a governor's request or to expand civil rights protections over state objections.

• Trump would flip that script, sending troops against a governor's wishes to crush protests of the federal government's own actions.

The response: Gov. Tim Walz, who last week described the federal government as "at war" with the state, urged Trump to "turn the temperature down" and "stop this campaign of retribution," while at the same time reiterating his call for Minnesotans to protest peacefully.

• His office said the governor is "attempting to get ahold of the president," and is "convening business leaders, members of Congress, other governors and civic leaders to make an appeal to the administration to reverse course."

Friction point: ICE replied on X, saying it's on Walz to "tone down the hostile, inflammatory anti-ICE rhetoric" and honor ICE's requests to hold non-citizens who are arrested until they can be taken into custody and deported.

Yes, but: While the Hennepin County Sheriff's Office and some other jurisdictions have policies against working with ICE in local jails, the state Department of Corrections says it "honors all federal and local detainers," even though it's not required to under state law.

• State corrections leaders accused DHS of conflating "local jail custody, ICE custody, and state prison custody," calling claims that Minnesota has released hundreds of undocumented criminals "categorically false, unsupported by facts, and deeply irresponsible."

Reality check: News reports and lawsuits have also documented instances of agents going beyond the administration's stated goal of removing dangerous criminals, as allegations of racial profiling, excessive force, and lawful residents getting swept up in the crackdown mount.

• A Fox 9 analysis found that about 5% of the first 2,000 people arrested had violent convictions.

Go deeper: How Trump could use the Insurrection Act against Minnesota

Manny González's torta stand in the Midtown Global Market survived the burning and looting of Lake Street in 2020, but might not make it through the flood of ICE agents in the immigrant-heavy neighborhood.

• "This is worse," González said.

Why it matters: ICE's unprecedented surge into diverse Twin Cities neighborhoods has battered small businesses that had been inching back toward normal after 2020.

• The Lake Street Council told the Minneapolis/St. Paul Business Journal that on a given day, up to 60% of the area's businesses are closed. Several were dark at the Global Market.
• It goes beyond Lake Street, as the Star Tribune reported similar distress on other corridors, including St. Paul's Payne Avenue.

State of play: Business is down 40% at González's popular Manny's Tortas. He thinks he can only survive another month like this.

The latest: As he talked to Axios from his kitchen on Wednesday, the sound of whistles could be heard as ICE agents walked by outside.

• "They just abducted another person," a market staffer said, noting that agents have been a constant presence outside the complex filled with Latino and East African businesses.

Between the lines: Proprietors say their employees are afraid to show up for work, which would be a bigger problem if not for the fact that their customers are also staying home.

Case in point: Nuur Ugas measures the downturn in goats and lambs. He usually orders 15 or 16 a week to sell at his Oasis market and halal butcher shop.

• Since the agents showed up in Minneapolis, it's down to three or four a week.

"If this continues, in two months I am going to be out of business," Ugas said.

Keep reading

🪧 A conservative influencer has announced plans for a "March Against Minnesota Fraud" in downtown Minneapolis this weekend. (Star Tribune)

• Some business owners and community leaders are concerned it will lead to harassment against Somali Americans.

Three children, including an infant, were hospitalized after their father said agents threw tear gas and a flash bang near his vehicle as he was trying to leave a relative's home near Wednesday's ICE shooting. (FOX 9)

🏗️ Walz released a proposed capital investment package that includes $41 million for State Capitol security upgrades. (KARE 11)

🍜 Progresso, the soup brand owned by General Mills, is reviving its viral "soup drops." (Axios)

After a few bumps in the first month of the season, the Timberwolves look like a team capable of heading back to the Western Conference Finals for a third consecutive year.

Driving the news: The team tips off the second half of its season tonight, boasting a 27-14 record and having won six of its last seven games.

How we got here: Anthony Edwards has been magnificent in clutch time, Julius Randle is playing bully ball, and Jaden McDaniels has taken a big step forward on offense.

What we're watching: The hot streak has catapulted the Wolves into position for a top-4 seed.

👋 Audrey here. If you're still attempting Dry January, I visited six bars and restaurants last week in search of the best booze-free beverages. Here are my three top picks:

🍋 Estelle: The St. Paul spot's Lady Brett Ashley ($10) with lemon, basil and a delicious citrus foam was a standout.

🥒 Khâluna: The southeast Asian restaurant's resort-like atmosphere paired well with the $14 Last Love, which uses a zero-proof agave "spirit" alongside cucumber and lime.

🍇 Bar + Cart: The cozy Grand Avenue haunt had the most expansive list of nonalcoholic options, with nine mocktails ($10/each) ranging from smoky to sweet.

• My favorite was the Devil in the Garden, which paired acid-adjusted grape juice with lavender and lemon.

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