The woman was identified as Renee Nicole Good, according to the Department of Homeland Security, which said an ICE agent opened fire after Good attempted to strike officers with her vehicle during the operation.
Federal authorities said the agent acted in self-defense, while Minneapolis city officials rejected that account and called for an independent investigation into what they described as a reckless use of force.
According to the Department of Homeland Security, Good drove her SUV toward ICE officers, leading one agent to fire multiple shots in what officials described as an effort to protect himself and others at the scene.
"An officer of ours acted quickly and defensively, shot to protect himself and the people around him," Homeland Security Secretary Kristi Noem said in a statement.
She labeled the incident "an act of domestic terrorism" and said the woman was struck and later died.
Separately, Homeland Security spokesperson Tricia McLaughlin said on the social media platform X that ICE officers were carrying out targeted operations when "rioters" blocked them.
She said "one of these violent rioters weaponized her vehicle," adding that an ICE officer "used his training and saved his own life and that of his fellow officers."
McLaughlin said officers injured during the incident were expected to make full recoveries.
In contrast, Minneapolis Mayor Jacob Frey said he had reviewed video footage of the shooting and rejected federal claims that the use of force was justified.
He described the incident as a reckless killing and demanded that federal immigration agents leave the city.
"We're demanding ICE to leave the city immediately. We stand rock solid with our immigrant and refugee communities," Frey wrote on X.
In a joint statement, the Minneapolis City Council said Good was a city resident whose “life was taken today at the hands of the federal government.”
“Anyone who kills someone in our city deserves to be arrested, investigated, and prosecuted to the fullest extent of the law,” the council said.
The council demanded that ICE “immediately leave our city so we can get rid of their chaos and violence that ended the life of one of our neighbors today.”
Meanwhile, Minnesota Governor Tim Walz echoed the mayor’s criticism, dismissing the federal account as misleading.
He described the Department of Homeland Security’s statements as "propaganda" and said state authorities would pursue accountability.
"The state will ensure there is a full, fair, and expeditious investigation to ensure accountability and justice," Walz wrote on X.
Minneapolis Police Chief Brian O’Hara said Good was not the target of any enforcement action and had been blocking a street at the time of the incident.
He told reporters that at least two shots were fired after an officer approached Good on foot and her vehicle began to move away.
O’Hara said the scene was secured by the Minneapolis Police Department, with the investigation being conducted jointly by the FBI and the Minnesota Bureau of Criminal Apprehension.
In a related development, federal authorities said the Trump administration has deployed nearly 2,000 federal agents to Minnesota as part of an intensified crackdown on undocumented immigration.
The deployment followed allegations of fraudulent practices at some childcare centers after an unverified video circulated on social media.
Minnesota officials have rejected those allegations, saying the facilities in question were inspected and found to be operating in compliance with state regulations.