In an unprecedented surge, Trump has deployed thousands of armed immigration enforcement agents in and around Minneapolis this year to detain and deport migrants, resulting in angry and sometimes violent confrontations with residents and street protests across the United States.
Homan said the deportation campaign was in the interest of public safety.
He was partially reducing the deployment because he was seeing "unprecedented" co-operation from Minnesota's elected sheriffs who run county jails, although he did not give more details.
"Let me be clear, President Trump fully intends to achieve mass deportations during this administration, and immigration enforcement actions will continue every day throughout this country," Homan said at a press conference.
"President Trump made a promise. And we have not directed otherwise."
Homan also said there had been "a gap" in giving agents body-worn cameras, which he was hoping to fix with Congress.
The deportation sweeps, dubbed Operation Metro Surge, have been opposed and denounced since early January by Minnesota governor Tim Walz, Minneapolis mayor Jacob Frey and other elected Democrats.
They have sued the administration in federal court, demanding the restraining or withdrawal of a federal deployment that was about 20 times the normal number of immigration enforcement agents in the state, outnumbering local police forces.
Both Walz and Frey, in separate statements, called Homan's announcement encouraging but insufficient.
"The drawdown and body-worn cameras are a step in the right direction but 2000 ICE officers still here is not de-escalation," Frey said.
"My message to the White House has been consistent - Operation Metro Surge has been catastrophic for our businesses and residents. It needs to end immediately."
Grappling with one of the thorniest political crises of his tenure, Trump sent Homan to Minnesota in late January with a mission to talk with Walz and Frey and temper the outrage in Minneapolis' streets, which intensified after immigration agents fatally shot US citizens Renee Good and Alex Pretti.
The administration's aggressive deportation efforts, part of a country-wide campaign, have triggered protests, drawn criticism even from some of his fellow Republicans and stern rebukes from some federal judges asked to rule on the legality of migrants' detentions, who say their orders are being defied.
Homan said on Wednesday his goal was to return to the usual force of about 150 federal immigration agents in Minnesota but did not say when that would be possible.
He said his meetings with Walz and Frey had been productive: "While we had our differences, one thing was clear - we are all committed to public safety," he said.
Trump has said that many migrants must be deported, blaming them, often in sweeping terms, for financial fraud and violent crimes.
Homan wants more jails in Minnesota to allow in immigration agents to question or take custody of detained migrants.
Some already do, although only seven sheriffs out of Minnesota's 87 counties have signed formal co-operation agreements with ICE.
Others, including the main jail in Minneapolis run by the Hennepin County sheriff, do not cooperate.
Minneapolis and some other cities prohibit their employees, including police, from asking about citizenship or co-operating with federal immigration enforcement, saying it threatens public safety if migrants who are victims of or witnesses to crime fear coming forward.
Asked if he thought Operation Metro Surge had been a success, Homan replied that he thought it had improved public safety.
"Was it a perfect operation? No," Homan said.
