California Governor Gavin Newsom Signs Bill Imposing 25% Tax on Private Detention Centers

<p>California Governor Gavin Newsom signed a bill earlier this week that imposes a 25% tax on private detention centers, applicable to all facilities partnering with Immigration and Customs Enforcement (ICE) in California.</p><p>Newsom stated, "If we can’t kick out private facilities, we’ll go after their profits," in a press release regarding the new legislation.</p><p>The bill, known as AB 1633, aims to counter President Donald Trump’s immigration policies and the privatization of federal enforcement. Immigration experts have expressed concerns that the tax could lead the government to seek alternative facilities that may not be suitable for housing detainees. There are questions about the potential consequences if all eight of ICE's detention facilities in California were to cease operations.</p><p>Hans von Spakovsky, a senior legal fellow and immigration expert at Advancing American Freedom, commented, "It's very clear that there's only one purpose to this California gigantic tax increase, and that is to make sure that the federal government cannot find any private property owners, any private contractors in California that are willing to lease space to the federal government." He suggested that the federal government might need to consider repurposing federal properties for detention use.</p><p>The law applies to the gross income of any private detention facility and affects federal, state, and local contract recipients. Revenue generated from the tax will be allocated to a "Due Process for All Fund" for immigration-related services. The law is set to take effect on July 1, 2028.</p><p>In addition to the tax, Newsom signed several other bills aimed at restricting practices related to immigration enforcement, including a ban on the use of shock gloves. He stated, "We may not be able to dictate federal immigration policy, but we can make clear that activities taking place in California will be subject to California law."</p><p>Spakovsky noted that the new law could impact federal immigration law enforcement by limiting available space for operations. He referenced ICE's report indicating that the agency currently has enough detention space for approximately 66,000 individuals. If private detention contractors in California opt not to operate due to the tax, ICE's capacity could be reduced.</p><p>California hosts eight ICE detention facilities, all of which are privately operated. The GEO Group owns five facilities, while Imperial Valley Gateway Center LLC operates one. Two additional facilities were acquired by the Department of Homeland Security (DHS) in July and are managed by CoreCivic, with contracts extending through 2027 and 2029.</p><p>Although the bill will not take effect until 2028, Spakovsky suggested that the federal government may begin seeking alternative partnerships for detention needs sooner. He stated, "If I was the federal government and I couldn't find enough federal properties in California to do this, I would then go into neighboring friendlier states that I could quickly transport aliens I've detained and I would lease and rent facilities there," mentioning states like Arizona and Nevada as potential options.</p><p>The office of Governor Gavin Newsom did not immediately respond to a request for comment.</p>