California bill would impose new tax on corporations operating ICE-funded detention facilities

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California bill would impose new tax on corporations operating ICE-funded detention facilities
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A new proposal in the California legislature aims to make the state the first in the nation to hold for-profit corporations financially accountable for operating Immigration and Customs Enforcement-funded private immigration detention centers.

Tuesday, January 27, 2026 9:17PMA new proposal in the California legislature aims to make the state the first in the nation to hold for-profit corporations financially accountable for operating Immigration and Customs Enforcement-funded private immigration detention centers.

AB 1633, which was introduced by Assemblymember Matt Haney , would impose a 50% tax on corporate profits generated through detention operations. According to the proposal, money collected through the tax would be directed into a new fund dedicated to immigration-related services. "For years, ICE has fueled a system that profits from human suffering and family separation, outsourcing detention to private corporations who rake in profits while people endure dangerous, inhumane conditions," said. "What we're seeing in Minnesota and across the country shows the real world consequences of ICE's unchecked power, putting communities and lives at risk for profit with zero accountability. Corporations running these facilities are being paid hundreds of millions to detain people in cruelty right here in California, and it has to end." California currently has seven ICEfunded private immigration detention facilities operated by forprofit companies.

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