Newsom signs 25% tax on private ICE detention centers in California

Key Points:

• California Governor Gavin Newsom signed a bill imposing a 25% tax on private detention centers partnering with ICE, aiming to reduce profits from immigration enforcement facilities in the state; the tax will take effect on July 1, 2028.
• The tax applies to the gross income of private detention facilities under federal, state, and local contracts, with revenue directed to a "Due Process for All Fund" for immigration-related services.
• Critics, including immigration expert Hans von Spakovsky, argue the tax could force ICE to seek alternative detention options, such as federal properties or facilities in other states, potentially reducing California's detention capacity.
• California currently hosts eight privately operated ICE detention facilities, primarily owned by The GEO Group, Imperial Valley Gateway Center LLC, and CoreCivic, all of which could be impacted by the new tax.
• Alongside the tax bill, Newsom also banned the use of shock gloves in enforcement activities and strengthened court access protections, signaling California's effort to assert state law over federal immigration enforcement within its borders.