California enacts 25% levy on private immigration detention operators

Governor Gavin Newsom approved AB 1633, a pioneering law that levies a 25% tax on the earnings of private companies operating immigration detention facilities within California. Assemblymember Matt Haney explained that the tax revenue will be channeled into the newly created Due Process for All Fund, which will support services for immigrant families and communities impacted by detention. The legislation is framed as a response to the financial gains private firms have made from ICE contracts, aiming to hold them accountable for social costs.

California now leads the nation in taxing profit from mass detention and family separation. The bill mentions two primary contractors, GEO Group and CoreCivic, both of which have acknowledged the law and are assessing its financial implications. The state hopes the fund will mitigate the harms attributed to private detention practices.