AB 1633 imposes a 25% tax on the gross income of private detention facilities in California, a move Newsom cast as resistance to Trump’s immigration crackdown and privatized enforcement.
The law covers federal, state and local contract recipients, sends proceeds to a Due Process for All Fund for immigration-related services, and is scheduled to take effect on July 1, 2028.
All 8 ICE detention facilities in California are privately operated, raising the prospect that operators could scale back or suspend activity rather than absorb the tax.
Hans von Spakovsky said ICE, which he put at about 66,000 detention beds nationwide, may start looking to federal properties or facilities in Arizona, Nevada and other states if California capacity tightens.