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

<p>California Governor Gavin Newsom signed a bill on October 3, 2026, that will impose a 25% tax on private detention centers 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. The legislation aims to counter what Newsom describes as President Donald Trump’s immigration policies and the privatization of federal enforcement. Some 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 implications if all eight of ICE's detention facilities in California were to cease operations.</p><p>Hans von Spakovsky, a senior legal fellow at the conservative think tank 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 purposes.</p><p>The law, known as AB 1633, applies to the gross income of any private detention facility and includes federal, state, and local contract recipients. The revenue generated from this tax will be allocated to a