California Imposes 25% Tax on Private Detention Centers

California Imposes 25% Tax on Private Detention Centers

Fox News

Summary

California Gov. Gavin Newsom signed a bill imposing a 25% tax on private detention centers that partner with ICE. The law, AB 1633, aims to counter federal immigration policies and is set to take effect in 2028. Newsom called it a way to push back against Trump-era tactics. Immigration experts warn the tax could force ICE to use less suitable facilities. Hans von Spakovsky, an immigration expert, said the tax is meant to limit federal detention options. The bill also bans the use of electric shock gloves in enforcement. Revenue will fund a “Due Process for All Fund.”


Our Reading

As expected, the matter has reached another stage.

Newsom signs a bill, calls it a pushback.

Experts warn of unintended consequences.

Spakovsky says it’s a way to limit federal options.

Private facilities face a tax, but federal alternatives remain.


Author: Evan Null

California’s New Tax on Private Detention Centers

California Gov. Gavin Newsom signed a bill that imposes a 25% tax on private detention centers partnering with ICE. The law is part of a broader effort to challenge federal immigration policies. Newsom described the move as a way to protect immigrant communities. The bill will go into effect on July 1, 2028. It is among 20 bills signed by Newsom on Tuesday.

Concerns from Immigration Experts

Immigration experts warn that the tax could force the federal government to look for alternative detention facilities. They argue that these alternatives may not be as suitable for housing detainees. The law applies to all private detention facilities in California, including those operated by the GEO Group and CoreCivic. Revenue from the tax will fund a “Due Process for All Fund.”

Spakovsky’s Perspective

Hans von Spakovsky, an immigration expert, said the tax is intended to limit federal options for detention. He believes the federal government may have to use its own properties instead of private contractors. Spakovsky also pointed out that ICE currently has enough detention space for about 66,000 individuals. If private facilities stop operating, this capacity could shrink.

ICE’s Detention Facilities in California

California is home to eight ICE detention facilities, all privately operated. The GEO Group owns five of them, while Imperial Valley Gateway Center LLC owns one. Two more were purchased by DHS in July and are operated by CoreCivic. These facilities have contracts through 2027 and 2029. The new tax could affect their operations.

Potential Federal Responses

Spakovsky suggested that the federal government might look to other states for detention facilities if private contractors in California refuse to operate. He mentioned Arizona and Nevada as possible options. These states may be eager for federal funding and employment opportunities. The move could lead to a shift in how ICE manages detention across the country.