California Gov. Newsom Imposes 25% Tax on Private ICE Detention Centers

California Governor Gavin Newsom signed AB 1633, a bill that will levy a 25% tax on the gross income of all private detention facilities that house immigrants for Immigration and Customs Enforcement (ICE). The tax, effective July 1 2028, applies to federal, state and local contracts and will fund a “Due Process for All Fund” dedicated to immigration‑related services. California hosts eight ICE facilities, all privately operated—five by the GEO Group, one by Imperial Valley Gateway Center LLC and two by CoreCivic under DHS contracts. Immigration experts warn the tax could prompt private operators to suspend operations, potentially shrinking ICE’s detention capacity in the state and forcing the federal government to seek alternative sites or repurpose federal property. Newsom also banned the use of shock gloves in enforcement and added other restrictions on ICE activities in California.