California bill would tax companies contracting with ICE

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Last Updated on January 29, 2026 by The HD Post Staff

CALIFORNIA – Assemblymember Matt Haney (D–San Francisco) introduced AB 1633 on January 27, a measure that would tax profits from for-profit corporations that operate ICE-funded private immigration detention facilities in California. 

Haney said ICE’s use of private detention facilities profits from human suffering and family separation while conditions remain inhumane.

“Corporations running these facilities are being paid hundreds of millions to detain people in cruelty right here in California, and it has to end,” Haney said.

AB 1633 would impose a 50% tax on gross receipts from ICE and other federal detention contracts in California. 

It would also require the revenue to be reinvested in immigration‑related services.

Haney says this would reduce incentives for corporate profit while supporting the state’s response to harms from mass detention.

California ICE-funded facilities have faced violations

California has seven ICE-funded private immigration detention facilities operated by for-profit corporations.

Some have faced documented health, safety, and medical care violations.

California attorney general Rob Bonta has raised concerns about conditions at the newly opened California City Detention Facility. He reported to the U.S. Department of Homeland Security that the facility was not adequately prepared to house detainees. 

His review identified several issues, including unfilled staff positions, inadequate medical care, unsanitary living conditions, and incomplete records.

Haney said despite these findings, private detention corporations continue to receive ICE contracts funded by federal tax dollars.

For-profit detention companies like GEO Group receive over $142 million to operate ICE facilities in Adelanto and Desert View, and more than $105 million for the Golden State Annex and Mesa Verde centers.

CoreCivic is paid about $130 million to operate the ICE‑funded California City facility and more than $138 million for its Otay Mesa center.

RELATED: Progressive Caucus backs CA lawmaker’s bill to redirect $175B in ICE funds to affordable housing

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