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California Governor Gavin Newsom signed Assembly Bill 1633 into law earlier this week, imposing a 25% tax on the gross income of private detention facilities that partner with Immigration and Customs Enforcement (ICE).
The legislation targets all eight privately operated ICE facilities currently located in the state, with the mandate taking effect on July 1, 2028.
Newsom framed the measure as a direct response to federal immigration enforcement strategies, stating that if California cannot remove private facilities, it will target their profits.
The bill was one of twenty signed by Newsom on Tuesday. Revenue generated from the tax will be directed to a "Due Process for All Fund," which is designated for immigration-related services.
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