{"id":2838,"date":"2026-05-21T14:02:14","date_gmt":"2026-05-21T14:02:14","guid":{"rendered":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/21\/ca-lawmakers-turn-to-tax-law-to-target-private-immigration-prisons-contractors-2\/"},"modified":"2026-05-21T14:02:14","modified_gmt":"2026-05-21T14:02:14","slug":"ca-lawmakers-turn-to-tax-law-to-target-private-immigration-prisons-contractors-2","status":"publish","type":"post","link":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/21\/ca-lawmakers-turn-to-tax-law-to-target-private-immigration-prisons-contractors-2\/","title":{"rendered":"CA lawmakers turn to tax law to target private immigration prisons, contractors"},"content":{"rendered":"
<\/p>\n

A trio of bills steaming through the California Assembly would use the tax code to disincentivize private prison companies and other companies from taking federal contracts for immigration enforcement in the state.<\/p>\n

Read more After $24M move to FBS football, Sac State will net $225K in 2026 game guarantees<\/a><\/p>\n

<\/p>\n

The bills are being driven by the California Legislature\u2019s fierce interest in checking President Donald Trump\u2019s immigration enforcement crackdown. Lawmakers have advanced the bills despite concerns from business associations that they\u2019re too broadly worded, and over warnings from legislative attorneys that one measure might fall into similar constitutional limitations that lawmakers hit in 2019, when they tried to ban private immigration prisons in the state outright.<\/p>\n

<\/p>\n

Lawmakers this year are trying only slightly more subtle tactics to curb private prison companies. Assemblymember Matt Haney, D-San Francisco, introduced a bill to tax private prison companies a whopping 50% of their profits.<\/p>\n

<\/p>\n

\u201cDespite the fact that California has passed laws in the past saying that we don\u2019t want private prisons or private immigration detention in our state, they operate with very little accountability or oversight,\u201d Haney said of CoreCivic and GEO Group, the two main private prison companies operating in the state, in an interview with The Sacramento Bee on Monday. A third company, Management and Training Corporation, operates a detention center in the Imperial Valley.<\/p>\n

<\/p>\n

U.S. Immigration and Customs Enforcement contracts with the three companies to manage eight detention facilities in California, two of which represent expansions made during the second Trump administration. As of April 2, those facilities were holding more than 5,800 people, according to Syracuse University\u2019s Transactional Records Access Clearinghouse.<\/p>\n

<\/p>\n

ICE expanded into a 700-bed GEO-run facility in Kern County in the Central Valley late last month, according to prior Bee reporting.<\/p>\n

<\/p>\n

The companies that run detention centers for ICE are \u201ccontributing to family separation and human suffering,\u201d Haney said. \u201cAnd my bill simply says, if they\u2019re going to operate here, they should pay for the harm that they\u2019re causing.\u201d<\/p>\n

<\/p>\n

Unlike two other bills targeting immigration enforcement contractors in the state, Haney\u2019s bill hasn\u2019t faced opposition from California business and contracting associations. That\u2019s likely because his bill is narrowly tailored to hit the gross receipts of just the private prison companies, not ancillary government contractors, he told The Bee. CoreCivic and GEO representatives have not been visibly active lobbying against the bill in the Capitol, where the companies are deeply unpopular after a litany of allegations of human rights violations against the immigrants held in their facilities.<\/p>\n

<\/p>\n

But CoreCivic executives are clearly worried.<\/p>\n

<\/p>\n

\u201cAlthough it is uncertain whether AB 1633 will be enacted into law,\u201d company officials wrote in a notice to shareholders filed with the United States Securities and Exchange Commission, \u201cwe can provide no assurance that it will not be enacted, and if enacted, would not impact our … operations and cash flows.\u201d<\/p>\n

<\/p>\n

Legislative analysts warned, in their review of Assembly Bill 1633, that it could run into constitutional problems. In 2019, now-California Attorney General Rob Bonta successfully sponsored a measure outright banning private prison facilities within California. But attorneys for the first Trump administration successfully argued in court that, because the federal government so thoroughly relied on private prison companies to carry out immigration detention, California\u2019s ban amounted to the state trying to outlaw federal immigration enforcement within the state.<\/p>\n

<\/p>\n

Ultimately, the 9th Circuit Court of Appeals in San Francisco ruled Bonta\u2019s law violated the U.S. Constitution\u2019s supremacy clause, which gives federal law precedence over state law when the two conflict. Legislative analysts warned that prison companies or the federal government may be able to challenge Haney\u2019s bill, if not on supremacy grounds, then on the idea that the narrowly targeted tax is discriminatory.<\/p>\n

<\/p>\n

Haney\u2019s bill is waiting for its third reading in the Assembly, before crossing over to the Senate.<\/p>\n

<\/p>\n

Other bills target contractors, businesses raise concerns<\/h2>\n

<\/p>\n

Assemblymembers Liz Ortega, D-San Leandro, and Alex Lee, D-San Jose, have brought separate bills that aim for the same goal \u2014 ensuring businesses that contract with DHS\u2019s immigration and border enforcement agencies can\u2019t benefit from California\u2019s business tax credits. Though the bills have different language, their essential structure would make companies that contract with ICE, U.S. Customs and Border Protection, or a private prison company ineligible for the state\u2019s various business tax credits.<\/p>\n

Read more West Sacramento council passes policy to restrict ICE use of city resources<\/a><\/p>\n

<\/p>\n

The tax dollars those companies would then have to pay go into a fund supporting immigrant services and legal defense.<\/p>\n

<\/p>\n

\u201cICE\u2019s corporate collaborators are profiting from human suffering,\u201d Lee said in a statement this week celebrating his bill\u2019s passage through the key Assembly Appropriations Committee. \u201cThe No Tax Breaks For ICE Contractors Act ensures that public dollars are not enriching corporations that enable ICE\u2019s lawless violence.\u201d<\/p>\n

<\/p>\n

Lee cited private prison companies and the data giant Palantir, which contracts with DHS for tracking software, as well as airlines that are offering their planes up for deportation use and a California company that makes restraints for ICE. His press release did not name another California technology giant, Anduril. That company has Southern California facilities, a CBP contract for automated surveillance towers and close ties between its executives and Trump administration officials. An Anduril spokesperson did not respond to The Bee\u2019s request for comment on Wednesday about whether it was affected by the two bills and if it opposed them.<\/p>\n

<\/p>\n

More than a dozen California business groups, however, including organizations like the California Chamber of Commerce, the California Bankers Association and the California Trucking Association, do oppose the bills. The groups are quick to make clear, however, that their opposition does not come \u201cin defense of (ICE) or their recent conduct and the escalating tensions it has caused,\u201d according to a May 7 letter provided to The Bee by a spokesperson for the California Chamber of Commerce.<\/p>\n

<\/p>\n

\u201cOn the contrary, we oppose the economic disruption caused by recent federal immigration activities and have long supported the creation of a pathway to citizenship for undocumented workers, as they are critical to addressing California\u2019s workforce needs,\u201d the letter continues.<\/p>\n

<\/p>\n

Business groups oppose the legislation, they say, because despite the authors\u2019 intentions, the bills could still create problems for companies that contract with DHS in areas outside immigration enforcement. The bills\u2019 authors have argued their measures are sufficiently narrow to capture only companies doing business with ICE and CBP.<\/p>\n

<\/p>\n

But lobbyists opposing the measures have argued DHS contracts to provide software to cybersecurity efforts or disaster relief supplies to the Federal Emergency Management Agency could potentially lead to a loss of business tax credits.<\/p>\n

<\/p>\n

On a more philosophical level, opponents say California lawmakers shouldn\u2019t put businesses in a position where they\u2019re squeezed between the legislatures of conservative and liberal-leaning states.<\/p>\n

<\/p>\n

\u201cBusinesses end up stuck between competing political priorities for different politicians in different regions when the business is merely trying to continue to operate,\u201d the Chamber of Commerce letter read.<\/p>\n

<\/p>\n

ICE challenges in the Legislature<\/h2>\n

<\/p>\n

The three bills are just one part of a wave of legislation through which lawmakers hope to challenge Trump\u2019s immigration enforcement crackdown. Lawmakers introduced many of those bills, with the full-throated support of Legislative leadership, amid the uproar that followed ICE and CBP agents shooting and killing two Minneapolis protesters, Alex Pretti and Renee Good, at the start of the year.<\/p>\n

<\/p>\n

Despite the immediacy Senate and Assembly leaders expressed after those deaths, they have not moved to put together an urgency package of immigration bills and have instead let the measures move through committees normally. The vast majority of anti-ICE bills appear to be passing without friction. Haney told The Bee on Monday he had not received word of leadership putting together an immigration bill package.<\/p>\n

Read more California home prices \u2018hit a new record\u2019 high. What can buyers expect to pay?<\/a><\/p>\n

<\/article>\n","protected":false},"excerpt":{"rendered":"

California Assembly bills would tax private prison profits and strip tax credits from ICE contractors, targeting CoreCivic, GEO Group and companies working on immigration enforcement.<\/p>\n","protected":false},"author":1,"featured_media":2829,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capitol-alert"],"yoast_head":"\nCA lawmakers turn to tax law to target private immigration prisons, contractors - San Diego Relocation News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/21\/ca-lawmakers-turn-to-tax-law-to-target-private-immigration-prisons-contractors-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CA lawmakers turn to tax law to target private immigration prisons, contractors - 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