Governor Gavin Newsom signed a law with a heavy price tag. It taxes private detention centers at twenty-five percent. This fee hits every facility working with federal agents. Newsom wants to squeeze profits if he cannot close them. He called it a stand against current immigration rules. The law targets private contractors leasing space to the government. It applies to all contract recipients in the state. Revenue goes into a fund for immigration services. The tax starts on July 1, 2028. That date falls near the end of Trump’s term.
Hans von Spakovsky is an expert at Advancing American Freedom. He told Fox News the goal is clear. He said it aims to stop private leasing deals. California hosts eight ICE detention facilities today. All of them are run by private companies. The GEO Group owns five of these centers. Imperial Valley Gateway Center LLC owns one more. CoreCivic runs two others on federal land. These contracts last until 2027 and 2029.
Spakovsky warned this move could shrink detention space. ICE currently has room for sixty-six thousand detainees. That is the full size of federal capacity. If private firms leave, the government must adapt. Spakovsky said the federal government might use its own land. This could mean turning warehouses into holding cells. State officials cannot tax federal property directly.
Newsom also signed bills banning shock gloves in enforcement. He said this protects access to the courts. He claimed state law applies to all activities here. Spakovsky disagreed with this view of the situation. He believes the governor is limiting federal operations. Spakovsky noted the government uses contractors to save money. Building their own facilities costs far more.
If California becomes too expensive, ICE may look elsewhere. Spakovsky suggested moving detainees to neighboring states. He pointed to Arizona and Nevada as likely spots. These states might welcome federal money and jobs. Private contractors would hire local workers for sites. Spakovsky said these states want the economic boost.
The bill does not start for several years. However, Spakovsky thinks the government will plan early. He said ICE might seek new partners soon. The Department of Homeland Security reports on these needs. The current system relies on private operators heavily. Removing them changes how enforcement works on the ground. Newsom’s office did not respond to comment requests. The tax creates a high financial barrier for firms. It forces a choice between high costs or federal land. The final outcome remains unclear until the tax starts.