Bay Area Assemblyman Proposes 50% Tax on Private ICE Detention Center Profits

Legislation aims to limit expansion of ICE operations and hold private companies accountable for profiting off immigrant detention in California.

Jan. 31, 2026 at 2:47pm

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Assemblyman Matt Haney has introduced a bill, AB1633, that would levy a 50% tax on the profits of private immigration detention centers in California. Haney says the bill is intended to undermine ICE's ability to operate in the state and dissuade companies from opening new detention facilities, as well as hold current operators accountable for profiting off the incarceration of Californians.

Why it matters

The proposed legislation is a response to growing concerns over the human rights violations and lack of accountability at private ICE detention centers in California, as well as the expansion of ICE's deportation force across the state. By targeting the profits of these private companies, the bill aims to limit ICE's ability to detain and deport California residents.

The details

Haney's bill would impose a 50% tax on the profits of private immigration detention centers operating in California. The assemblyman says these facilities have taken in hundreds of millions in annual revenue by partnering with ICE to detain immigrants, including many from the Bay Area, despite the centers' 'awful track records of human rights violations.' Haney hopes the tax will discourage companies from opening new detention centers and prevent current operators from profiting off immigrant incarceration.

  • Assemblyman Matt Haney introduced the bill, AB1633, on Monday, January 27, 2026.

The players

Assemblyman Matt Haney

A California state assemblyman representing the 17th District, which covers the eastern part of San Francisco. Haney introduced the bill to tax profits of private ICE detention centers in the state.

Shiu-Ming Cheer

The deputy director of the California Immigrant Policy Center, which co-sponsored Haney's bill. Cheer says the legislation is a step toward holding for-profit corporations accountable for profiting off the detention of Californians.

Alex Mensing

A spokesman for the California Collaborative for Immigrant Justice, an organization working to prevent the reopening of the former FCI Dublin federal prison as an ICE detention center. Mensing calls Haney's bill a 'creative use of the tools' to discourage ICE's profiteering partnerships.

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What they’re saying

“ICE is engaged in a reign of terror across the country and they plan to grow their attacks on California. We have to be ready, and this is a way we can undermine their ability to operate here.”

— Assemblyman Matt Haney (Bay Area News Group)

“Private detention facilities in California have been tearing families apart and profiting off of Californians being detained. We've seen people who have died in these facilities. This bill is one step toward holding for-profit corporations accountable for profiting off of holding Californians in custody.”

— Shiu-Ming Cheer, Deputy Director, California Immigrant Policy Center (santacruzsentinel.com)

“It's complicated for local governments to directly attack federal laws. This is a really good creative use of the tools at their disposal to discourage this profit.”

— Alex Mensing, Spokesman, California Collaborative for Immigrant Justice (santacruzsentinel.com)

What’s next

The California State Assembly will consider Assemblyman Haney's bill, AB1633, in the coming legislative session.

The takeaway

Haney's proposed 50% tax on private ICE detention center profits in California represents a novel approach by state lawmakers to limit the expansion of immigration enforcement and hold corporations accountable for profiting off the detention and deportation of the state's residents, even as the federal government continues to expand its deportation force.