Newsom slaps 25% tax on private detention centers in sweeping pushback against key Trump policy

California Governor Gavin Newsom has signed legislation placing a 25% tax on private detention centers, including every facility in the state that works with Immigration and Customs Enforcement (ICE). Designated AB 1633, the measure was one of 20 bills he signed Tuesday, and it takes effect July 1, 2028. Newsom presented it as a way to resist President Donald Trump's immigration crackdown and the privatization of federal enforcement, saying that if private facilities cannot be removed, the state will target their profits, according to Fox News.

Money from the levy, which is charged on gross income of operators holding federal, state or local contracts, is earmarked for a Due Process for All Fund that would pay for immigration-related services.

Hans von Spakovsky, a senior legal fellow at the conservative-leaning think tank Advancing American Freedom, told Fox News Digital the tax is meant to ensure no private landlord or contractor in California will lease space to the federal government. He said the government could instead turn to properties it owns, which California cannot tax, such as warehouses or office space. Critics also ask what happens if all eight of ICE's detention centers in the state suspended operations.

Summarized by PolitiKool from Fox News’s reporting. Read the full story at Fox News →