September 29, 2026
AB 1633 (Haney) Directs Detention Industry Profits Into Due Process for California Families
Sacramento, Calif. (Sept. 29, 2026) — California will no longer let corporations profit from locking up our neighbors without paying back the communities they harm. Gov. Newsom today signed AB 1633 (Haney), the first law in the nation to impose a 25% tax on the gross income of for-profit corporations that operate private immigration detention facilities. The revenue will go to a new Due Process for All Fund to support immigration services for California families.
“No one should profit from tearing families apart,” said Masih Fouladi, executive director of the California Immigrant Policy Center. “Private detention corporations make hundreds of millions of dollars every year in California by separating parents from their children and locking up our neighbors in inhumane conditions. AB 1633 makes them pay for the trauma and suffering they inflict and puts that money where it belongs: into protecting the health, safety and rights of immigrant families. We thank Gov. Newsom and Assemblymember Matt Haney for making California the first state in the nation to hold this industry accountable through our tax code.”
The California Immigrant Policy Center (CIPC) and its 220 coalition partners thanked the legislators who supported AB 1633. They urged the Governor to sign its companion bill, AB 2465 (Ortega), the No Taxpayer Dollars for Family Separation Act, before the Sept. 30 deadline. AB 2465 would make companies that profit from immigration detention ineligible for state grants, loans, and tax credits.
“AB 1633 makes these corporations pay. AB 2465 would stop California from subsidizing them in the first place,” Fouladi said. “Together, they send one message: California will not bankroll the business of family separation.”
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