California Bills Seek to Hit ICE Contractors With Tax Hikes

Jan. 28, 2026, 11:51 PM UTC

California lawmakers are introducing tax legislation aimed at pressuring companies in the state to stop contracting with the US Department of Homeland Security.

One bill announced Wednesday would prohibit DHS contractors—ranging from private-prison operators to software companies—from claiming a slew of tax benefits, while another would impose a 50% tax on companies that operate detention facilities for Immigration and Customs Enforcement and other federal agencies.

The measures proposed so far come in the aftermath of the shooting deaths of Minnesota residents Renée Good and Alex Pretti by federal agents involved in an immigration enforcement surge in the state. The tax ...

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