AB 2465 Now Awaits Governor’s Newsom’s Signature
SACRAMENTO — Amid increasing child detentions, deaths in ICE custody, and deadly encounters between agents and the public, private contractors carrying out Trump’s deportation agenda are posting billions in profits financed by taxpayers. But California is advancing a proposal to cut off one source of taxpayer largesse: state tax breaks and other perks.
“I was three years old when my parents brought me here. I’m not spending one dime of California money on helping ICE lock up kids like me,” said Assemblymember Liz Ortega (D-San Leandro), author of AB 2465.
The bill, which has passed its final vote in the legislature and is headed to Governor Newsom’s desk, would prohibit corporations that own, operate, or profit from private detention facilities—or that contract with agencies engaged in immigration enforcement—from receiving state-funded benefits, including grants, loans, and tax credits.
CoreCivic and GEO Group, the two largest for-profit detention centers contracting with ICE, recently announced a record $1.4 billion in combined revenue for the spring quarter of 2026. On a recent earnings call, CoreCivic executives bragged about a $1.6 billion net windfall from detention center sales to the federal government. 1
“They are doing all of this for profit―keeping children in cages, locking innocent people up, denying them care―so that people who are already rich can get even richer,” said Ortega.
Fatalities in ICE custody have reached 1 death every 4 days―a 22-year high. Detainees report being denied medical care, food, and clean water. The Department of Homeland Security has denied wrongdoing and announced it will change how it counts in-custody deaths. A recent analysis of court rulings found that 90% of ICE detentions that were contested in court were ruled illegal.
Despite California’s efforts to limit for-profit detention, current law does not explicitly bar these companies from receiving taxpayer-funded support. AB 2465 ensures that state resources do not subsidize business practices that conflict with California’s values or contribute to unlawful detention and civil rights violations.
The bill also establishes the California Immigrant Resilience Fund, which will support immigrant legal services and community-based programs across the state.
Recent investigations have raised serious concerns about conditions inside private detention facilities. A 2025 inspection by the California Department of Justice identified dangerous living conditions and inadequate medical care at a large detention facility in Kern County. Additional reports have documented physical abuse and inhumane conditions, including lack of running water, food, and medical treatment.
“These practices are not only inhumane—they are destabilizing communities, throwing local economies into chaos,” Ortega added. “No one should be detained without due process, and we certainly should not be supporting human rights violations with taxpayer funds.”
If signed by Governor Gavin Newsom, AB 2465 would make California the first state in the nation to cut off state-funded benefits to ICE contractors — a direct rebuke to the Trump administration's violent immigration agenda.
Broad Support
AB 2465 is co-sponsored by:
- California Immigrant Policy Center
- PICO California
- State Superintendent of Public Instruction Tony Thurmond
Assemblymember Ortega can be available for press today. For press availability, contact Veronica Lopez at (951) 520-7386 (text preferred).
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Assemblymember Liz Ortega is Chair of the Assembly Committee on Labor & Employment and sits on the Assembly Committees on Budget; Insurance; Privacy and Consumer Protection; Arts, Entertainment, Sports, and Tourism; and Budget Subcommittee No. 5 on State Administration. She represents the 20th Assembly District, encompassing all or a portion of the cities of Hayward, San Leandro, Union City, Dublin, Pleasanton and the unincorporated areas of Ashland, Cherryland, Fairview, San Lorenzo, and Castro Valley.
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