SACRAMENTO, Calif. — Assemblymember Alex Lee announced Monday the introduction of AB 1675, the “No Tax Breaks for ICE Contractors Act,” legislation that would prevent California taxpayer dollars from subsidizing corporations that contract with U.S. Immigration and Customs Enforcement.
In a press release issued Feb. 2, Lee’s office said the bill would ensure that no California tax benefits “bankroll corporations profiting off of ICE’s blatant violation of constitutional rights.”
Lee represents the 24th Assembly District and was elected in 2020, becoming the youngest Asian American legislator elected to the California Legislature.
The press release alleges that corporations described as “mercenaries and private prison operators” have secured multimillion-dollar federal contracts tied to ICE enforcement operations. According to the release, these corporations profit while ICE “kills American citizens, tears apart families, kidnaps children and houses detainees in inhumane immigration detention centers,” even as they benefit from California tax breaks that cost the state more than $7 billion annually.
“More kidnappings mean more profits for ICE contractors,” Lee said in the release. “By doing business with armed and masked thugs acting with impunity, corporations are raking in multimillion-dollar deals and tearing families apart. ICE must be abolished and its rogue elements prosecuted.”
The statement says AB 1675 would ensure that California does not subsidize corporations that profit from ICE enforcement activity and would instead redirect public investments to communities.
The release cites financial disclosures from private prison companies to bolster its claims. GEO Group, the statement notes, has projected that a transportation subsidy would add “an additional $50 million in annual revenue for deportation flights alone.”
The release also points to statements by CoreCivic leadership, noting that the company’s CEO told investors, “Our business is perfectly aligned with the demands of this moment.” According to the release, CoreCivic reported a 10% increase in revenue from the previous year, earning $538.2 million in the second quarter of 2025.
The release further states that CoreCivic “announced a $130 million contract with ICE to operate a 2,560-bed immigration detention center in Kern County.” It adds that detainees and advocates have reported inhumane conditions at such facilities, including restricted access to food, hygiene and medical care.
Beyond private prison operators, the release says a range of other corporations are profiting from ICE-related contracts, including transportation providers, unmanned aircraft suppliers, armed security services and software companies.
As an example, the release states that Palantir received a $30 million contract to develop software used to track immigrants. Another company, California-based Safe Restraints Inc., is contracted to manufacture full-body restraint suits used in ICE deportations.
The release concludes by stating that AB 1675 would prohibit companies contracting with the Department of Homeland Security from benefiting from specific state tax provisions, including the Employer Pension Contributions Exclusion and the Employer Contributions to Health Plans Exclusion. Any additional revenue generated, the release says, would be directed to funding immigrant legal aid.
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