New Jersey Lawmakers Advance Proposal to Place New Taxes on Private Immigration Detention Facilities
A new proposal moving through the New Jersey Legislature could significantly increase the financial burden on private companies that operate immigration detention centers in the state, reigniting a debate over immigration enforcement, detention practices, and the role of private prison operators.
The legislation, known as A4077, would create a new tax structure for privately operated immigration detention facilities in New Jersey. Under the proposal, private prison companies would be required to pay a daily fee for every detainee housed in their facilities, along with an additional tax tied to the value of their government contracts.
If enacted, the measure could result in thousands of dollars in daily costs for detention center operators.
New Jersey currently has two privately managed immigration detention facilities: Delaney Hall in Newark and the Elizabeth Detention Center. Together, these facilities have the capacity to hold more than 1,000 detainees. Delaney Hall is operated by GEO Group, while the Elizabeth Detention Center is managed by CoreCivic. Both companies hold contracts with U.S. Immigration and Customs Enforcement (ICE).
Supporters of the legislation argue that private corporations earning revenue from detention operations should contribute more toward the public costs associated with those facilities. Assemblywoman Mitchelle Drulis, one of the bill’s sponsors, said the proposal is designed to ensure that companies benefiting financially from incarceration also help cover the burdens placed on communities and taxpayers.
According to supporters, the legislation reflects New Jersey’s long-standing focus on fairness and accountability. They argue that taxpayers should not be left responsible for costs connected to corporate detention operations while private companies continue to profit from government contracts.
The proposal has drawn criticism from federal officials. The U.S. Department of Homeland Security pushed back against the measure, saying that immigration enforcement efforts will continue regardless of additional taxes placed on detention contractors. Federal officials also emphasized the importance of cooperation between state and federal authorities in carrying out immigration enforcement activities.
The debate arrives several years after New Jersey lawmakers attempted a different approach to limiting immigration detention within the state. In 2021, state officials passed legislation aimed at prohibiting private prison contracts related to immigrant detention. However, that effort was ultimately overturned in court. In 2025, a federal appeals court ruled that the law interfered with the federal government’s authority over immigration enforcement, preventing the state from enforcing the ban.
Republican lawmakers have questioned whether the new tax-focused strategy would survive legal challenges. Critics argue that immigration detention has been authorized under federal law for decades and believe the proposal could face the same legal obstacles that affected previous state efforts.
Assemblywoman Dawn Fantasia criticized the legislation, arguing that New Jersey has already faced setbacks in court regarding immigration detention policy. She also raised concerns about how revenue generated under the proposal would be used, noting that part of the funding would support legal defense programs connected to detention and deportation cases.
The bill has already cleared two Assembly committees after amendments were made, marking an important step forward in the legislative process. However, it has not yet received a vote before the full Assembly. A matching proposal has also been introduced in the state Senate, though it has not yet been scheduled for a hearing.
Before becoming law, the measure would need approval from both chambers of the Legislature and the signature of Governor Mikie Sherrill.
The legislation is advancing at a time when immigration detention remains a highly visible issue across New Jersey. Public demonstrations have continued outside Delaney Hall in Newark, where tensions recently increased following a detainee hunger strike and confrontations involving protesters and law enforcement.
Governor Sherrill has also faced criticism from immigration advocates regarding the state’s response to the protests. At the same time, the governor recently announced more than $20 million in funding intended to support legal defense services for immigrants facing detention and deportation proceedings.
Under the proposed legislation, a portion of the tax revenue collected from private detention operators would be directed toward similar legal assistance programs.
As lawmakers continue debating A4077, the proposal has become the latest chapter in New Jersey’s ongoing struggle to balance immigration enforcement concerns, legal authority, community interests, and the role of private companies in the detention system. The outcome of the legislation could have significant implications for immigration detention operations across the state in the months ahead.
