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AB-2465 • 2026

State government: benefits.

State government: benefits.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Ortega
Last action
Official status
Senate - Appropriations
Effective date
Not listed

Plain English Breakdown

The official text states funds are available 'upon appropriation by the Legislature,' meaning no money is automatically spent until lawmakers approve it later.

State Government Benefits

This law stops certain businesses and taxpayers involved in federal immigration enforcement from getting state grants, loans, or tax credits.

What This Bill Does

  • Stops business entities that contract with the federal government for immigration enforcement from receiving specified state-provided grants or loans.
  • Prohibits disqualified taxpayers from receiving any tax credits, except as provided by law.
  • Defines a 'disqualified taxpayer' as someone who directly invests in, owns, manages, or contracts with private detention facilities or agencies engaging in immigration enforcement.
  • Excludes health care providers from these bans even if they contract with private detention facilities or agencies engaging in immigration enforcement.
  • Creates the Due Process for All Fund to hold tax money collected that would have gone to business entities made ineligible for credits by this bill.
  • Requires a two-thirds vote in both legislative houses because it results in higher taxes.

Who It Names or Affects

  • Business entities contracting with the federal government for immigration enforcement
  • Taxpayers who own, manage, invest in, or contract with private detention facilities or agencies engaging in immigration enforcement
  • Health care providers that contract with private detention facilities (exempt from bans)
  • The State Controller and state agencies managing grants and tax credits

Terms To Know

Disqualified taxpayer
A person or business that directly invests in, owns, manages, or contracts with a private detention facility or agency engaging in immigration enforcement.
Due Process for All Fund
A new state fund created to hold tax money collected from businesses made ineligible for credits by this law.

Limits and Unknowns

  • The bill does not specify the exact amount of money that will go into the Due Process for All Fund.
  • Money in the fund is only available if the Legislature approves it through an appropriation process.
  • Specific details on which immigration-related services or programs receive funding are not listed.

Bill History

  1. California Legislative Information

    Senate - Appropriations

Official Summary Text

State government: benefits.