AMENDED IN ASSEMBLY JULY 2, 2026

AMENDED IN SENATE APRIL 23, 2026

AMENDED IN SENATE APRIL 15, 2026

AMENDED IN SENATE MARCH 23, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

95

Introduced by Senator Caballero

February 18, 2026

An act to add Chapter 5.3 (commencing with Section 8335) to Division 1 of Title 2 of the Government Code, relating to state-funded programs.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law establishes various benefit programs, including grant programs and loan programs. Existing law, the California Values Act, generally prohibits California law enforcement agencies from using their moneys or personnel for immigration enforcement purposes, except as specified.

This bill would prohibit an administrator of a covered program, as those terms are defined, from awarding a grant or issuing a loan from a covered program to a private entity that contracts with United States Immigration and Customs Enforcement, except as specified. The bill would require each private entity applying to a covered program to agree to identify to the administrator of that covered program any subcontractors to be used under the contract and to certify to the administrator that the subcontractors do not contract with United States Immigration and Customs Enforcement. The bill would require an administrator to include in their eligibility requirements for their covered programs that an eligible private entity and its subcontractors for each covered program, if any, shall not contract with United States Immigration and Customs Enforcement. The bill would make related findings and declarations.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

By imposing additional duties on local agencies and expanding the scope of a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) California is home to nearly 11,000,000 immigrants, including over 2,000,000 undocumented residents. Immigrants enrich our communities, strengthen our economy, and contribute to the cultural and social fabric of California.

(b) Immigrants are the backbone of California’s economy. Undocumented immigrants are responsible for sourcing one-half of a trillion dollars’ worth of products, representing 5 percent of the state’s gross domestic product. Immigrants also make up nearly one-half of California’s agricultural workers and fuel key industries like manufacturing, construction, and hospitality. Immigrants contributed over $50 billion to California’s state and local taxes and nearly $82 billion to federal taxes in 2021.

(c) Business associations and local governments in California communities across the state have reported workforce disruptions and decreased consumer activity following large-scale immigration enforcement operations. Recent reports have found that mass deportations in California could result in a $275-billion loss to California’s economy, a $23-billion reduction in annual tax revenue, and delays in major construction projects, reduced food supplies, and an increased cost of goods.

(d) Almost one-half of all children in California have at least one immigrant parent, and one in five children in California live in mixed-status families. The indiscriminate raids and United States Immigration and Customs Enforcement (ICE) enforcement operations have torn families apart through prolonged, and sometimes unlawful, detentions and deportations.

(e) Family separations leave long-lasting emotional trauma for children and families, increase psychological stress, and contribute to physical health issues, social isolation, and setbacks to educational and economic opportunities.

(f) Since June 6, 2025, ICE has conducted military-style immigration raids, arrests, and harassment at California worksites, homes, and public spaces. This has created a climate of fear among immigrants, citizens, and mixed-status families when dropping their children off at school, going to work, attending faith services, seeking medical or emergency services, shopping for essential needs, or attending routine immigration check-ins and appointments.

(g) The federal administration’s immigration raids have been heavily militarized and disproportionately affect communities of color, separating family members, severely undermining public safety and trust in local governments, and deterring individuals from accessing health care, education, and emergency services.

(h) ICE agents have conducted operations and raids while wearing masks and driving in unmarked vehicles, all while using violent and aggressive enforcement tactics.

(i) ICE has used tactics designed to hide their identity, such as using unmarked rental cars to conduct government business and avoid being identified as law enforcement. Reports in other states have found that agents have switched or altered the license plates on these rented vehicles to hide or confuse the public that is demanding accountability.

(j) ICE agents have been filmed across the country assaulting citizens who were lawfully and peacefully protesting. ICE agents have tackled people from behind, shoved others to the ground, put protestors in chokeholds, pepper sprayed protestors at point-blank range, and even shot and killed multiple protestors.

(k) In multiple instances throughout the country, ICE enforcement actions have resulted in litigation and judicial determinations that address alleged violations of constitutional protections, including violations of the Fourth, Fifth, and Fourteenth Amendments to the United States Constitution.

(l) Media reports, court filings, and civil rights complaints have documented allegations of excessive use of force, unlawful detention, racial profiling, and mistaken detention of United States citizens and lawful residents in connection with immigration enforcement activities.

(m) Recent news reports have reported that rapid hiring surges within federal border and immigration agencies resulted in increases in misconduct investigations, including corruption-related offenses.

(n) On February 23, 2026, a former ICE instructor responsible for educating new ICE officers on proper use of force provided whistleblower testimony about the agency’s decision to rapidly increase their ranks at the expense of properly training the new officers on lawful ways to carry out law enforcement actions.

(o) In California, ICE’s privately operated detention facilities hold thousands of people each year. Recent reports from government oversight bodies, such as the United States Department of Homeland Security Office of the Inspector General, have documented unsafe conditions which have caused preventable illness, injury, and death in these facilities.

(p) The federal administration has earmarked $75 billion in additional funds for ICE operations across the country. The bulk of that spending is slated to fund an increase in the government’s capacity for adult and family detention centers.

(q) Thirty-two confirmed deaths occurred in ICE’s custody in 2025, marking the federal government’s deadliest year in more than two decades. The massive increase in detained persons in California, coupled with reduced training and oversight from the federal administration, is likely to cause an increase in fatalities.

(r) Despite federal law guaranteeing members of the United States Congress the authority to conduct oversight visits at ICE facilities in California in order to inspect the conditions of detention, including the federal “B-18” detention facility in Los Angeles and the Adelanto ICE Processing Center, entry for that purpose has been denied.

(s) ICE facilities have repeatedly prevented attorneys from accessing or speaking to their detained clients, thereby depriving citizens and immigrants of due process and a means to communicate about their detention and treatment.

(t) ICE has moved detained persons without notice to attorneys or family members, deported detained persons without a hearing or without legal representation, and deported immigrants to countries they have no connection with and have never been to.

(u) California has a responsibility to the taxpayers of the state to ensure that tax revenues collected are spent in a manner that aligns with the values and priorities of the state. This includes investing in programs, initiatives, and entities that promote community stability, safety, inclusivity, and the overall well-being and protection of California residents, as well as not investing in programs, initiatives, and entities who do not align with California’s values. As the steward of these public funds, the state government must be diligent in allocating resources in a way that reflects the interests and ideals of the people of California.

SEC. 2.

Chapter 5.3 (commencing with Section 8335) is added to Division 1 of Title 2 of the Government Code, to read:

Chapter 5.3. State Loan and Grant Eligibility

8335.

For purposes of this chapter, the following definitions shall apply:

(a) “Administrator” means a state agency, local agency, or third-party contractor administering a covered program.

(b) “Covered program” means a grant program or loan program that uses state funds.

(c) “Local agency” means any city, county, special district, authority, or other political subdivision of the state.

(d) “Nonprofit organization” means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)(3)).

(e) “Private entity” means a sole proprietorship, partnership, limited liability company, corporation, nonprofit organization, or other nongovernmental entity.

(f) “Third-party contractor” means either a nonprofit or other organization that contracts with a state or local agency to administer a covered program or a recipient of a grant or loan from a covered program if the conditions of the grant or loan require the grant recipient to redistribute a portion of those funds to nonprofit organizations.

8336.

(a) Notwithstanding any other law, an administrator shall not award a grant, or issue a loan, from a covered program to a private entity that contracts with United States Immigration and Customs Enforcement.

(b) Each private entity applying to a covered program shall agree to identify to the administrator of that covered program any subcontractors to be used under the contract and to certify to the administrator that the subcontractors do not contract with United States Immigration and Customs Enforcement.

(c) An administrator shall include in their eligibility requirements for their covered programs that an eligible private entity and its subcontractors for each covered program, if any, shall not contract with United States Immigration and Customs Enforcement.

8337.

This chapter shall not apply to the award of grants or issuance of loans for which an application was submitted, or award or issuance was made, before July 1, 2027.

SEC. 3.

The Legislature finds and declares that Section 1 2 of this act, which adds Chapter 5.3 (commencing with Section 8335) to Division 1 of Title 2 of the Government Code, addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 2 of this act applies to all cities, including charter cities.

SEC. 4.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.