Bill would bar state grants and loans to private contractors that work with ICE; committee advances after heated debate

Senator Caballero presented SB 1171, which would bar private entities that contract with U.S. Immigration and Customs Enforcement from receiving state grants or loans. "California has an obligation to ensure its resources are used to protect the residents of the state," Caballero said, arguing the measure prevents state dollars from subsidizing federal enforcement actions that members said have harmed communities.

The California Chamber of Commerce and other business groups opposed the bill, cautioning it could sweep in companies that provide essential services to detainees — such as medical providers, legal research firms or food contractors — and thus penalize businesses that perform critical, sometimes court‑ordered, work. "I had a health care member reach out to me... We provide nursing services to people being detained. Is that something that's a problem under this bill?" the Chamber's representative asked the committee.

Senators debated how to balance the bill's intent with unintended consequences. The author acknowledged the concern and said she would consider narrowing the language to avoid punishing firms that provide necessary services. The committee voted to pass the bill as amended to the local government committee; the roll call in the transcript records the committee reported SB 1171 with a tally recorded (10‑4) and kept the roll open for absent members.