(TRENTON) — Assemblywoman Mitchelle Drulis and Assemblyman Gabriel Rodriguez announced the introduction of A4077, the Knowledge, Accountability, and Rights in Incarceration Markets (KARIM) Act, landmark legislation designed to impose new taxes and fees on operators of private detention facilities in New Jersey. The bill aims to offset the significant social and economic costs associated with federal immigration incarceration, costs that have increasingly fallen on New Jersey taxpayers and communities.

Private federal detention centers generate billions in annual revenue through federal contracts, with more than 90 percent of U.S. immigration detention now managed by for‑profit corporations. In 2025 alone, just two companies reported more than $4.8 billion in combined revenue nationally, buoyed by contracts to expand detention capacity and reopen shuttered facilities. Industry analysts expect continued growth in 2026, with profits per detainee projected to rise sharply.

New Jersey has not been spared from this trend. Profits from private detention operations in the state increased by more than 10 percent on a quarterly basis last year. Meanwhile, recent news reports indicate that warehouses in New Jersey communities are being evaluated as potential sites for additional federal immigration detention centers, raising concerns about further strain on taxpayers, local resources, and public services.

“These privately run detention sites are funded with federal tax dollars,” said Assemblywoman Drulis. “New Jersey consistently ranks among the lowest in the nation for federal return on investment, receiving only about 67 to 78 cents for every dollar we send to Washington. And now the federal government wants to place additional burdens on New Jersey taxpayers with these detention centers.”

The KARIM Act would direct revenue generated from the new taxes and fees to:

·       Accredited institutions of higher education providing legal services through the Detention and Deportation Defense Initiative

·       Community‑based programs supporting food security, housing, recreation, job training, and youth mentorship

·       The State, and county and municipal governments where private correctional facilities are located to offset local impacts such as additional strains on police and fire services.

“This legislation sends an unmistakable message: New Jersey will not be an easy target for private prison corporations looking to expand their footprint," Assemblywoman Drulis said. "By imposing real financial consequences, we are making it clear that profiting from the incarceration of vulnerable people will not be a viable business model in our state. New Jersey communities should not be forced to subsidize a federal detention system that enriches private corporations while harming families and destabilizing neighborhoods.”

“This bill is about fairness, accountability, and protecting New Jersey communities," Assemblyman Rodriguez added. "For too long, private detention corporations have profited while local taxpayers shoulder the hidden costs and families bear the human consequences. The KARIM Act ensures that if companies choose to operate in our state, they must contribute to the very communities and services impacted by their presence, not exploit them.”

Assemblywoman Drulis noted that the legislation was inspired in part by the experience of Hunterdon County constituent Karim Daoud, who was wrongfully detained for more than nine months at a privately operated facility in Elizabeth, separated from his wife and children. His case, she said, underscores the human toll of a system driven by profit rather than justice.