ALCATRAZ Act

This bill creates a program inside the Department of Homeland Security (DHS) to pay back states and local governments for the costs of holding migrants in detention facilities. It covers costs starting January 20, 2025, and requires states or local governments to apply to DHS for reimbursement. To fund it, the bill shifts unused money from FEMA’s Shelter and Services Program into DHS accounts for this purpose.

Within 90 days of becoming law, DHS must send Congress a plan to work with states to quickly build new migrant detention facilities, find federal or state sites that could be used, and point out government accounts that are wasteful or redundant so money can be redirected to this program.

Key points:

• Who is affected: States and local governments that detain migrants; DHS; programs funded through FEMA’s Shelter and Services money .
• What changes: New DHS grants to reimburse detention costs; potential construction of new detention facilities; possible shifting of federal funds from other accounts.
• When: Reimbursement applies to costs on or after January 20, 2025; DHS plan due 90 days after the law takes effect .