New York City is weighing a dramatic break with federal immigration enforcement, as Council Member Shekar Krishnan pushes a bill that would effectively cut off the city’s business ties with ICE and related federal agencies.
The legislation would bar New York City from entering into or continuing contracts with federal immigration enforcement agencies, a move that could sever city ties to private vendors whose work supports ICE and Department of Homeland Security operations. It targets any city agreement that provides goods, services or facilities to immigration enforcement in return for payment and would apply to active contracts, not just future deals. The idea has already grabbed the attention of advocates, auditors and City Hall officials who are now picking apart the procurement and privacy fallout.
What the bill would do
Filed as Intro. 261-2026, the proposal would prohibit the city from contracting with entities that “engage in immigration enforcement” and, according to the NYC Council legislative database, would reach existing agreements rather than only deals going forward. The bill defines covered activity to include efforts that penalize a person’s presence, entry or reentry into the United States and would stop the city from providing paid goods or services that support those enforcement functions.
Private vendors in the crosshairs
Advocacy groups and investigative reporting have spotlighted technology firms, data brokers and corrections vendors that supply software, data and services used by federal immigration authorities. Documented has detailed Palantir’s ImmigrationOS work for DHS and ICE, and other coverage has highlighted companies that feed information into enforcement workflows. As reported by PIX11, that reporting shows multiple private companies maintain active contracts that intersect with ICE and city agencies.
Comptroller and mayor ratchet up scrutiny
City watchdogs are stepping in. New York City Comptroller Mark Levine asked Palantir’s board to commission an independent human-rights risk assessment of the company’s work with DHS and ICE, arguing the review is needed to protect pension fund interests. On the executive side, Mayor Zohran Mamdani issued Executive Order No. 13 in February directing city agencies to audit policies governing interactions with non-city law enforcement and to restrict non-city use of certain city property unless a warrant or formal agreement is presented. Together, those moves set the policy stage for the Council bill and signal that multiple branches of city government are zeroing in on the same issue.
What happens next
Intro. 261 was filed on Jan. 29, 2026 and is now before the Council’s Committee on Immigration. The measure must clear that committee before it can head to a full Council vote. PIX11 reported the bill could be brought to the Council floor during the week of March 9, 2026, setting up a potentially heated debate over procurement rules and vendor relationships at City Hall.
Why it matters
If passed, the law would force agencies to reexamine procurement relationships and could require the city to renegotiate or terminate contracts that officials determine support federal immigration enforcement. Supporters argue the change would prevent city resources from being used in deportation operations. Opponents warn that, in practice, the city will have to untangle a knot of technical, legal and service-continuity issues as contracts are scrutinized one by one.
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