A federal appeals court overturned a New Jersey law that blocked private immigration detention centers, citing interference with federal immigration powers.

A New Jersey law that prohibits contracts for U.S. Immigration and Customs Enforcement detention centers is unconstitutional because it regulates the federal government, a federal appeals court ruled Tuesday.

(CN) — New Jersey cannot ban private prison companies from housing immigrants for U.S. Immigration and Customs Enforcement, a Third Circuit panel ruled Tuesday. The court’s decision invalidates AB 5207, a New Jersey law passed in 2021 banning new contracts for detainment facilities holding people with civil immigration violations.