ICE Out of Our Faces Act
Summary
HR 7363, the 'ICE Out of Our Faces Act', is an early-stage bill prohibiting DHS immigration enforcement from using facial recognition and biometric surveillance. It is in the earliest legislative phase (referred to subcommittee) with no funding authorization, minimal passage probability given its cosponsor count and lack of committee leadership support. Market impact is negligible for most companies; Axon has a tiny bearish exposure to the extent their biometric software sells to immigration agencies.
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Key Takeaways
- 1.HR 7363 is an early-stage bill with low passage probability; no funding is authorized.
- 2.Axon Enterprise ($AXON) faces a mild bearish risk from potential biometric software sales to immigration agencies, but this is a tiny revenue fraction.
- 3.No major market shifts expected; the bill is largely symbolic at this point.
Market Implications
The bill has no near-term market implications. If passed, it would create a regulatory barrier for any biometric surveillance vendor selling to immigration enforcement, but passage probability is low. Axon ($AXON) has a small bearish exposure but not material enough to change investment theses. No other public companies face significant impact.
⚡ Government Convergence
Active government convergence in this signal’s sector right now.
Over the last 90 days, 169 separate government actions have converged on Border / Immigration Enforcement. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 123 federal contracts, 23 procurement notices, 15 bills and 8 executive actions — it's the clearest early tell that Washington is committing to border / immigration enforcement, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- BillMichel O. Maceda Memorial Act · 2024-12-11
- BillA bill to expand the sharing of information with respect to suspected violations of intellectual property rights in trade. · 2025-08-01
- ContractBARNARD SPENCER JOINT VENTURE: $634M Department of Homeland Security Contract · 2025-09-19
- ContractFISHER SAND & GRAVEL CO: $2.8B Department of Homeland Security Contract · 2025-12-17
- ContractSPENCER CONSTRUCTION LLC: $1.1B Department of Homeland Security Contract · 2026-03-18
- ContractBARNARD CONSTRUCTION COMPANY, INCORPORATED: BORDER WALL CONSTRUCTION FOR EL PASO SECTOR - EPT-5 · 2026-04-24
- ContractSOUTHWEST VALLEY CONSTRUCTORS CO: $1.7B Department of Homeland Security Contract · 2026-05-11
- ContractSLS FEDERAL SERVICES LLC: $1.3B Department of Homeland Security Contract · 2026-06-26
- Executive actionProclamation: Excluding Certain Canadian Products from Importation into the United States in Response to Continued Discrimination Against the Commerce of the United States with Respect to Dairy · 2026-09-08
- Executive actionProclamation: Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages · 2026-09-08
- Executive actionProclamation: Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the United States with Respect to Motor Vehicles · 2026-09-08
- BillProviding for consideration of the bill (H.R. 4393) to secure the border and reform the immigration laws. · 2026-09-17
- ContractWIDEPOINT INTEGRATED SOLUTIONS CORP: $23.2M Department of Homeland Security Contract · 2026-09-18
- ContractGRANITE CONSTRUCTION COMPANY: $199M Department of Homeland Security Contract · 2026-09-18
Full Analysis
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On February 4, 2026, Representative Pramila Jayapal (D-WA) introduced HR 7363, titled the 'ICE Out of Our Faces Act.' The bill was referred to the Judiciary and Homeland Security Committees and subsequently to the Subcommittee on Border Security and Enforcement. It is in the earliest stage of the legislative process with no hearings or markups scheduled. The bill has 9 cosponsors, all presumably Democrats, and lacks any Republican support or chair sponsorship, indicating very low passage probability in the Republican-controlled 119th Congress. A companion bill (S3779) exists in the Senate but similarly is early-stage.
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This is a prohibition bill, not an authorization or appropriation bill. It contains no funding provisions. It would restrict the use of existing funds rather than allocate new money. As such, the congressional budget impact is effectively zero. The financial effect on the private sector is limited to any companies selling biometric surveillance systems specifically to DHS immigration enforcement agencies (CBP and ICE).
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There are no related market signals, other legislation, or federal procurement actions in the provided data that converge with this bill. The bill stands alone and is not part of a broader regulatory wave. The administration's stance on facial recognition is not specified, and no presidential action or executive order is provided for context.
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The only clearly affected public company is Axon Enterprise ($AXON), which sells body cameras and accompanying cloud-based biometric software to law enforcement. Axon has contracts with CBP and ICE for body cameras and cloud evidence services. While the core camera hardware and basic evidence storage are not restricted, the bill would ban immigration agencies from using Axon's facial recognition and AI analytics features. However, Axon's total revenue from immigration enforcement biometrics is a very small fraction of its ~$2 billion annual revenue. Companies like Clearview AI are private and not publicly traded. Large tech companies (MSFT, GOOGL, AMZN) offer facial recognition services through cloud platforms but their exposure to DHS immigration enforcement is minimal relative to their total revenue; the bill would not materially impact them.
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The bill faces a long and uncertain path: referral to subcommittee, possible hearings, committee markups, House floor vote, Senate companion process, conference committee, and presidential signature or veto. Given the current partisan environment and lack of committee leadership support, the bill is unlikely to advance beyond subcommittee. No timeline is predictable.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
Prohibition on use of biometric surveillance systems, including facial recognition, by covered immigration officers under DHS (CBP, ICE, and 287(g) deputies).
Who must act
U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, and state/local law enforcement officers deputized under section 287(g) of the Immigration and Nationality Act.
What happens
DHS immigration enforcement agencies would be barred from procuring or deploying facial recognition and other biometric recognition systems (e.g., voice recognition, gait analysis) for immigration enforcement purposes. Current procurement contracts for such systems would become unusable for immigration enforcement missions.
Stock impact
Axon Enterprise ($AXON) supplies body cameras and cloud-based evidence management (Axon Evidence/Evidence.com) with integrated facial recognition and biometric analytics capabilities to U.S. law enforcement, including ICE and CBP. While Axon's core body camera and taser sales are not directly banned, their higher-margin biometric software add-ons (facial recognition, AI analytics) would face a demand reduction from immigration enforcement customers. As immigration enforcement represents a small segment of Axon's total law enforcement client base (primarily municipal and state police), the revenue impact is minimal, but the bill signals a regulatory headwind for expansion of biometric features into federal immigration agencies.
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
CSI AVIATION, INC: $1.3B Department of Homeland Security Contract
CSI AVIATION, INC: $1.2B Department of Homeland Security Contract
FISHER SAND & GRAVEL CO: $1.8B Department of Homeland Security Contract
CSI AVIATION, INC: $1.3B Department of Homeland Security Contract
SLS FEDERAL SERVICES LLC: $1.3B Department of Homeland Security Contract
SLS FEDERAL SERVICES LLC: $1.3B Department of Homeland Security Contract
GRANITE CONSTRUCTION COMPANY: $515M Department of Homeland Security Contract
BCCG A JOINT VENTURE: $874M Department of Homeland Security Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Enhancing Program Integrity and Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program
This executive order directs the Secretaries of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the SBA when processing H-1B petitions, and requires them to consider whether the employer has engaged in layoffs of similarly situated U.S. workers within the past year. It also orders the Labor Department to review past labor condition applications for potential enforcement actions against sponsoring employers, effectively tightening scrutiny on H-1B usage, especially by outsourcing firms.
Restriction on Entry of Certain Nonimmigrant Workers
This proclamation extends for an additional 12 months the existing restriction on entry of H-1B nonimmigrant workers, which requires a $100,000 payment per petition (with limited exceptions) and is supported by a DHS weighted selection process that prioritizes higher-skilled, higher-paid workers. The action continues to target IT staffing and outsourcing firms that have abused the program, and it maintains the requirement for ongoing rulemakings by DHS and DOL to further reform wage protections and program integrity.
RESTORING AMERICAN SALTWATER ANGLING AND RECREATION
This executive order directs federal agencies (primarily NOAA and the Department of Commerce) to shift fisheries management toward prioritizing recreational fishing over commercial interests by modernizing data collection, replacing outdated mail-in surveys with real-time mobile reporting, and allowing state-collected data to substitute for federal data when error rates are lower. It also mandates reviewing and potentially revising National Standards under the Magnuson-Stevens Act, rescinding regulations that restrict marine access, and launching pilot programs for iconic fisheries like Atlantic striped bass, with the goal of boosting the $1.2 trillion outdoor recreation sector.
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