CoreCivic, Geo Group Could Get $1B In New Detention Center Contracts
Two publicly traded private prison operators that have been crucial to the Trump administration’s immigration crackdown could get another big boost.
The government agency tasked with detaining and deporting unauthorized immigrants, Immigration and Customs Enforcement, has been discussing plans to open roughly 125 new facilities this year, The Washington Post reported.
The new detention centers would add more than 107,000 beds for detained immigrants across the country. The road map would increase the number of states with more than 1,000 beds from 14 to 19 and would add more family detention centers as well as “soft-sided” facilities that can be both built and dismantled within weeks.
CoreCivic and The Geo Group, two of the companies that have been heavily used by current and past administrations to hold migrants, would get a billion-dollar boost, per a July 30 plan based on internal ICE documents obtained by the Post.
The road map, which isn't yet finalized and could still change, would amount to a doubling in annual revenues the two companies receive from the government agency.
The plan would set up CoreCivic to receive at least 12 ICE contracts worth more than $500M a year. Geo Group, ICE’s largest contractor, would receive nine new contracts worth more than $500M a year.
“We stay in regular contact with U.S. Immigration and Customs Enforcement and all our government partners to understand their changing needs, and we work within their established procurement processes,” Ryan Gustin, a senior director for public affairs at CoreCivic, said in a statement. “It is our policy to respect these processes.”
The U.S. Department of Homeland Security and U.S. Customs and Immigration Services did not immediately respond to Bisnow's request for comment, but a DHS spokesperson told the Post that the July 30 plan was outdated and that the contracts listed “are not accurate.” Geo Group didn't respond to a request for comment.
Texas already has the most beds in immigration detention prisons of any U.S. state at more than 18,000. The July 30 ICE road map would see that number increase to 37,649 beds by the end of 2025, the Post reported.
Other U.S. states and territories that could see a significant increase in the number of beds include Oklahoma, New Jersey, Minnesota and Puerto Rico.
Geo Group's stock price is up by 59% this year and rose by 2.4% Friday morning, while CoreCivic is up 64% on the year after rising 1.5% after The Washington Post’s story published.
In earnings calls at the start of this year, executives from both firms said that the Trump administration’s deportation agenda pointed to a period that may be the most lucrative in their histories.
“I've worked at CoreCivic for 32 years, and this is truly one of the most exciting periods in my career with the company,” CEO Damon Hininger said during a Feb. 10 earnings call.
CoreCivic and Geo Group aren't the only private prison companies that will likely get more business as the Trump administration continues to pursue its immigration agenda. As many as 41 companies could receive contracts, funded by a $45B budget specifically for detaining and deporting unauthorized migrants.
Earlier this month, quarterly earnings reports from both companies revealed that total revenues had grown. Geo Group’s quarter-over-quarter results showed a total revenue increase from $604.6M to $636.2M. Core Civic’s total revenues also jumped from $488.6M in Q1 to $538.2M in Q2.
