Private prison giant gets $1.5 billion from DHS, keeps running ICE centers

Source: The Independent

Wednesday 08 July 2026 05:13 EDT


Private prison operator CoreCivic has completed the $1.5 billion sale of two of California's largest immigration detention centers to the Department of Homeland Security, the company announced Monday. The deal, which closed July 2, is expected to generate about $1.1 billion in net proceeds for the Tennessee-based company.

DHS purchased the 1,994-bed Otay Mesa Detention Center in San Diego County for $739.2 million and the 2,560-bed California City Detention Facility in Kern County for $732.6 million, according to a filing with the Securities and Exchange Commission.

Despite the sale, CoreCivic expects to continue operating both facilities under existing contracts with U.S. Immigration and Customs Enforcement. Those agreements run through August 2027 for California City and December 2029 for Otay Mesa, although the company said the contracts could be renegotiated now that the federal government owns the properties.

The purchase comes as DHS receives a major funding boost. The 2025 federal budget includes about $170 billion for immigration enforcement and detention, including $45 billion to expand detention capacity through 2029.

Read more: https://www.the-independent.com/news/world/americas/corecivic-dhs-california-immigration-facilities-b3011019.html