Private prison companies stand to benefit significantly from a sweeping new plan proposed by the Trump administration to overhaul the U.S. immigrant detention system.
According to a request for proposals (RFP) posted online last week, Immigration and Customs Enforcement (ICE) is calling for contractors to submit proposals to provide new detention facilities, transportation, security guards, medical support and other administrative services worth as much as $45 billion over the next two years.
The proposal is structured as a blanket purchase agreement, allowing ICE to quickly scale operations as funding becomes available. The RFP does not yet have funding attached, but the administration is positioning itself to spend rapidly if Congress approves the broader GOP budget plan, which could allocate up to $175 billion over 10 years to immigration enforcement, as The New York Times points out.
The plan also invites the Defense Department to contribute its own funding, signaling a potential shift toward military involvement in immigrant detention.
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CoreCivic and GEO Group signed large, long-term contracts to reopen or expand detention centers shortly before the development.
In an investor call just days into the Trump administration taking office, CoreCivic's CEO, Damon Hininger stated that the company was in "daily communication" with the administration and doubled down on his praise for the administration:
"We are grateful for the trust our government partner has placed in us. We are entering a period when our government partners—particularly our federal government partners—are expected to have increased demand"
The proposed expansion comes amid ICE's ongoing budget shortfall. As reported by Axios in mid-March, the agency faces a nearly $2 billion gap for the current fiscal year. Congress has approved an additional $500 million, but that remains insufficient to meet ICE's operational goals. Some DHS officials have suggested reallocating funds from other agencies to cover costs.
Meanwhile, ICE facilities are operating at or above capacity. As of late March, the agency held nearly 48,000 individuals in custody—well over the 41,500 beds funded by Congress last year.
Overcrowding and budget pressures have already led to lower standards and reduced oversight in detention facilities. A report from Human Rights organizations last week denounced major human rights abuses in several detention centers in rural Louisiana run by Geo Group, with some describing the facilities as "a black hole," citing poor conditions, lack of medical care, and limited access to legal representation. GEO Group denies the allegations but acknowledged ongoing federal oversight to NBC News.
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