Additional Coverage:
- DHS buys two California migrant detention centers for $1.5B to boost ICE deportation capacity (foxnews.com)
The Department of Homeland Security (DHS) has completed the acquisition of two major migrant detention centers in California, confirming a $1.5 billion purchase from private prison operator CoreCivic. The facilities involved are the California City Detention Facility, which has a capacity of 2,560 beds, and the Otay Mesa Detention Center in San Diego, with 1,994 beds.
The transaction closed earlier this month, according to a statement from CoreCivic, a Tennessee-based company that previously owned and operated the centers. DHS noted that the purchase was funded through legislation passed last summer under the Trump administration, aimed at expanding detention capacity to support increased immigration enforcement efforts.
A DHS spokesperson explained that owning these facilities directly allows Immigration and Customs Enforcement (ICE) to maintain essential detention space on the West Coast, particularly given California’s sanctuary policies. These policies restrict the use of private prisons for migrant detention and limit collaboration with state and local partners, unlike states such as Florida and Oklahoma, where ICE relies more heavily on local detention resources.
“Federal ownership of these key detention centers ensures ICE can continue to detain and remove individuals unlawfully present in the country,” the spokesperson said.
CoreCivic anticipates net proceeds of approximately $1.1 billion after accounting for taxes and transaction costs. CEO Patrick Swindell expressed satisfaction with the sale, highlighting it as a reflection of the value of the company’s real estate holdings and its ongoing commitment to providing flexible government solutions. CoreCivic also indicated that it expects to continue managing the facilities under existing contracts with ICE, although contract terms may be revised following the change in ownership.
The California City contract runs through August 2027, while the Otay Mesa agreement extends until December 2029, with an option to renew for an additional five years. CoreCivic is currently in discussions with ICE about potential sales of other detention centers but has not confirmed any further transactions.
Together, the eight ICE detention centers operating across California hold close to 9,000 detainees. Both the California City and Otay Mesa facilities have previously been the subject of lawsuits alleging detainee mistreatment, allegations that CoreCivic has denied.
This acquisition represents a strategic move by DHS to strengthen its operational control over detention resources amid ongoing debates over immigration policy and enforcement practices in California.