Market reaction
Stocks of companies that operate immigration detention centers declined sharply on Friday after a report said Immigration and Customs Enforcement intends to significantly pare back its use of privately run facilities. GEO Group's shares fell 16% and CoreCivic's shares dropped 11% during trading, reflecting investor concern over the potential contraction in the private-detention footprint.
What was reported
According to Bloomberg, ICE is planning to shrink its current network of more than 200 detention facilities to a core of 34 sites that would be government-owned, based on accounts from local officials who were briefed this week on the plan. The report notes that the majority of people in ICE custody are currently housed in facilities operated by GEO or CoreCivic.
How the system would change
The reported plan would replace the existing patchwork of local jails and privately run prisons with a centralized system of larger facilities. Most of those sites are described as industrial warehouses and would be owned by the Department of Homeland Security. The intent, as reported, is to move toward a smaller number of larger, DHS-owned locations.
Local briefing and confirmation
Officials in Social Circle, Georgia - including Mayor David Keener, City Manager Eric Taylor and City Attorney Jay Crowley - said they were told about the 34-facility plan during a meeting this week with a DHS delegation. That delegation was led by Tim Kaiser, who serves as deputy chief of staff at U.S. Citizenship and Immigration Services. A person familiar with the administration's plan confirmed that ICE will rely primarily on government-owned facilities going forward, while private companies would still have a role, potentially providing services such as medical care and security.
Contracting activity
The report also indicates that rival private companies are already competing for contracts to convert and operate the warehouses that DHS has purchased. That suggests that while the ownership model would shift toward government-held sites, private firms could remain involved as service providers.
Official response
The Department of Homeland Security did not immediately respond to a request for comment on the details that were shared in the meeting, according to the report.
Note: The information above reflects the details reported and does not add or infer facts beyond that reporting.