The Department of Homeland Security (DHS) has finalized the purchase of two migrant detention centers in California for $1.5 billion. The facilities, which have a combined total of 4,554 beds, were sold by private prison company CoreCivic to the federal government.
The sale of the California City Detention Facility and the Otay Mesa Detention Center closed earlier this month, following a press release from CoreCivic. The DHS used funds from a spending bill signed by President Donald Trump last summer to make the purchase.
The DHS spokesperson stated that the purchase was made possible by the president's spending bill and will equip the federal government with more resources to carry out Trump's immigration policies without relying on private prison companies. The spokesperson also noted that California's so-called sanctuary policies attempt to block immigration officials from using private prisons to hold migrants living in the country illegally.
The federal government's acquisition of the detention centers will allow ICE to retain the detention capacity needed to arrest, detain, and remove illegal aliens. Unlike in other states, ICE cannot rely on local state and county partners for detention space in California, and the state's sanctuary politicians continue to push legislation to outlaw or make private prisons financially infeasible.
CoreCivic expects net proceeds to be about $1.1 billion after income taxes and transaction expenses. The company plans to continue managing the two facilities under existing management contracts with Immigration and Customs Enforcement, although the terms of the management contracts could be modified to reflect the change in ownership.
The California City facility contract expires in August 2027, while the Otay Mesa facility contract, located in San Diego, expires in December 2029, with the option to extend for five more years. CoreCivic is also in discussions with ICE about potentially selling additional detention facilities, although the company cannot provide assurances that those sales will happen.
