Key facts
- CoreCivic sold two California immigrant detention centers to the U.S. Department of Homeland Security for $1.5 billion.
- The Otay Mesa Detention Center was sold for $739.2 million and the California City Detention Facility for $732.6 million.
- CoreCivic will continue to operate both facilities under existing management contracts with ICE.
- The federal government's acquisition is part of a strategy to expand immigration detention capacity and reduce reliance on private contractors.
- The purchases are funded by $45 billion allocated to ICE for expanding detention capacity.
CoreCivic, a private prison company, has sold two California immigrant detention facilities—the Otay Mesa Detention Center and the California City Detention Facility—to the U.S. Department of Homeland Security (DHS) for a combined $1.5 billion. The sale is expected to yield CoreCivic approximately $1.1 billion in net proceeds. CoreCivic will continue to manage the day-to-day operations of both facilities under existing contracts with U.S. Immigration and Customs Enforcement (ICE), though contract terms may be renegotiated. The acquisition aligns with the federal government's strategy to expand its immigration detention capacity and reduce reliance on major private prison contractors, a plan linked to President Donald Trump's deportation campaign. The DHS has secured substantial funding for this expansion, with $45 billion earmarked for detention capacity growth through fiscal year 2029. The federal government also plans to sell some recently acquired warehouses that did not meet federal standards, potentially incurring losses after paying above market rates for them.