Key facts
- DHS acquired two California detention centers for $1.5 billion.
- The California City Detention Facility was purchased for $732.6 million.
- The Otay Mesa Detention Center was purchased for $739.2 million.
- These facilities were sold by CoreCivic, which will continue to manage them.
- The purchases are part of a $38.3 billion initiative to support President Donald Trump's deportation campaign.
- DHS plans to sell previously acquired warehouses, some at a significant markup over assessed value.
The Department of Homeland Security (DHS) has acquired two detention facilities in California for a total of $1.5 billion. The California City Detention Facility, with a capacity of 2,560 beds, was purchased for $732.6 million, while the 1,994-bed Otay Mesa Detention Center cost $739.2 million. These acquisitions represent a shift in strategy for DHS, moving from purchasing vacant warehouses to buying existing facilities from private prison companies like CoreCivic, one of the largest prison operators in the U.S.
These purchases are part of a larger $38.3 billion initiative aimed at creating the necessary infrastructure for President Donald Trump's expanded deportation efforts. CoreCivic will continue to manage the newly acquired facilities under existing contracts with Immigration and Customs Enforcement (ICE). DHS plans to sell some of the warehouses it recently acquired, many of which reportedly did not meet federal standards and were purchased at significant markups over their assessed value, potentially leading to steep losses for the government.
The funding for these detention center expansions comes from a $45 billion allocation to ICE provided by the One Big Beautiful Bill Act, signed into law last year. A DHS memo published in February indicated plans to purchase 10 additional "turnkey" facilities already in use for immigrant detention. Meanwhile, ICE has listed approximately $293 million worth of warehouses for sale, with at least two projects paused due to court challenges.