DHS buys two California migrant detention centers for $1.5B to boost ICE deportation capacity

The Department of Homeland Security has acquired two migrant detention facilities in California in a $1.5 billion deal, the agency confirmed to INC News.

The transaction included the 2,560-bed California City Detention Facility and the 1,994-bed Otay Mesa Detention Center, among the largest immigration detention sites in California. The sale closed earlier this month, according to a statement from CoreCivic, the Tennessee-based private prison operator that previously owned the facilities.

DHS said the purchase was funded through President Donald Trump’s spending legislation signed last summer, as the administration moves ahead with efforts tied to the president’s mass deportation campaign.

“The Department of Homeland Security purchased the California City Detention Facility and the Otay Mesa Detention Center,” a DHS spokesperson told INC News. “This purchase was made possible by President Trump’s One Big Beautiful Bill that allowed ICE to expand detention space to fulfill the President’s promise of mass deportations.”

Otay Mesa Detention Center

The Department of Homeland Security bought two California migrant detention centers for $1.5 billion. (Getty Images)

Federal officials say the acquisitions give the government additional capacity to implement Trump’s immigration agenda while reducing dependence on private prison companies. DHS has argued that California’s sanctuary policies are designed to limit immigration authorities’ ability to use privately run facilities to detain migrants living in the U.S. illegally.

“Unlike in states like Florida and Oklahoma, ICE can not rely on local state and county partners for detention space in California,” the DHS spokesperson said. “The state’s sanctuary politicians continue to push legislation to outlaw or make private prisons financially infeasible. Now, with federal ownership of these detention centers, which are crucial to ICE’s detention network on the west coast, ICE retains the detention capacity needed to arrest, detain, and remove illegal aliens.”

CoreCivic said it expects net proceeds to be about $1.1 billion after income taxes and transaction expenses.

CoreCivic's Otay Mesa Detention Center

The sale of the 2,560-bed California City Detention Facility and the 1,994-bed Otay Mesa Detention Center closed earlier this month. (Getty Images)

“We are pleased with the sales of these two mission-critical facilities for the Company’s government partner, which demonstrates the value of the Company’s underlying real estate portfolio, while reflecting our role as a long-term, flexible solutions provider to government,” CoreCivic Chief Executive Patrick Swindle said in a statement.

“The sale of these facilities at what we believe is a fair valuation provides the Company with significant balance sheet flexibility and positions us well to grow the Company’s businesses and return value to its shareholders, while remaining a dependable partner for government,” he added.

The company said it expects 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.

Migrant detention center

CoreCivic said it expects net proceeds to be about $1.1 billion after income taxes and transaction expenses. (Getty Images)

The California City facility contract expires in August 2027 and the contract for the Otay Mesa facility, which is located in San Diego, expires in December 2029, with the option to extend for five more years.

CoreCivic said it is in discussions with ICE about potentially selling additional detention facilities, although it said those talks are in various stages and cannot provide assurances that those sales will happen.

Eight ICE detention facilities are currently operating in California and combine to hold nearly 9,000 people.

The newly purchased California City and Otay Mesa facilities have both faced lawsuits by detainees over alleged mistreatment. CoreCivic has denied those allegations.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Teen E-Bike Takeover Blocks Downtown Traffic, Sparks Charges - Internewscast Journal

Teen E-Bike Takeover Blocks Downtown Traffic, Sparks Charges

A large group of teenagers riding e-bikes brought disorder to a busy…
19 Cadets Hospitalized as Mystery Illness Hits DC-Area Academy - Internewscast Journal

19 Cadets Hospitalized as Mystery Illness Hits DC-Area Academy

At least 19 cadets at a military-style youth academy in the Washington,…
Berlin Pride attack believed to be an act of Islamic terror, suspect on the run: German minister

Why Was Berlin Attack Suspect Free Despite Alleged ISIS Ties?

German officials are facing urgent questions after a deadly attack near a…
Wife murdered alongside 6 kids accused killer husband of affair with younger intern in explosive online posts: report

Murdered Wife Found Dead With 6 Kids Had Accused Husband of Affair With Younger Intern: Report

A Michigan mother who was killed with her six children by her…
Gavin Newsom’s Homekey Program Expands Homeless Housing Into Upscale Los Angeles Neighborhoods - Internewscast Journal

Gavin Newsom’s Homekey Program Expands Homeless Housing Into Upscale Los Angeles Neighborhoods

Some of Los Angeles’ most desirable neighborhoods are now home to taxpayer-funded…
San Jose Baby Bust Leads U.S. as Families Flee Big Cities - Internewscast Journal

San Jose Baby Bust Leads U.S. as Families Flee Big Cities

America’s biggest cities are seeing fewer children in their neighborhoods, classrooms and…
Luigi Mangione returns to court for jury selection hearing after reported plea deal falls apart

Luigi Mangione Plea Talks Set Stage for Showdown in Brian Thompson Murder Case

Luigi Mangione’s defense slams plea deal reports, drops emotional distress claim Attorneys…
Photos of Bloody Knife and Key Evidence Shown as Lindsay Clancy Murder Trial Begins - Internewscast Journal

Photos of Bloody Knife and Key Evidence Shown as Lindsay Clancy Murder Trial Begins

Jurors on Monday were shown disturbing hospital images of Lindsay Clancy, including…
Lindsay Clancy Murder Trial: Ex-Husband’s Spiral Account Alarms Expert - Internewscast Journal

Lindsay Clancy Murder Trial: Ex-Husband’s Spiral Account Alarms Expert

If you or someone you know is having thoughts of suicide, please…
Store clerk foiled ex-Navy SEAL's explosives plot targeting police at No Kings protest, feds say

Store Clerk Foiled Ex-Navy SEAL’s No Kings Explosives Plot

A former U.S. Navy SEAL has been convicted over a thwarted plan…
Rising Real Estate Broker, 29, Killed on Morning Jog in Hamptons - Internewscast Journal

Rising Real Estate Broker, 29, Killed on Morning Jog in Hamptons

A 29-year-old real estate broker with a growing career was killed while…
Mamdani Draws Fire Over Jewish Exclusion From Judicial Panel - Internewscast Journal

Mamdani Draws Fire Over Jewish Exclusion From Judicial Panel

Jewish legal groups are criticizing New York City Mayor Zohran Mamdani after…