Detention Inc: A Private Industry of Immigrant Detention Centers

Detention Inc: A Private Industry of Immigrant Detention Centers

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How the Private Immigration Detention Industry Functions and Thrives in the US

By Tazreena Sajjad, PhD and Jack Spehn

The United States is home to the oldest and largest immigration detention system in North America and arguably, in the world. As of June 24, 2025, approximately 59,000 immigrants are being detained across the country under the jurisdiction of Immigration and Customs Enforcement (ICE), the federal agency responsible for enforcing immigration law within the United States, with roughly 46,000 being detained on an average day since January 26. These numbers, significant as they are, are still notably below the Trump administration’s April claim that the government had “surpassed the entirety of Fiscal Year 2024” in immigration enforcement, with over 151,000 arrests and 135,000 deportations. As of late June, ICE’s detention level is at over 140% capacity.

Furthermore, despite the claims that these arrests —and even the most recent travel ban on 19 countries and counting— are a response to a dangerous invasion and a threat to the US, there is little empirical evidence to suggest that the vast number of detained immigrants present a “clear and present danger” to either US national security interests or to the American public. In fact, approximately 47%  of those currently detained by ICE lack a criminal record, and less than 30% have been convicted of crimes that constitute minor offenses, including traffic violations. Meanwhile, the immigration detention business is only slated to expand – the new budget (OBBBA) approved by Congressional Republicans has allocated $45 billion for the construction of new immigrant detention centers alone, including facilities for family detention.

 A growing number of immigrants are being incarcerated in the US in the private immigration detention industry, on which the US government increasingly relies for immigration enforcement. In recent years, it is estimated that as many as 90% of ICE detainees in the US have been incarcerated in facilities operated by private immigration detention companies. 

The discussion below provides an overview of the US immigration detention system’s growing reliance on the private sector, the extent to which these companies continue to derive enormous profits from immigration imprisonment, and how they navigate the US political landscape. Despite widespread allegations and documentation of abuse in these private detention centers, the industry continues to generate significant profits and thrive on support from different public and private actors.

Understanding US Immigration Detention 

In the US, immigration detention refers to the federal government’s ongoing practice of confining individuals in a range of facilities for violating immigration law. Confinement may last the duration of an individual’s immigration proceedings and, in certain situations, even after their immigration proceedings have been completed. While lacking a current immigration status is a civil violation and immigration detention under the law should be “nonpunitive and preventative,” many of its aspects are indiscernible from criminal incarceration. Detained immigrants are incarcerated in prisons and prison-like facilities; required to wear government-issued uniforms and wristbands with identifying information at all times; and have highly regimented lives under constant surveillance. Detainees are also subjected to discipline and segregation, with very limited access or contact with the world outside. Furthermore, immigrant detainees do not receive the same legal protections as criminal defendants, i.e., they do not have the right to government-appointed counsel. They also do not have the privilege against self-incrimination, the right to a speedy trial, nor are they protected from the ban on cruel and unusual punishment.

Over the past several decades, changes in the federal immigration enforcement policy paved the way for an expansive rise in detention rates. For instance, in 1973, the U.S. government detained a daily average of 2,370 migrants and increased to 5,532 by 1994. By 2009, the numbers had surged to 34,000; by 2019, the numbers had risen to a record 55,000.

Chart: Austin Kocher Source: ICE Get the data Embed Download image Created with Datawrapper

Chart: Austin Kocher Source: ICE Get the data Embed Download image Created with Datawrapper

What is clearly notable in these numbers is that since the 1990s, the US immigration policy has relied extensively on detention as a primary means of immigration enforcement. The 1988 Anti-Drug Abuse Act and the 1994 Violent Crime Control and Law Enforcement Act increased the incarceration of  U.S. citizens, particularly the Black population. In addition, the 1996 enactment of the Antiterrorism and Effective Death Penalty Act (AEDPA) and the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) ushered in a new era of U.S. immigration detention. Succinctly, these two latter laws not only broadened the types of criminal offenses that could trigger removal proceedings but also expanded the categories of noncitizens — including legal permanent residents — who could be detained without the possibility of release pending the completion of their removal proceedings, and even be subjected to deportation.

Following 9/11, immigration transformed into a national security concern, evidenced by the US Patriot Act, conflating terrorism with the arrival of people at US shores, while drawing on long-standing anti-immigrant sentiments and rhetoric. Under President George W. Bush, the immigration system underwent dramatic changes with Immigration Naturalization Service (INS) being replaced by the U.S. Citizenship and Immigration Service (USCIS), Immigration and Customs Enforcement (ICE), Customs and Border Protection (CBP), and the creation of the Department of Homeland Security (DHS), which housed all these agencies. DHS’ 2003 Operation Endgame used ICE to detain and deport all “removable aliens by 2012” –possibly the largest police operation in US history– was particularly instrumental in expanding immigration detention and deportation. During Obama’s presidency, the implementation of the detention bed quota (later removed in 2017) and the expansion of deportation programs such as the Secure Communities and the Criminal Alien Program resulted in thousands of immigrants being incarcerated in detention centers. Following the significant number of Central American arrivals in 2014, immigration detention —particularly family detention— expanded further.

Under the first Trump administration, the deportation dragnet became more extensive with increasing number of 278 g agreements – which allow for state and local law enforcement to work collaboratively for “protecting the homeland” – subsequent community raids, elimination of policies that prioritized detention and deportation of “criminal immigrants,” mandatory detention, and a skyrocketing detention budget that produced a growing system of mass incarceration. In FY 2019 alone, the detention system held more than 500,000 immigrants.

President Biden further funded the increase in the number of detention beds, broadened the 287(g) program, and pursued new and expanded detention facility contracts. Biden’s 2021 executive order directing the Department of Justice to phase out its contracts with private prison companies did include ICE contracts, since the agency is part of the Department of Homeland Security. Indeed, at the beginning of Biden’s presidency, there were fewer than 15,000 in ICE detention, yet the FY2024 spending bill he signed just a few years later provided funding to detain a daily average of 41,500 immigrants. While years of local organizing to end ICE contracts bore fruit along with the growth of pro-immigrant state legislation in multiple places like Irwin County, Georgia, the pipeline to detention has consequently grown, largely as a result of arrested migrants funneled through border apprehensions.

The Private Immigration Detention Industry: Growth and Expansion

The private detention industry plays a critical role in enabling immigration detention in the US. In August 2023, the American Civil Liberties Union (ACLU) reported that more than 9 out of 10 immigrant detainees were held in private prison facilities. Such corporations argue that private prisons are important in immigration management due to their cost-effectiveness, increased safety, and the humane treatment of inmates. In particular, GEO Group and CoreCivic (formerly the Corrections Corporation of America) are two companies responsible for the largest number of private immigration detention facilities in the country. Since the early 1980s, both companies have played a significant role in dominating the private prison industry to satisfy the growing demand for prisons. With the shrinking of the prison population in recent years, GEO Group and CoreCivic adapted their prison facilities to incarcerate noncriminal immigrants in the civil immigration system. In 2020, CoreCivic and GEO Group held half of all ICE detainees while bringing in billions of dollars in revenue through ICE detention contracts. As of December 31, 2024, CoreCivic operated 69 correctional, detention, and reentry facilities domestically, with a total capacity of roughly 76,000 beds. As of the same date, the GEO Group operated 99 facilities worldwide in 2024, with a total capacity of approximately 79,000 beds, the majority of which are located in the US.

The use of private immigration detention companies is by no means limited to Republican administrations; Democratic administrations have also increasingly relied on this industry for immigration enforcement. In fact, in July 2023, more than 90 percent of the average 30,000 people held daily in ICE detention were housed in private facilities.

The profit margins of the most prominent private detention centers have also been notable. From 2000 to 2020, the combined annual revenue of just the GEO Group and CoreCivic rose from well under half a billion dollars to around $4.5 billion. In 2022, GEO Group, which operates internationally as well as domestically, had $1.05 billion in revenue —43.9% of its total revenue from ICE contracts alone. This included $408 million, a significant 17%, on programs involving electronic monitoring of immigrants. In the same year, CoreCivic made $552.2 million (i.e., 30% of its total revenue) from ICE detention contracts. For FY 2023, the US Congress also appropriated $2.9 billion dollars to hold 34,000 people in ICE detention each day.

In 2024, CoreCivic reported a total revenue of $2 billion, up from $1.9 billion in 2023. A little over $1 billion came from federal contracts. Revenues from ICE  totaled $564.8 million in 2024, and $565.5 million in 2023. Meanwhile, GEO Group reported consolidated revenues of roughly $2.4 billion in 2024, 91% of which came from domestic contracts. ICE accounted for 41.5% of the company’s total 2024 revenues.

Both CoreCivic and GEO Group state plainly that their ability to grow is dependent on their ability to secure contracts to develop and manage new facilities. In turn, ICE has a heavy reliance on these private companies and their subcontractors.

Photograph of a CoreCivic Detention Center by Patrick Feller. Retrieved from Flickr.

Photograph of a CoreCivic Detention Center by Patrick Feller. Retrieved from Flickr.

The second Trump administration, with its overt commitment to an anti-immigrant agenda and increase in detention and deportations, has continued to be a boon for the private immigration detention industry. ICE plans to spend as much as $45 billion over the next two years on immigration detention. CoreCivic, in its end-of-2024 financial disclosures, stated “[we] expect demand from the federal government for our correctional and detention facilities to increase under the new presidential administration, particularly from ICE, as a result of anticipated changes in immigration policy.” Meanwhile, GEO Group said, “[we] continue to be encouraged by the current landscape of growth opportunities” and are “preparing for what we believe is an unprecedented opportunity…” Their excitement is evidently shared by their investors; both companies’ stock prices increased dramatically in the aftermath of the November 2024 election and remain well above their average pre-election value.

Questions for the Private Immigration Industry

The U.S. private immigration detention industry —like the private prison industrial complex— has long thrived based on the argument that its existence is necessary to reduce the costs of incarceration to state and federal correctional agencies and the burden on taxpayers. In fact, privatized companies have cut corners, such as reducing basic facilities for detainees and cutting back on their wages, in order to deliver on their promise of cutting government costs while maximizing profits for their shareholders.

While these measures may deliver in the short run, existing research shows they are far more likely to be more expensive in the long run. In addition to the reduction of services and reduced wages that negatively impact imprisoned immigrants, the U.S. immigration detention has long continued to be subject to intense scrutiny for human rights abuses, including verbal and physical assault, sexual harassment, insufficient food and nutrition provision, mistreatment of marginalized communities, insufficient access to medical care, negligence, lack of transparency and accountability alleged by many detainees. In May 2024, a group of U.S. Senators wrote to the Department of Homeland Security and ICE about “well-documented horrific conditions, such as ‘yellow drinking water,’ forced sleep deprivation, prolonged solitary confinement, inadequate medical care, limited access to legal counsel, and violent retaliation against those who complain.” A joint report by the ACLU, Physicians for Human Rights, and American Oversight found that 49 out of 52 deaths during detention ICE reported between January 2017 and December 2021 were “preventable or possibly preventable if appropriate medical care had been provided.” In certain cases reviewed in the report, medical staff vacancies and other health care deficiencies were found to have contributed to deaths. Groups such as Human Rights Watch have also documented multiple instances of substandard medical practices, including “unreasonable delays, poor practitioner and nursing care, and botched emergency response,” contributing to deaths in both publicly- and privately-operated facilities. Government oversight and regulatory bodies have consistently failed to anticipate, mitigate, identify, and rectify the conditions that enable such abuses. 

Private Immigration Detention Companies’ Successful Navigation of Criticisms

During President Obama’s time in office, the 2016 Inspector General report led to a directive to phase out private prisons, causing the stocks of private detention firms to tumble. However, this trend did not translate into significant economic damage for the private immigration detention industry or dampen enthusiasm for its existence. Instead, companies such as Geo Group and Core Civic, continued to develop and expand their public lobby efforts, including making donations to political campaigns. CoreCivic spent $3.7 million in lobbying throughout 2014 and 2015, with nearly $2 million in additional political donations. During Trump’s first presidential run for office, GEO Group donated US$100,000 to his 2016 campaign, and CoreCivic made large contributions to support his inaugural activities. Following President Trump’s 2016 electoral win, both firms’ stocks soared. Soon after, Trump’s Attorney General Jeff Sessions rescinded the Obama directive, citing concern that it would impair “the Bureau’s ability to meet the future needs of the federal correctional system.” In 2017, Texas State Representative John Raney told the Associated Press that a GEO Group lobbyist directly authored legislation that sought to lower childcare standards for private detention centers and extend the amount of time immigrant children could be detained.

Political contributions and lobbying funds remained high throughout the Biden administration. In 2022, GEO Group reported spending more than $4 million on political contributions and $3.1 million on lobbying expenditures, while CoreCivic cited more than $1 million in political contributions and $2.2 million in lobbying fees. Existing research suggests a possible connection between the political contributions made by these companies and their sponsorship of legislation in Congress that benefits the private detention industry. Their methods of influence can also take less overt forms. For example, the contracts these companies sign with governments often include “mandatory minimum” provisions, which guarantee payment for a set number of beds and thus create a financial incentive for governments to fill these spaces. A January 2021 review by the Government Accountability Office (GAO) found that “ICE has increasingly incorporated guaranteed minimum payments into its contracts and agreements … [but] has not taken a strategic approach to these decisions and has spent millions of dollars a month on unused detention space. Some immigrant rights groups have argued that this creates a waste of resources and a financial incentive to keep more immigrants detained within private facilities.

In 2023 alone, CoreCivic reported $983,250 in total political contributions and approximately $2 million in total direct lobbying expenditures at the federal, state, and local levels. In February 2025, GEO Group, along with its associated political action committee, reported a total of $4.02 million in political contributions alongside $3.97 million in direct lobbying expenditures. The company states that their efforts “are focused on promoting the benefits of public-private partnerships in the delivery of support services for secure facilities and processing centers…”, but that they “have not advocated for or against … criminal justice or immigration enforcement policies, such as whether to criminalize behavior, the length of criminal sentences, or the basis for or length of an individual’s incarceration or detention.” CoreCivic also reported donating half a million dollars to the Trump-Vance inaugural committee in December 2024. CoreCivic states that its lobbying efforts are “designed to educate” government officials about “the benefits of partnership corrections”, and that they avoid advocating “for or against policies or legislation that would determine the basis for or duration of an individual’s incarceration or detention.” 

Conclusion

The United States’ growing reliance on the private immigration detention industry has little to do with the country’s national security interests or protecting the American public; but it has consistently been about maximizing the profit margin through the imprisonment of some immigrants with criminal records, but many undocumented immigrants, asylum-seekers, and even lawful permanent residents. Existing research has repeatedly underscored that the private immigration detention system is costly and unsafe, and in several instances, in violation of U.S. and international human rights laws. Yet, the system persists, bolstered by both Democratic and Republican administrations. Under President Trump’s second term, the anti-immigrant agenda has ushered in a time of even more ICE raids, detention, deportation, violent family separations, and human rights violations. All of this leads to a more extensive reliance on private detention centers, which stand to benefit financially from these incarcerations, so much so that CoreCivic’s CEO Damon Hininger describes the present times as “truly one of the most exciting periods in my career.”

For more you can listen to Nancy Hiemstra and Deirdre Conlon, and Austin Kocher ICE Detention Numbers Explained

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