Trump plans to expand immigrant detention boosts private prison companies: report
President Trump’s plan to establish more detention centers for undocumented immigrants will give a boost to private prison companies that backed Trump’s presidential campaign, The Wall Street Journal reported Tuesday.
CoreCivic and Geo Group both saw their shares spike last month after Immigration and Customs Enforcement (ICE) announced that it will likely add 15,000 new beds for families after Trump’s executive order to detain undocumented immigrant families together, according to the newspaper.
The Trump administration is also pushing to increase the number of beds for immigrants to 52,000 from 40,000, requesting $2.8 billion for the 2019 budget year to fund the effort.
Geo Group declined to comment to the Journal. The company’s CEO, George Zoley, said during an earnings call in April that he anticipated the possibility of new contracts “as the president will be asking for a significant increase in the detention bed capacity for ICE,” the outlet reported.
A CoreCivic spokesman told the Journal that the company is ready to address the administration’s changing needs.
The corporation’s CEO, Damon Hininger, said last month that “this is probably the most robust kind of sales environment we’ve seen in probably 10 years,” according to the Journal.
Both companies have relied on ICE for a significant chuck of their revenue in recent years, according to the Journal, which reported that the agency made up a quarter of CoreCivic’s revenue last year, up from 13 percent a decade earlier.
Geo Group experienced a similar rise, with ICE making up 24 percent of its recent from 10 percent in 2007.
Each of the companies donated $250,000 to Trump’s inauguration, and Geo Group last year held a leadership conference at one of Trump’s golf resorts in Florida.
The Hill has removed its comment section, as there are many other forums for readers to participate in the conversation. We invite you to join the discussion on Facebook and Twitter.