The Department of Homeland Security (DHS) has purchased two migrant detention centers in California for $1.5 billion. The acquisition includes the California City Detention Facility, which has a capacity of 2,560 beds, and the Otay Mesa Detention Center, with 1,994 beds. The sale was confirmed by CoreCivic, the private prison company that sold the facilities, and closed earlier this month.
DHS utilized funds from a spending bill signed by President Donald Trump to facilitate this purchase, which aims to expand the agency's capacity for deportations. A DHS spokesperson stated that the acquisition allows for the expansion of detention space, which is necessary for the enforcement of immigration policies.
The facilities will provide the federal government with more resources to implement these policies without reliance on private prison companies. The spokesperson noted that California's sanctuary policies limit the ability of Immigration and Customs Enforcement (ICE) to utilize local detention facilities.
CoreCivic anticipates net proceeds of approximately $1.1 billion after taxes and transaction costs from the sale. The company plans to continue managing the facilities under existing contracts with ICE, although these contracts may be adjusted due to the change in ownership.
The California City facility's contract is set to expire in August 2027, while the Otay Mesa facility's contract, located in San Diego, will expire in December 2029, with an option for a five-year extension. CoreCivic is also in discussions with ICE regarding the potential sale of additional detention facilities, although these discussions are at various stages.
Currently, eight ICE detention facilities operate in California, collectively holding nearly 9,000 individuals. Both the California City and Otay Mesa facilities have faced lawsuits from detainees alleging mistreatment, which CoreCivic has denied.