DHS buys two California ICE detention centers for $1.5B

The Department of Homeland Security has purchased two of California’s largest immigration detention centers from the private prison company CoreCivic for $1.5 billion, a move critics say is intended to shield the facilities from state oversight. The sale of the California City Detention Facility and the Otay Mesa Detention Center was completed on July 2, according to the company’s announcement on Monday.

CoreCivic will continue to manage both facilities under existing contracts with U.S. Immigration and Customs Enforcement, meaning the company will still generate income from their operation. The California City contract is valued at approximately $130 million annually and expires in August 2027, while the Otay Mesa contract expires in December 2029 with an option for a five-year extension.

The purchase marks a strategic shift toward federal ownership. An ICE spokesperson stated the acquisition was necessary to retain detention capacity on the West Coast, arguing that California politicians have pushed legislation to outlaw or financially undermine private prisons. Critics, however, contend the primary motive is to evade stringent state oversight laws. California requires...