CoreCivic Sells 2 California ICE Centers to DHS for $1.5 Billion, Keeps Operating Them
Updated
Updated · CalMatters · Jul 7
CoreCivic Sells 2 California ICE Centers to DHS for $1.5 Billion, Keeps Operating Them
3 articles · Updated · CalMatters · Jul 7
Summary
$1.5 billion bought DHS two of California’s largest immigration detention sites—Otay Mesa and California City—in a July 2 deal that gives CoreCivic about $1.1 billion in net proceeds.
4,554 beds are covered by the sale, but CoreCivic said it expects to keep running both facilities for ICE under existing contracts that could still be renegotiated or allowed to expire.
$170 billion in 2025 immigration enforcement funding, including $45 billion for detention expansion through 2029, is helping DHS buy facilities outright as it builds capacity less dependent on private prison landlords.
California scrutiny remains: Otay Mesa is in a court fight over county health inspections, and California City faces a lawsuit and permit challenge over whether it opened lawfully.
CoreCivic said it is discussing additional facility sales with ICE, while critics argue the arrangement makes detention more permanent by letting the company cash out on property and keep operating the centers.