Two of the nation's largest companies operating private jails are reporting spikes in revenue thanks to the Trump administration's surge of immigrant arrests.
"We are very pleased with a strong second quarter result," said George Zoley, executive chairman of The GEO Group, during an earnings call with investors. He said contracts with Immigration and Customs Enforcement are providing unprecedented growth opportunities.
"This is a unique moment in our company's history," Zoley said.
The GEO Group and CoreCivic are providing bed space for thousands of detained immigrants awaiting deportation hearings. The arrests have overwhelmed jails run by federal and state governments.
ADDITIONAL REPORTING | 'Absolute hell hole': Private prisons set to house ICE detainees bring new set of problems
CoreCivic reports a 17% jump in revenue from ICE and has boosted projected earnings for the year by over $15 million.
"The first day after the election, stock prices jumped 30%, 40%, for CoreCivic and GEO," said Brett Burkhardt, associate professor of sociology at Oregon State University. "People who got in early on have made quite a bit of money in the last six months or so."
Both companies aim to tap into $45 billion included in President Trump's tax cut and spending law to nearly double immigrant detention space to 100,000 beds.
"That's a really dramatic change," Burkhardt said. "And I think that is where the private industry has room to grow."
The companies are working to reactivate idle detention centers including a 1,033-bed facility in Leavenworth, Kansas, owned by CoreCivic.
The city has sued to keep the jail empty, citing stories of overcrowding and understaffing from when the site housed federal inmates before closing in 2021 during the Biden administration.
IN CASE YOU MISSED IT | 'Alligator Alcatraz' 2.0: Second migrant detention center planned in Florida Everglades
A 2016 federal audit found higher rates of safety and security incidents at private jails, including assaults "both by inmates on other inmates and by inmates on staff."
ICE is using no-bid contracts to quickly expand the use of private jails but also limit accountability measures, said professor Michael Hallett, criminology professor at the University of North Florida.
"We don't know, for example, how much medical care the detainees are guaranteed," Hallett said. "Ultimately, it's a money-making business. Who are the inspectors and what sort of oversight will they be afforded? Those are all open questions right now."
