The Department of Homeland Security (DHS) has acquired the California City Detention Facility and the Otay Mesa Detention Center in California for $1.5 billion, the agency confirmed. The two facilities, sold by private prison company CoreCivic, are among the largest immigration detention centers in the state and will increase the federal government's capacity to detain and deport individuals.
The purchase was funded by a spending bill signed by President Donald Trump, which the DHS stated was intended to expand detention space to fulfill the president's objective of mass deportations. According to a DHS spokesperson, the federal ownership of these facilities is crucial for ICE's operations on the West Coast, particularly given California's sanctuary policies. These policies, the spokesperson noted, hinder ICE's ability to utilize private prisons for detaining migrants who are in the country illegally.
CoreCivic reported that it expects net proceeds of approximately $1.1 billion after taxes and transaction expenses. The company indicated it will continue to manage the facilities under existing contracts with ICE, though contract terms may be adjusted. The contract for the California City facility expires in August 2027, with the Otay Mesa contract set to expire in December 2029, including an option for a five-year extension.
CoreCivic stated that it is engaged in discussions with ICE regarding the potential sale of additional detention facilities. The company is also a provider of solutions for government partners, aiming to maintain balance sheet flexibility and shareholder value. The sale of these two facilities demonstrates the value of CoreCivic's real estate portfolio.
Currently, eight ICE detention facilities operate within California, collectively holding nearly 9,000 individuals. Both the California City and Otay Mesa facilities have previously faced lawsuits concerning allegations of mistreatment, which CoreCivic has denied.
In separate developments, House Homeland Security Committee Democrats recently held an unsanctioned field hearing to investigate an ICE detention facility in Newark, New Jersey, following recent disturbances. This action was described as a "shadow hearing" by congressional correspondent Bill Melugin, as the Democrats were unable to secure sanctioned hearings. Former Acting DHS Secretary Chad Wolf provided context, noting that the Delaney Hall facility operated under the Obama administration without similar complaints from Democrats.