February 18, 2025–President Trump, who ran on a campaign of law-and-order and promises to focus on detaining immigrants who came to the country illegally, is already making big changes to the detention system. He reversed a Biden-administration executive order that blocked the Bureau of Prisons and U.S. Marshals Service from signing new contracts with private detention companies.
Private prison companies are taking notice and making capital investments in the expectation of winning federal contracts for detaining people.
“The new year is just underway, and the landscape is already changing in ways that are likely to positively impact our business,” said Damon Hininger, chief executive officer of CoreCivic. “As the new administration modifies immigration policy and enacts new legislation, we expect the demand for our services to grow.
Locking Them Up
The United States locks up more prisoners than any country in the world. In 2023, the total incarcerated topped 1.2 million people, with about 8 percent taking place in private prisons. Although the majority of prisons are run by state and local governments, the federal government oversees the detention of about 200,000 prisoners, the ACLU reports. However, the Trump administration’s focus on detaining migrants in the country illegally is already impacting the prison system.
Today, many of the private prison companies see opportunity for profit as the new Trump administration takes shape.
CoreCivic is one of several companies operating private correctional facilities in the United States. The firm’s earnings grew by 22 percent in the last year. It took in more than $68 million in income in 2024.
Likewise, the GEO Group‘s earnings grew by 116 percent last year. It is one of the largest contractors to the U.S. Immigration and Customs Enforcement (ICE). In December, it announced a $70 million investment in ICE detention facilities. Since the November election, the company’s stock jumped from $15 a share to $25.
The Profit Motive
Of course, the issue with private companies taking larger roles in the justice system is not profit but the accountability. Companies have a profit motive. The same companies also have a role in influencing criminal justice policy. That influence can result in stricter laws, longer sentences, and tougher circumstances for trying children as adults, for instance.
As the Trump administration weighs heavy decisions on how deep to go in its plans to detain immigrants without visas, influence of for-profit prison companies may weigh against other concerns.
Sources:
The Bureau of Justice Statistics
The Sentencing Project
The Department of Justice
GEO Group invests in more detention facilities.
President Biden Executive Order
