Despite outrage over immigrant detention, private prisons' bottom line is still strong
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Despite outrage over immigrant detention, private prisons' bottom line is still strong

The Center for Public Integrity |
September 1, 2018

Two of the nation’s largest private prison companies expect to cash in on additional federal contracts, according to August earnings calls.


In the wake of increased immigrant detention, two of the nation’s largest private prison companies hope to cash in with additional federal contracts to hold detainees fighting potential deportation, according to representatives addressing shareholders during second quarter earnings calls in early August.

The two firms, Boca Raton-based GEO Group, Inc., and Nashville-based CoreCivic, formerly known as Corrections Florida Corporation of America, hold  inmates under contract for states lacking detention space. But both companies also hold immigrant detainees for U.S. Immigration and Customs Enforcement, or ICE. Both firms’ history of holding immigrants stretches back 30 years and has lasted through both under Democratic and Republican administrations.

Following President Donald Trump’s victory, the value of stock in both companies recovered value that had dropped following Obama Administration moves to reduce federal use of private prisons. The Trump era also has led to new ICE contracts—even as both companies battle allegations about coercive guard practices and, separately,  negligence that allegedly could have contributed to deaths, as New York-based Human Rights Watchalleged in a June report.  

Credit by - The Center for Public Integrity

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