CoreCivic Transferred 4,554 Detention Beds to Federal Ownership on July 2
Private prison company CoreCivic sold two of California’s largest immigrant detention facilities to the Department of Homeland Security on July 2, 2026. The $1.5 billion deal transfers ownership of the Otay Mesa Detention Center in San Diego County and the California City Detention Center in Kern County directly to the federal government.
The federal government paid $739.2 million for Otay Mesa, which holds 1,994 detainees, and $732.6 million for California City, a recently opened facility with capacity for 2,560 people. CoreCivic disclosed both figures in a filing with the Securities and Exchange Commission. The company expects net proceeds of approximately $1.1 billion from the combined sale.
CoreCivic will continue operating both facilities under existing ICE contracts. But those contracts are now at risk. The company acknowledged in its SEC filing that the federal government, as the new property owner, could renegotiate or decline to renew them. The California City contract expires in August 2027. The Otay Mesa contract runs through December 2029, with a five-year extension option.
Federal Detention Budget Reached $45 Billion for Capacity Expansion
The purchase fits a broader federal strategy to expand detention infrastructure without depending on private contractors long-term. A February 2026 Brennan Center for Justice report documented the administration’s plan to bring detention facilities under direct federal ownership.
$45 billion allocated specifically for expanding ICE detention capacity through fiscal year 2029, out of $170 billion total for immigration enforcement in the 2025 federal budget
That $45 billion represents a level of detention investment the U.S. has not seen before. Together, the two California facilities add 4,554 beds to federally owned detention stock, concentrated in a state whose governor has repeatedly challenged federal immigration enforcement.
The shift from private leasing to federal ownership changes the political calculus. When the government owns the facility, it bypasses local opposition to private prison contracts and insulates detention capacity from state-level interference. California cannot pressure a private company to exit if there is no private company to pressure.
What You Can Do Now
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Call your senators at (202) 224-3121 and tell them to oppose the $45 billion detention expansion in the DHS budget. Ask them specifically to support an amendment reducing ICE detention bed funding in the next appropriations cycle.
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Contact the Senate Homeland Security and Governmental Affairs Committee at (202) 224-4751. Ask the committee to hold a hearing on the CoreCivic sale and require DHS to disclose all pending facility acquisition plans before more taxpayer funds are committed.
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Contact your House representative through house.gov/representatives/find-your-representative and ask them to request a Government Accountability Office audit of DHS detention facility purchases, including the July 2 CoreCivic transaction and contract terms.
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Find your county’s ICE detention facility at trac.syr.edu/phptools/immigration/detention and share the information with your local city council. Local resolutions opposing federal detention expansion have influenced contract negotiations in other states.
Sources
CalMatters: CoreCivic Sells Two California ICE Detention Centers to Federal Government Brennan Center for Justice: Federal Plan to Own Detention Infrastructure Without Private Contractors SEC EDGAR: CoreCivic Filing Disclosing Sale Terms for Otay Mesa and California City