Shares of private prison operators Geo Group (NYSE:GEO) and CoreCivic (NYSE:CXW) climbed sharply in early trading Monday after Congress approved a sweeping tax and spending package championed by President Donald Trump, which includes a major boost in funding for immigrant detention facilities.
By 06:23 ET (10:23 GMT), Geo Group shares had surged as much as 7.4%, while CoreCivic’s stock rose 2.7%.
These two companies are the largest private contractors managing immigration detention centers across the United States.
The newly passed legislation triples federal funding for immigrant detention over the next four years, allocating approximately $45 billion—exceeding the combined spending of the Obama, Biden, and early Trump administrations, according to federal records.
The bill also designates $46.5 billion toward continued construction of the U.S.-Mexico border wall and another $6 billion for border surveillance technologies, alongside various immigration enforcement initiatives.
Officials from U.S. Immigration and Customs Enforcement (ICE) stated that the additional funds would allow them to nearly double detention capacity to 100,000 beds, significantly expanding their ability to hold undocumented immigrants.
ICE reported that its average daily detainee population reached 56,000 last month—the highest level since the agency began releasing these figures during Trump’s first term.
“This bill will make our communities safer by making a historic investment in our border security,” said Rep. Addison McDowell on the House floor. “No more dangerous illegal aliens parading around with no consequences.”
The U.S. immigrant detention system, which is the largest worldwide, has grown over the past 40 years to house undocumented immigrants awaiting asylum hearings or deportation. While traditionally focused on individuals apprehended at the border or with criminal records, the demographic of detainees is evolving.
This year, ICE has already awarded new or expanded contracts to at least nine facilities run by Geo Group and CoreCivic, in addition to others managing tent-based detention camps.
However, some lawmakers have criticized ICE’s recent spending practices, with the House Appropriations Committee labeling it “budgetary mismanagement” after the agency exceeded its budget, requiring funds to be shifted from other government departments.
Geo Group and CoreCivic report having 14 unused prison facilities across several states, capable of housing thousands of additional detainees, and are actively recruiting staff in some locations.
Meanwhile, immigrant advocacy organizations continue to call for a halt to expanding contracts with private prison companies, citing ongoing concerns over conditions, safety, and medical care within detention centers.