Private Prison Business Booms Under Trump Administration

Private prisons are profiting off U.S. President Donald Trump's continued crackdown on undocumented immigrants, Houston Chronicle reported. A Houston Chronicle investigation revealed a staggering surge in the number of detainees under Trump administration. Even though the arrests of those crossing the border have declined, arrests within the country have skyrocketed. 

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During the first three months of the Trump administration, at least 113,828 undocumented immigrants were locked up in 180 different facilities across the United States, which is 10 percent more than 2016. 

Two private companies, GEO Group and its chief competitor Nashville-based CoreCivic – formerly Corrections Corporation of America or CCA – which earned over US$2 billion last year have had their stock value doubled since Trump took office. 

The current U.S. administration's crackdown on undocumented immigrants has not only led to a surge in the number of detainees but also the total time spent in detention centers. As more of these individuals fight deportation, their time spent in the centers will likely increase by the 35-day average stay, GEO officials reportedly said at a recent investor's briefing. 

To house the detainees, the Trump administration recently proposed pumping an additional US$1.6 billion into U.S. Immigration and Customs Enforcement's (ICE's) budget for 2018. This increase will also fund the purchase of additional beds – up from 34,000 to 51,000 – in detention facilities nationwide, the Houston Chronicle reported. 
Most of these beds will be at the GEO Group and CoreCivic facilities as they own and operate the majority of ICE detention centers in the nation. 

According to federal statistics released to the Houston Chronicle, between February and June, ICE agents arrested more than 62,200 undocumented immigrants, which is one-third more than the total number detained in 2016.

While the number of arrests has increased, fewer detainees are being released under the Trump administration compared to 2016. Last year, an average of 2,400 individuals were being released from ICE's custody every month; but the number plunged to about 100 through June this year, according to data released by the Transactional Access Records Clearinghouse. 

ICE detention contracts help boost these companies' profit as they have made provisions to reduce their cooking and cleaning expenses. These companies can get away with paying a mere US$1 to the detainees who work up to eight hours carrying out those duties.