• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Leadershipprivate prisons

Shares of Private Prison Operators Slide After DHS Orders a Review

By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
Down Arrow Button Icon
By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
Down Arrow Button Icon
August 30, 2016, 4:52 AM ET
Corrections Corp. Shows Crime Pays As States Turn Jails Private
Signage stands outside the La Palma Correctional Center in Eloy, Arizona, U.S., on Tuesday, May 11, 2010. La Palma, which houses about 2,900 convicts from California, is one of 65 facilities operated by Corrections Corp. of America, the largest private-prison operator in the U.S. Photographer: Joshua Lott/Bloomberg via Getty ImagesJoshua Lott — Bloomberg via Getty Images

The U.S. Department of Homeland Security will study whether to discontinue using privately run detention centers, which the Justice Department recently called unsafe, for migrants and shares of private prison operators fell on Monday after the news.

Department Secretary Jeh Johnson said he directed his advisory council to evaluate whether the agency should continue to contract with private prison operators and make a recommendation by Nov. 30. Advocates for immigrants have accused the companies of withholding proper mental health and medical care from detainees to boost profits.

Immigration and Customs Enforcement (ICE), a division of DHS, currently uses detention facilities run by Corrections Corp of America and The GEO Group.

Corrections Corp of America’s stock slid 9.4% and The GEO Group’s stock fell 6% immediately after news of the review. Both stocks were rebounding later in the afternoon.

See also: How American Prisons Became a Bizarre Tourist Mecca

Corrections Corp of America earned $689 million from ICE contracts since 2008, 12% of its revenue from state and federal contracts over that time, according to the website SmartProcure which tracks government contracts. The company currently manages a facility for Central American women and children in Dilley, Texas.

The GEO Group runs a similar facility in Karnes City, Texas and has earned $1.18 billion from contracts with ICE since 2008, about 35% of its total revenue from government contracts, according SmartProcure data.

The GEO Group said in a statement, “GEO’s facilities under contract with ICE are highly rated and provide high-quality, cost-effective services in safe, secure, and humane residential environments pursuant to strict contractual requirements and the federal government’s national standards,” the statement said.

Corrections Corp of America spokesman Steve Owen said, “We’re proud of the quality and value of the services we provide and look forward to sharing that information.”

See also: Private Prison Operators Shrug Off U.S. Policy Shift

Immigration advocates and members of Congress have ramped up pressure on DHS to end its contracts with the private prison companies since the Justice Department announced on Aug. 18 it would do so.

That was prompted by an inspector general’s report that criticized the safety and effectiveness of private prisons.

“Rather than wait for a review and a report from a committee, the president should ensure that the phase-out of private prisons … is extended to DHS operations immediately,” said Greg Chen, advocacy director at the American Immigration Lawyers Association.

Senator Bernie Sanders, former Democratic presidential candidate, and Democratic Representative Raul Grijalva asked DHS in a letter last week to end the practice.

See also: Deloitte Urges the UK Not to Shut Out Skilled Migrants After Brexit

A Department of Homeland Security official told Reuters on Aug. 19 that ICE needed private prison companies because they offer flexibility to quickly build facilities and adjust detention space as migration flows fluctuate.

Both companies also contract with state and local prison systems, which make up about half of their revenue.

For more on prisons, watch Fortune’s video:

A Reuters survey of 10 states with the largest contracts with private prison companies, including California and Texas, showed none had immediate plans to drop their contracts.

About the Authors
By Reuters
See full bioRight Arrow Button Icon
By Michelle Toh
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Most Popular

placeholder alt text
Economy
Elon Musk warns the U.S. is '1,000% going to go bankrupt' unless AI and robotics save the economy from crushing debt
By Jason MaFebruary 7, 2026
1 day ago
placeholder alt text
Success
Even with $850 billion to his name, Elon Musk admits ‘money can’t buy happiness.’ But billionaire Mark Cuban says it’s not so simple
By Preston ForeFebruary 6, 2026
2 days ago
placeholder alt text
Success
Gen Z Patriots quarterback Drake Maye still drives a 2015 pickup truck even after it broke down on the highway—despite his $37 million contract
By Sasha RogelbergFebruary 7, 2026
2 days ago
placeholder alt text
Future of Work
Anthropic cofounder says studying the humanities will be 'more important than ever' and reveals what the AI company looks for when hiring
By Jason MaFebruary 7, 2026
1 day ago
placeholder alt text
AI
AI can make anyone rich: Mark Cuban says it could turn 'just one dude in a basement' into a trillionaire
By Sydney LakeFebruary 7, 2026
1 day ago
placeholder alt text
Real Estate
We may be looking at the housing affordability crisis all wrong. Higher earners are driving home prices, not lack of supply, researchers say
By Jason MaFebruary 7, 2026
22 hours ago

Latest in Leadership

EconomyUkraine invasion
Russian attacks on Ukraine’s energy infrastructure are the biggest threat to its economy, which could shrink as much as 3%
By Kamila Hrabchuk and The Associated PressFebruary 8, 2026
7 hours ago
C-SuiteMedia
Washington Post publisher to step down after big layoffs as union calls his legacy ‘attempted destruction of a great American journalism institution’
By David Bauder and The Associated PressFebruary 8, 2026
7 hours ago
Tom Brady looks on prior to the game at AT&T Stadium on September 15, 2024 in Arlington, Texas.
Personal FinanceNFL
Tom Brady is making 15 times more as a Super Bowl commentator than he did playing in the big game thanks to $375 million contract 
By Eva RoytburgFebruary 8, 2026
9 hours ago
tipping
CommentaryTipping
I’m the chief growth officer at a payments app and I know how America really tips. Connecticut, I’m looking at you
By Ricardo CiciFebruary 8, 2026
9 hours ago
heacock
CommentaryLeadership
I’m a CEO who grew a ‘boring’ air filter business into a $260 million company, and AI is going to help blue-collar, everyday people just like me
By David HeacockFebruary 8, 2026
9 hours ago
Joanna Griffiths, the founder and president of Knix
SuccessEntrepreneurs
The founder of $400 million company Knix sees a hypnotherapist to ‘rewire’ her brain and work through her fear of failure
By Emma BurleighFebruary 8, 2026
10 hours ago