This past August, the Department of Justice released a statement that it would begin the process of phasing out private prison contracts in federal prisons. According to the Department of Justice, the decision came in response to a declining prison population and acknowledgements that private prisons often have lower safety and security standards.
Private prison corporations, such as Corrections Corporations of America (CCA) and GEO Group, were struggling in the early 2000s. However, following 9/11, immigration became a national security issue, which led to an increase in funding for Immigration and Customs Enforcement (ICE). The growth in ICE following 9/11 led to CCA and GEO Group being awarded lucratvie immigrant detention center contracts.
These private prison contracts often include a further requirement that the government keep immigrant detention centres full and at times contain a "tiered pricing structure" that provides discounts for those detained in excess of the guaranteed minimum. Private prison companies now control 62 percent of immigration detention beds in the US, according to a report by Grassroots Leadership.
Following the Department of Justice's announcement, the Department of Homeland Security announced that it would evaluate whether it will phase out the use of private immigrant detention centers as well. Read more about Is this the end of prison for profit in the US?