logo
Takeaways from AP's reporting on shuttered prisons, mass deportation push and no-bid contracts

Takeaways from AP's reporting on shuttered prisons, mass deportation push and no-bid contracts

LEAVENWORTH, Kan. (AP) — Private prison operators are marketing their shuttered lockups to federal immigration officials as President Donald Trump pushes for mass deportations, with some facilities nabbing lucrative no-bid contracts.
When Trump, a Republican, took office, politically connected private-prison giants CoreCivic Inc. and The Geo Group Inc. had around 20 idle facilities, partially the result of sentencing reforms that reduced prison populations.
But the push to reopen them has been met with resistance in unexpected places like Leavenworth, Kansas, a town whose name alone evokes a short hand for serving hard time. The Leavenworth facility was mothballed in late 2021 after then-President Joe Biden, a Democrat, called on the U.S. Department of Justice to curb the use of private prisons.
Here's a look at some of the takeaways from an Associated Press report about private prisons in the era of mass deportations.
Demand for bed spurs interest in private prisons
The Trump administration wants to increase its budgeted capacity of about 41,000 beds for detaining migrants to at least 100,000 beds and maybe — if private prison executives' predictions are accurate — more than 150,000.
That has a gallery of shuttered facilities — some with a history of issues — coming online near major immigrant population centers, from New York to Los Angeles, where Trump hopes to detain and deport millions of people.
With Congress weighing massive spending increases for deportations, the companies' stock and profit estimates have soared.
Deals inked as contract modifications or without bids
Just last week, Geo Group announced that ICE modified a contract for an existing detention center in southeastern Georgia so that the company could reopen an idle prison on adjacent land to hold 1,868 migrants.
'Never in our 42-year company history have we had so much activity and demand for our services as we are seeing right now,' said CoreCivic CEO Damon Hininger during an earnings call last month with shareholders.
Leavenworth inspired the term 'the big house'
But skeptical city officials in Leavenworth, a town of around 37,000 residents on the northwest fringe of the Kansas City metropolitan area, argue that CoreCivic needs a special use permit to reopen its facility. CoreCivic disagrees, saying that it doesn't because it never abandoned the facility and that the permitting process would take too long. Leavenworth sued the company to force it to get one, and a state-court judge last week issued an order requiring it.
The area's politics and roots as a prison town might have been expected to help CoreCivic. Trump carried its county by more than 20 percentage points in each of his three campaigns for president. And in years past, the federal penitentiary housed gangsters Al Capone and Machine Gun Kelly — in a building so storied that it inspired the term 'the big house.'
CoreCivic 'caused the city all kinds of heartburn,' attorney says
An attorney for the city, Joe Hatley, said the legal fight indicates how much ill will CoreCivic generated when it held criminal suspects there for trials in federal court for the U.S. Marshals Service.
'They just mismanaged it, and it caused the city all kinds of heartburn,' Hatley said.
Vacancies among correctional officers were as high as 23%, according to a Department of Justice report in 2017.
'It was just mayhem,' recalled William Rogers, who worked as a guard at the CoreCivic facility in Leavenworth from 2016 through 2020.
And the American Civil Liberties Union and federal public defenders detailed stabbings, suicides, a homicide and inmate rights violations in a 2021 letter to the White House. CoreCivic responded at the time that the claims were 'false and defamatory.'
Critics have included a federal judge
When Leavenworth sued CoreCivic, it opened its lawsuit with a quote from U.S. District Court Judge Julie Robinson — an appointee of President George W. Bush, a Republican — who said of the prison: 'The only way I could describe it frankly, what's going on at CoreCivic right now is it's an absolute hell hole.'
The city's lawsuit described detainees locked in showers as punishment. It said that sheets and towels from the facility clogged up the wastewater system and that CoreCivic impeded the city police force's ability to investigate sexual assaults and other violent crimes.
The facility had no inmates when CoreCivic gave reporters a tour earlier this year, and it looked scrubbed top to bottom and the smell of disinfectant hung in the air.
When asked about the allegations of past problems, Misty Mackey, a longtime CoreCivic employee who was tapped to serve as warden there, apologized for past employees' experiences and said the company officials 'do our best to make sure that we learn from different situations.'
From idle prisons to a 'gold rush'
ICE declared a national emergency on the U.S. border with Mexico as part of its justification for authorizing nine five-year contracts for a combined 10,312 beds without 'Full and Open Competition.'
Only three of the nine potential facilities were listed in ICE's document: Leavenworth, a 2,560-bed CoreCivic-owned facility in California City, California, and an 1,800-bed Geo-owned prison in Baldwin, Michigan.
The agreement for the Leavenworth facility hasn't been released, nor have documents for the other two sites. CoreCivic and Geo Group officials said last month on earnings calls that ICE used what are known as letter contracts, meant to speed things up when time is critical.
CoreCivic officials said ICE's letter contracts provide initial funding to begin reopening facilities while the company negotiates a longer-term deal. The Leavenworth deal is worth $4.2 million a month to the company, it disclosed in a court filing.
Financial analysts on company earnings calls have been delighted. When CoreCivic announced its letter contracts, Joe Gomes, of the financial services firm Noble Capital Markets, responded with, 'Great news.'
'Are you hiding any more of them on us?' he asked.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Hensoldt Second Quarter 2025 Earnings: EPS Misses Expectations
Hensoldt Second Quarter 2025 Earnings: EPS Misses Expectations

Yahoo

time24 minutes ago

  • Yahoo

Hensoldt Second Quarter 2025 Earnings: EPS Misses Expectations

Hensoldt (ETR:HAG) Second Quarter 2025 Results Key Financial Results Revenue: €549.0m (up 5.6% from 2Q 2024). Net loss: €12.0m (loss widened by 20% from 2Q 2024). €0.10 loss per share (further deteriorated from €0.081 loss in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Hensoldt Earnings Insights Looking ahead, revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Aerospace & Defense industry in Germany. Performance of the German Aerospace & Defense industry. The company's shares are down 5.5% from a week ago. Risk Analysis It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Hensoldt (at least 1 which is a bit concerning), and understanding them should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Unilever First Half 2025 Earnings: EPS: €1.43 (vs €1.48 in 1H 2024)
Unilever First Half 2025 Earnings: EPS: €1.43 (vs €1.48 in 1H 2024)

Yahoo

time24 minutes ago

  • Yahoo

Unilever First Half 2025 Earnings: EPS: €1.43 (vs €1.48 in 1H 2024)

Unilever (LON:ULVR) First Half 2025 Results Key Financial Results Revenue: €30.1b (down 3.2% from 1H 2024). Net income: €3.51b (down 5.1% from 1H 2024). Profit margin: 12% (in line with 1H 2024). EPS: €1.43 (down from €1.48 in 1H 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Unilever Earnings Insights Looking ahead, revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Personal Products industry in the United Kingdom. Performance of the British Personal Products industry. The company's shares are up 1.5% from a week ago. Risk Analysis You should always think about risks. Case in point, we've spotted 2 warning signs for Unilever you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio

A viable Palestinian state remains far off, despite growing international clamor
A viable Palestinian state remains far off, despite growing international clamor

CNN

time24 minutes ago

  • CNN

A viable Palestinian state remains far off, despite growing international clamor

First France, then the United Kingdom, and now Canada. Three of the world's most powerful Western nations have added their economic and geopolitical clout to calls for a Palestinian state, an idea already endorsed by more than 140 other countries. The moves have many motives, from a sense of frustration with Israel, to domestic pressure, to outrage over the images of starving Palestinians. Whatever the reason, Palestinians have welcomed the announcements as a boost for their cause. The Israeli government has rejected the calls, describing them as tantamount to rewarding terrorism. US President Donald Trump meanwhile seems increasingly frustrated with Israeli Prime Minister Benjamin Netanyahu, particularly over the starvation in Gaza that the Israeli leader denies, but has disturbed Trump. Trump wants regional peace, as well as the accolades – namely a Nobel Peace Prize – for making it happen. He wants Saudi Arabia to normalize relations with Israel, expanding the Abraham Accords he cemented between Israel and several other Arab states during his first term. But Riyadh has been firm that this cannot happen without an irreversible path to a Palestinian state. But the latest moves by US allies France, Britain and Canada – while in many ways largely symbolic – have left Washington increasingly isolated over its backing for Israel. Palestinian statehood could help bring an end to a war that has killed more than 60,000 Palestinians in Gaza since Hamas's brutal October 7 attack killed around 1,200 people in Israel almost two years ago, as well as bring home the hostages still being held in Gaza. But one of the toughest challenges is imagining what it looks like, because a modern Palestinian state has never existed before. When Israel was founded in the aftermath of World War II it quickly gained international recognition. That same period, for Palestinians, is remembered as al-Naqba, or 'the catastrophe' – the moment when hundreds of thousands of people fled or were forced from their homes. Since then, Israel has expanded, most significantly during the 'Six Day War' of 1967, when Israel turned the tables on a coalition of Arab states and gained East Jerusalem, the West Bank and Gaza. Palestinian territory has meanwhile only shrunk and splintered. The closest to what a future Palestinian state may look like was hashed out in a peace process in the 1990s which came to be known as the Oslo Accords. Roughly speaking, the Palestinian state envisaged in Oslo, agreed to by both Palestinian and Israeli negotiators, would be based on Israel's 1967 borders. The broad outline of Oslo was to have some land trades, a little bit given in one place for the removal of an Israeli settlement, in a negotiated process. The historic handshake on the White House lawn by Israel's then Prime Minister Yitzhak Rabin and Palestinian leader Yasser Arafat hosted by then-US president Bill Clinton remains one of the triumphs of modern diplomacy. Rabin's assassination by a far-right fanatic in 1995 robbed Israel of its peacemaker leader. And while the framework of Oslo lived on in negotiations and academia, there is little initiative now. What was on offer back then is no longer realistic. In recent years, Israeli settlements in the occupied West Bank have expanded massively, often with the encouragement of the Israeli government, threatening the chances of creating a contiguous Palestinian state in the region. Then there is the question of who would govern a future Palestinian state. The Palestinian Authority, which governs parts of the West Bank, is distrusted by many Palestinians who view it as weak or corrupt. Even without all these complications, Netanyahu won't accept a Palestinian state, which he has recently claimed would be 'a launch pad to annihilate Israel.' Some members of his cabinet are far more hard-line, not only refusing to countenance an independent state but wanting to annex the territory. These ministers propping up Netanyahu's government have said they would starve Palestinians in Gaza rather than feed them, and would collapse the coalition if he so much as suggested giving in to the growing international pressure on Israel. Netanyahu has shown no intention of backing down, and will wear whatever France, the UK, and any others force on him as a badge of honor. Without a partner in the Israeli government, recognition of a Palestinian state will fall flat, and could even entrench Netanyahu further. It would be a big price to pay if the outcome were Israel making the possibility of a Palestinian state all the more distant. But at the same time, with a growing number of angry ex-partners in the international community who are likely to increase their pressure on Trump to shift his position, it is Israel that may find itself disadvantaged, however strongly it protests.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store