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.
Monday Mornings
The latest local business news and a lookahead to the coming week.
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.
___
Hanna reported from Topeka, Kan. Associated Press writers Joshua Goodman in Miami and Morgan Lee, in Santa Fe, N.M., contributed reporting.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Authorities investigating ex-Trump prosecutor Jack Smith for alleged illegal political activity
Authorities investigating ex-Trump prosecutor Jack Smith for alleged illegal political activity

Toronto Sun

time28 minutes ago

  • Toronto Sun

Authorities investigating ex-Trump prosecutor Jack Smith for alleged illegal political activity

Published Aug 02, 2025 • 1 minute read Special counsel Jack Smith speaks to the media about an indictment of former President Donald Trump, Aug. 1, 2023, at an office of the Department of Justice in Washington. Photo by J. Scott Applewhite / THE ASSOCIATED PRESS BRIDGEWATER, N.J. — Federal officials have opened an investigation into Jack Smith, the former special counsel who investigated then-candidate Donald Trump before his reelection to a second term. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The Office of Special Counsel, an independent federal agency, on Saturday confirmed the investigation after reporting by other news organizations. Smith was named special counsel to investigate Trump in by then-Attorney General Merrick Garland in November 2022. Trump and his Republican allies, including Sen. Tom Cotton, have — without offering evidence of wrongdoing_ accused Smith of violating the Hatch Act, a federal law that bans certain public officials from engaging in political activity. Smith prosecuted two federal cases against Republican candidate Trump in the lead-up to the November 2024 presidential election. Smith ultimately dropped the cases — neither one had gone to trial — after Trump was reelected, which would have shielded him from prosecution according to longstanding Justice Department practice. Smith then subsequently resigned as special counsel. Cotton, R-Ark., on Wednesday asked the Office of Special Counsel to investigate Smith, alleging that his conduct was designed to help then-President Joe Biden and his vice president, Kamala Harris, both Democrats. Biden had dropped his own bid for reelection following his disastrous performance in a campaign debate against Trump and tapped Harris to succeed him on the ticket. Trump won the election. The New York Post was first to report on the investigation into Smith. Toronto Blue Jays Toronto & GTA Columnists Toronto & GTA Canada

Trump raises tariffs on Canadian goods, BoC keeps rate steady and Telus' new network deal: Business and investing stories for the week of Aug. 3
Trump raises tariffs on Canadian goods, BoC keeps rate steady and Telus' new network deal: Business and investing stories for the week of Aug. 3

Globe and Mail

time28 minutes ago

  • Globe and Mail

Trump raises tariffs on Canadian goods, BoC keeps rate steady and Telus' new network deal: Business and investing stories for the week of Aug. 3

Getting caught up on a week that got away? Here's your weekly digest of The Globe's most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more. U.S. President Donald Trump signed an executive order Thursday evening increasing tariffs on some Canadian goods. The order, effective at midnight on Aug. 1, raises the tariffs that Mr. Trump imposed on Canadian goods in March to 35 per cent from 25 per cent — it does not, however, apply to products that meet the rules outlined in the United States-Mexico-Canada free trade agreement, known as USMCA. Prime Minister Mark Carney, in a statement early Friday morning, said the Canadian government is disappointed by Mr. Trump's actions but remains committed to the free-trade agreement. The Prime Minister disputed Mr. Trump's justification for the 35-per-cent tariff – namely that Canada is a significant source of the deadly opioid fentanyl smuggled into the United States. While the Canadian economy has mostly avoided the impact of the tariffs because the USMCA carve-out, certain industries — such as steel and aluminium, cars, and copper — will be hit harder by the changes. The Bank of Canada held its policy interest rate at 2.75 per cent for the third consecutive time as U.S. trade policy continues to muddy the economic outlook. The central bank is operating amid massive levels of uncertainty created by U.S. President Donald Trump's barrage of tariffs and attempt to rewrite the rules of global trade. Governor Tiff Macklem said there was a 'clear consensus' to hold the rate steady, but suggested the door remained open to additional rate cuts if needed, Mark Rendell reports. The bank also held off again on publishing a central forecast in its quarterly Monetary Policy Report. Instead, it detailed three potential paths for the Canadian economy that depend on the trajectory of U.S. tariffs, ranging from a mild downturn to an extended recession. Even before Mr. Trump's tariff threads, the vibrancy of Canada's business sector was already weak, but the trade war has only deepened the rut. Statistics Canada reported this week that the number of active businesses was effectively flat in April on a month-over-month basis, increasing by just 0.1 per cent. Sectors that are dependent on U.S. demand, such as mining, oil and gas extraction, experienced a sharper decline in the number of active businesses from the start of last year than other sectors, and the gap has widened since Mr. Trump returned to the White House. Statscan noted this decline began before that, and suggested other factors could be at play. Jason Kirby takes a closer look at the numbers in this week's Decoder series. After a months-long search for buyers, Telus Corp. T-T has entered a definitive agreement with the Caisse de dépôt et placement du Québec to sell a minority stake in its nationwide cellphone tower network for $1.26-billion. The Caisse, Canada's second-largest pension fund, will acquire a 49.9-per-cent stake in the infrastructure asset, which is being spun out as a new company called Terrion. The business is worth $2.5-billion, including Telus's 50.1-per-cent equity interest. Telus had $25-billion in long-term debt as of March, and intends to use all proceeds from the sale to pay some of it down. Drumeo is the brainchild of Jared Falk, an Abbotsford-born music teacher, performer and entrepreneur who first started giving drum lessons by video in the pre-streaming era of the early 2000s. Now Mr. Falk's company – Musora Media Inc. – boasts more than 100,000 paid subscribers, with offerings for piano, vocals and guitar as well. Armed with a roster of drumming legends — including Chad Smith of the Red Hot Chili Peppers, Stewart Copeland of The Police, the internet sensation known as El Estepario Siberiano, and The Rolling Stones veteran session man Steve Jordan — Drumeo appears all over the internet with viral clips of musicians showing off their signature grooves and testing themselves on unfamiliar tunes. Jeffrey Jones spoke with Mr. Falk about how he built his music lesson empire, and how Drumeo sets itself apart from the competition. Get the rest of the questions from the weekly business and investing news quiz here, and prepare for the week ahead with The Globe's investing calendar.

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