Trump Administration Reopens Controversial Leavenworth Prison for Migrants, Boosting CoreCivic Stock by 56%

Leavenworth, Kansas, a city with a storied history in American crime, is set to reopen its long-shuttered federal prison to hold thousands of migrants arrested by Immigration and Customs Enforcement (ICE). The facility, once described by a federal judge as a “hell hole,” will be managed by CoreCivic Corp., a private prison firm. The deal, worth $4.2 million per month, is part of a broader effort by the Trump administration to increase detention capacity for migrants.

The federal government has signed a contract with CoreCivic to reopen the 1,033-bed prison in Leavenworth. This move is part of a surge of contracts issued by ICE without seeking competitive bids, citing a “compelling urgency” for more detention beds. The push has led to soaring profit estimates for private companies like CoreCivic and The Geo Group Inc., which are politically connected and have seen significant increases in their stock prices since the reelection of President Trump.

The Leavenworth facility has a controversial history. In late 2021, CoreCivic stopped housing pretrial detainees there after then-President Joe Biden called for a reduction in the use of private prisons. The facility faced numerous issues, including stabbings, suicides, and a homicide, as detailed by the American Civil Liberties Union and federal public defenders. CoreCivic has denied these claims, calling them “false and defamatory.”

The city of Leavenworth has filed a lawsuit against CoreCivic, arguing that the company needs a special use permit to reopen the facility. CoreCivic disagrees, stating that it does not need a permit because it never abandoned the facility and that the permitting process would take too long. A state-court judge recently issued an order requiring CoreCivic to obtain the permit.

The Leavenworth facility is strategically located near the Kansas City International Airport and within ICE’s area of operations for Chicago. This central location makes it a priority for ICE and CoreCivic, as it allows for the detention of migrants from a wide geographic area. The facility is expected to hold both men and women and will be part of ICE’s broader efforts to increase detention capacity.

ICE has used letter contracts to expedite the reopening of facilities, including Leavenworth. These contracts are typically reserved for minor matters but have been used by ICE for significant changes to previous agreements. Charles Tiefer, a contract expert and professor emeritus of law, has criticized this approach, stating that letter contracts are not suitable for making big, important contracts.

The reopening of the Leavenworth facility is part of a broader trend of ICE using contract modifications to reopen shuttered lockups across the country. Other facilities, such as the Delaney Hall Facility in Newark, New Jersey, and a facility in Dilley, Texas, have also been reopened without seeking new, competitively bid contracts. These moves have raised concerns about transparency and the potential for abuse.

Private prison executives are forecasting hundreds of millions of dollars in new profits from ICE contracts. Since Trump’s reelection, CoreCivic’s stock has risen by 56% and Geo’s by 73%. The demand for detention beds has created a “gold rush” for private prison companies, allowing them to set their terms and negotiate favorable contracts with the government.

CoreCivic officials have stated that 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. However, critics have raised concerns about the lack of competition and the potential for long-term problems, given the facility’s history of issues.

Despite the controversy surrounding the Leavenworth facility, CoreCivic and other private prison companies are optimistic about the future. They have begun daily talks with the Trump administration and anticipate that all of their idle prisons will be activated this year. The reopening of the Leavenworth facility is just one part of a broader effort by the Trump administration to increase detention capacity for migrants, with potentially significant implications for both the private prison industry and the migrants themselves.