American private prisons are preparing to reap record profits thanks to the decision of newly elected President Donald Trump to revoke the decree of his predecessor, Joe Biden, which prohibited the use of alternative facilities for the detention of federal prisoners.
The decision, which restored contracts with industry giants such as GEO Group and CoreCivic, companies specializing in the incarceration of immigrants, has already led to a significant increase in the stock prices of these companies, rising by 105% and 50%, respectively, since Trump’s victory in the 2024 elections. With new Republican policies promoting mass detentions, the sector expects to generate huge revenues.
In recent years, independent prisons have had a fluctuating relationship with the Department of Justice, but the industry had anticipated this shift. George Zoley, CEO of GEO Group, stated that the company had prepared for a change like this even before “The Donald” took office.
However, the real opportunity lies not only in the detention of prisoners, but especially in the Republican plans to control immigration. The mass incarceration and deportation of immigrants, which remains a central theme of the presidential agenda, promise to yield enormous profits.
Zoley commented that this scenario represents an unprecedented opportunity. According to forecasts, these policies could be crucial for building new detention facilities and expanding existing structures, considering the need for a significantly higher number of beds to handle the influx of prisoners.
Many of the most important companies in this sector have long been engaged in lobbying and political donations, and they have strong ties to the new president. GEO Group donated millions of dollars to Trump and his Political Action Committees, organizations created to raise funds, and through this, it has forged a close relationship with the administration.
In a context where private prisons are now recognized as a true “detention industry,” the increased demand for space could represent a significant economic opportunity. However, Trump is facing the same issues that Obama and Biden encountered in managing illegal immigrants.
NBC News reveals that some of those arrested have already been released under supervision. Like his predecessors, the newly elected president is limited by the lack of space in ICE detention centers and legal restrictions. The absence of adequate facilities and the refusal of some countries to take back their citizens force immigration authorities, ICE, to release some detainees despite the White House rhetoric on mass deportations.
