ICE signs $1 billion contract with private firm for New Jersey detention center

The U.S. Immigration and Customs Enforcement (ICE) said Wednesday it would reopen a 1,000-bed New Jersey detention center after signing a $1 billion contract with a private global lender.

ICE will use the Delaney Hall facility in Newark for federal immigration processing.

"The location near an international airport streamlines logistics, and helps facilitate the timely processing of individuals in our custody as we pursue President Trump’s mandate to arrest, detain and remove illegal aliens from our communities,” acting ICE Director Caleb Vitello said in a statement.

Vitello was reassigned to oversee all field and enforcement operations last Friday, including the agency's new 15-year fixed-price contract with the GEO Group, which manages private prisons nationwide.

“Our company-owned Delaney Hall Facility will play an important role in providing needed detention bedspace and support services for ICE in the Northeast. We are continuing to prepare for what we believe is an unprecedented opportunity to help the federal government meet its expanded immigration enforcement priorities,” George C. Zoley, executive chairman of GEO said of the new deal.

The company sued New Jersey officials in April of 2024 over state law that prevents private and public companies from accepting contracts with ICE to detain immigrants. A federal judge ruled that the law is unconstitutional as it pertains to private companies in 2023. However, the decision is still awaiting review from a federal appellate court.

GEO currently contracts with ICE for the provision of secure residential care services at 20 different facilities in the United States with a total capacity of approximately 19,000 beds according to legal filings.

“We are taking several important steps to meet this opportunity, including making a previously announced $70 million investment in capital expenditures to strengthen our capabilities to deliver expanded detention capacity, secure transportation, and electronic monitoring and related services to ICE and the federal government,” Zoley said.

The CEO said the company would invest $38 million to renovate existing facilities in addition to $16 million for additional GPS tracking devices and $7 million to expand their secure transportation fleet, according to Thursday's earning call transcript.

Zoley said the spending would open 17,000 detention beds for ICE’s use.

“We expect the utilization of these additional 17,000 beds could generate between $500 million and $600 million in incremental annualized revenues with margins consistent with our secure services own facilities which average 25 percent to 30 percent,” Zoley said.

“These additional 17,000 beds include our company-owned 1,000 bed Delaney Hall facility in Newark, New Jersey.”

The acquisition comes as former Blackwater CEO Erik Prince presented the new administration with a 26-page plan to use private sector businesses to aid in mass deportation efforts.

The New Jersey governor's office did not immediately respond to The Hill's request for comment.

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