DHS Buys Two California Detention Centers for $1.5 Billion

The U.S. Department of Homeland Security purchased two immigration detention centers in Southern California from CoreCivic for approximately $1.5 billion. The acquisition includes the 2,560-bed California City Detention Facility for $732.6 million and the 1,994-bed Otay Mesa Detention Center in San Diego for $739.2 million. Funding for the deal was provided by the One Big Beautiful Bill, a spending measure designed to expand detention capacity for the administration's mass deportation agenda.

Federal ownership is intended to protect the facilities from California's sanctuary policies and state legislation aimed at making private prisons financially infeasible or illegal. While the federal government now owns the real estate, CoreCivic will continue to manage day-to-day operations under existing contracts with U.S. Immigration and Customs Enforcement through 2027 and 2029. CoreCivic expects net proceeds of $1.1 billion after taxes and expenses.

Local opposition remains high, particularly in California City. On July 7, the California City Planning Commission voted 2-1 to uphold a site plan review for that facility, denying an appeal by the Dignity Not Detention Coalition. The hearing featured over 100 protesters and warnings from the California Attorney General's Office regarding municipal code violations and bed capacity. Legal experts suggest that the transition to federal ownership may now limit the ability of state officials to conduct oversight and inspections of the centers.