Federal Government Pauses ICE Facility Construction Near Gilroy

The U.S. Department of Homeland Security and U.S. Immigration and Customs Enforcement (ICE) agreed to a voluntary pause in construction and development activities at a 25-acre site near Gilroy, California, until September 9. The agreement, approved by Judge Eumi Lee on July 14, 2026, allows the federal government additional time to respond to a lawsuit and a motion for a temporary injunction.

The State of California and Santa Clara County sued the federal government on June 10, alleging that the project violates federal environmental laws, the Intergovernmental Cooperation Act, and agricultural zoning rules. Plaintiffs claim the government bypassed mandatory environmental reviews and failed to consult local authorities. While the Department of Homeland Security characterized the site as an office facility, blueprints include detainee processing, interview, and holding rooms. Local and state officials believe the facility is designed to hold 150 people.

Federal agencies have avoided formal acknowledgment of the project; ICE previously stated in May that it had no plans for a detention center in Gilroy. As part of the legal compromise, the parties requested that the court move the injunction hearing from October 7 to no later than September 9. California Attorney General Rob Bonta and County Counsel Tony LoPresti indicated that the pause is a significant step in protecting the community while they continue to litigate the case.