jeh johnson private prisons

ICE Reconsiders Its Use of Private Prisons

Eleven days after the Justice Department announced its decision to no longer use private prisons, Homeland Security Secretary, Jeh Johnson, plans to conduct a review of Immigration and Customs Enforcement’s prison use to determine if it should also forgo private prisons.

In a statement Monday, Johnson said the Homeland Security Advisory Council will establish a subcommittee to review the agency’s use of private prisons in order to “consider all factors concerning ICE’s detention policy and practice, including fiscal considerations.”

The committee will evaluate the private prison contracts with its detention facilities run by Corrections Corp of America and The GEO Group, and make a recommendation by November 30.

ICE is a major federal client for these private prison companies and when news of the review broke, stock for Corrections Corp of America fell 9.4 percent while The GEO Group’s stock dropped 6 percent.

Since 2008, Corrections Corp of America earned $689 million from ICE contracts, which accounted for 12 percent of its revenue from state and federal contracts during this period, according to SmartProcure.

GEO Group welcomed the review, saying to ABC News that its facilities that are contracted to ICE "are highly rated and provide high-quality, cost-effective services in safe, secure, and humane residential environments pursuant to strict contractual requirements and the Federal Government’s national standards."

Corrections Corporation of America, another major private prison firm, also welcomed the review and said in a statement emailed to ABC News that it was "proud of the quality and value of the services we provide and look forward to sharing that information" with the subcommittee conducting the review.

Fast Company took a closer look at the Bureau of Prisons’ decision to phase out private prisons, what the future holds, and if states should follow suit. View their short video discussion below.

Posted in General News

Tags: ICE, DHS, DOJ, prison, bureau of prisons, BOP

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