CoreCivic Says ICE to End Agreement for Texas Border Facility

By Ben Glickman

CoreCivic, a private-prison operator, said that U.S. Immigration and Customs Enforcement planned to terminate a service agreement for a detention facility on the border which currently houses more than 1,500 people.

The Brentwood, Tenn.-based company said that ICE had given notice that it intends to end the inter-governmental service agreement for services at the South Texas Family Residential Center in Dilley, Texas.

The announcement from CoreCivic confirms a report from The Wall Street Journal that the Biden administration was closing the detention center because of its high cost to operate.

The facility generated $156.6 million in revenue for the company in 2023. CoreCivic suspended its guidance because of the cost uncertainties associated with the closure.

The facility, opened during the Obama-Biden administration to improve conditions for families arriving at the border with Mexico, has been used for detention of single adults since 2021. The company said the population at the facility as of June 9 was 1,561.

CoreCivic said it expects the canceled contract would lead to a reduction in per-share earnings of 38 cents to 41 cents.

The termination of the agreement is effective in 60 days, CoreCivic said.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

June 10, 2024 19:46 ET (23:46 GMT)

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