The Trump administration has chosen obscure companies to convert warehouses into mass detention centres for Immigration and Customs Enforcement (ICE), as part of its intensified immigration crackdown. The move aims to expand capacity to hold migrants awaiting deportation, amid scrutiny over overcrowded conditions in existing facilities.
The Department of Homeland Security (DHS) plans to renovate eight existing structures into detention centres capable of holding 7,000 to 10,000 detainees, along with 16 processing centres. The project, funded by Trump's One Big Beautiful Bill Act, carries an estimated cost of $38.3 billion.
Federal spending records show that defence contractor KVG LLC was awarded a contract worth at least $113.1 million on Friday to retrofit a warehouse in the Williamsport area of Maryland and provide operational services. Security contractor GardaWorld Federal Services LLC received a separate contract worth at least $313.4 million to renovate a warehouse in Surprise, Arizona, and manage the facility. Both projects are expected to be completed within a year, though timelines could extend to 2029.
The Washington Post highlighted the relative inexperience of these firms compared to industry leaders The Geo Group and CoreCivic. The Maryland contract is KVG's first government contract for immigrant detention, while GardaWorld's Arizona agreement marks its first direct contract with ICE to oversee a detention centre, despite having employed guards at other facilities.
CoreCivic spokesman Steve Owen told The Washington Post that the company did not pursue these projects, stating, “The idea that companies with no track record in this industry can replicate the decades of operational experience, compliance infrastructure and facility management capability we have defies common sense.” Geo Group spokesman Chris Ferreira affirmed the company's continued role in supporting federal detention capacity goals.
DHS declined to comment on the contracts but stated, “ICE has new funding to expand detention space to keep these criminals off American streets before they are removed for good from our communities.” The Independent has sought further comment from relevant parties.
