In August, the Federal Government announced its decision to end the use of for-profit prisons to house federal inmates. According to a memo released by the Department of Justice, the Federal Bureau of Prisons and the DOJ based their decision primarily on the facts that the cost savings of private facilities are negligible, and such facilities failed to provide “the same level of correctional services, programs and resources.”

Immigration detention facilities house far more detainees than the private facilities the federal prison system has used. However, it remains in question what the implications of this decision will be on the federal practice of contracting with private corporations to house immigrant detainees. The Obama Administration has budgeted $2.1 billion for detention operations in 2017, a system that currently holds over 31,000 people in custody on any given day. Out of the ten largest immigration detention facilities in the United States, nine are operated by private companies, housing about two-thirds of all immigrant detainees.

Figures for how much of the detention operations budget flows to private companies have not been released by Immigration and Customs Enforcement (ICE). However, federal budget data analysis by Grassroots Leadership, an Austin, Texas based non-profit organization, has found that about $1 billion a year, or half the annual budget for detention operations, went to private companies.

In late August, the Secretary of the Department of Homeland Security (DHS), Jeh Johnson, ordered a review of ways to end the use of private detention facilities. While Secretary Johnson has not taken a side on this issue, his Homeland Security Advisory Council is expected to make a recommendation by the end of November on the results of DHS’s review.