Last week, the U.S. Department of Justice announced that it would phase out its use of private prisons. While significant, the move will not put an end to the booming immigrant detention industry. Private prison companies will continue to receive millions in government contracts to detain unauthorized immigrants.
Even though private prison companies play a central role in the government’s immigration strategy, the financial dealings between the two are often opaque. In his piece for the Washington Post, reporter Chico Harlan sheds light on one of these secretive arrangements, detailing a $1 billion deal between the Obama Administration and Corrections Corporation of America, also known as CCA, the largest private prison company in the country.
Under the deal, CCA was responsible for building and maintaining a large immigrant detention facility for women and children in South Texas; in an unusual arrangement, CCA is guaranteed payment for being at capacity regardless of how full the facility actually is.