DHS Awarded $7.3 Billion in Detention Contracts
The Department of Homeland Security has pivoted toward new construction to expand its immigration detention infrastructure.
Updated on Sept. 22, 2026 in Immigration
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The Department of Homeland Security has awarded $7.3 billion in construction contracts to three firms for new immigration detention facilities. This shift signals a major change in agency procurement as officials move away from purchasing and retrofitting existing warehouse properties.
Why it matters
Following the appointment of Secretary Markwayne Mullin, the agency has reassessed its strategy after spending over $1 billion on warehouse acquisitions that carried high premiums. This pivot emphasizes purpose-built construction over the rapid conversion of vacant industrial sites.
DHS awarded contracts totaling $7.3 billion to Rapid Deployment Inc., GardaWorld, and Rudiarius Holdings Corp. for facilities in states including Texas, New York, Florida, Arizona, and California.
The players
Markwayne Mullin
He is the Secretary of the Department of Homeland Security who assumed the role in March 2026.
CoreCivic
This private prison operator was recently paid $2.2 billion by the federal government for four facilities.
Rapid Deployment Inc.
This firm secured $3.7 billion in total contract value for detention projects in El Paso and Batavia.
GardaWorld
This company was awarded $1.2 billion contracts for detention projects located in Miami and Florence.
Rudiarius Holdings Corp.
The firm received a $1.2 billion contract for the construction of a detention facility in El Centro.
The details
The agency recently finalized the purchase of four private prison facilities from CoreCivic for $2.2 billion and agreed to pay $240 million annually for facility reactivation. These new construction contracts establish an option-based framework for facility deployment over the next five years.
Timeline
December 2025 to April 2026: ICE purchased 11 vacant warehouse properties.
March 2026: Secretary Markwayne Mullin succeeded Kristi Noem.
August 2026: DHS acquired four private prison facilities.
September 22, 2026: These construction contracts were formally announced.
2026-2031: The five-year window for DHS to exercise construction contract options.
Political Context
Critics argue that shifting from existing warehouse conversions to large-scale construction increases long-term fiscal burdens compared to the emergency measures used during the 2025-2026 property acquisition surge. Opposition advocates also contend that the move toward private prison partnerships fundamentally entrenches the federal government's reliance on corporate operators.
These infrastructure contracts require significant federal outlays that may impact future taxpayer-funded budgets for border management. Residents near the designated construction sites in cities like El Paso and Batavia may see long-term changes to local land use and regional security operations.
The takeaway
The move toward dedicated construction indicates a strategic shift away from temporary, high-premium warehouse conversions toward permanent government infrastructure. Readers should note that this transition marks a major commitment to multi-year facility management partnerships.
Further reading
For more on the current state of border infrastructure, see our coverage on Immigration.
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