The U.S. Department of Homeland Security (DHS) has acquired two of California's largest immigrant detention centers from private prison operator CoreCivic in a deal worth **$1.5 billion**, signaling a major push to expand federal detention capacity. The **California City Detention Facility**, which holds 2,560 people, and the **Otay Mesa Detention Center** in San Diego County, with 1,994 beds, were purchased for $732.6 million and $739.2 million respectively[1][2]. CoreCivic announced the sale was completed on July 2 and expects to receive approximately **$1.1 billion** in net proceeds from the transaction[3].
This acquisition follows the passage of President Trump's "One Big Beautiful Bill," a sweeping tax and spending law that allocated an additional **$170 billion** to DHS for immigration enforcement operations[2]. The department aims to reduce reliance on private prisons by transitioning to direct federal ownership, thereby increasing its ability to arrest, detain, and deport immigrants. However, CoreCivic will continue to operate both facilities under existing contracts that run through **August 2027** for California City and **December 2029** for Otay Mesa, with options for extension[2].
DHS officials stated that the purchase was necessary because securing detention space in California is difficult due to cooperation challenges with state and local governments[2]. Critics, including civil rights groups and some legal experts, argue that federal ownership allows the government to **sidestep state oversight and regulatory efforts**[2]. The GEO Group, another private prison operator, has previously noted that federal ownership limits state intervention and provides advantages in litigation[7]. Although California previously attempted to restrict private detention facilities, a state law limiting such operations was invalidated by the **federal appellate court**, leaving the state unable to block the new federal acquisition[2].
