Tough on Crime, Easy on Profit: Private Prisons

In January 2021, Biden signed an executive order ending the use of privately-operated prisons. On the path toward rehabilitation, the Federal Bureau of Prisons ended the use of these facilities on November 30, 2022. But in early 2025, Trump reversed this executive order. This reversal revived an industry that had been losing momentum.

The history of privatization in the U.S. dates back to a period of mass incarceration driven by “tough on crime policies.” The Nixon and Reagan administrations championed the war on drugs and the tough-on-crime rhetoric. During the so-called “War on Drugs,” there were more than 1.5 million arrests. This resulted in the demand for facilities to house inmates. They needed beds—they needed beds quickly, and they needed to be cheap. The government turned to private prisons to solve the crisis it had created, and the industry saw it as an opportunity to profit. 

Today, GEO Group and CoreCivic, two of the largest private prison companies, control half of the private prisons in the U.S. and generate billions in annual revenue. These companies profit from housing those convicted of crimes—people’s uncles, fathers, mothers, and daughters. These companies profit from imprisoning American citizens. And it comes at a steep cost. Privately run prisons cut corners. They are often overcrowded and operate in inhumane conditions. They lack adequate training, which results in higher rates of inmate and staff assault. This entire model creates a security risk—risk for the inmates, risk for the government, and risk that we will never move away from a punitive criminal justice system. Beyond these risks, when the government enters into a contract with a private prison, it remains responsible for any actions that violate an inmate’s constitutional rights. This is an actual win-win scenario for these private prisons.

Just last month, seven detainees housed at the California City Immigration Processing Center, a private prison company owned by CoreCivic, sued the U.S. Immigration and Customs Enforcement for its inhumane conditions. The lawsuit alleges the facility is polluted by sewage leaks, infested with bugs, and is denying people access to food, water, and lawyers. The detainees claim the facility does not have appropriate medical attention for life-threatening conditions, and those with mobility issues lack access to wheelchairs and proper assistance. Unfortunately, this case is far from unique. It is the same pattern we see again and again: private prisons failing to provide fundamental human rights for the people in their custody. 

Political Influence & Private Prisons Today

The industry’s success ebbs and flows with the political climate. In 2016, the Obama administration attempted to phase out contracts, and the stocks of CoreCivic and Geo Group dropped by 50 percent. And only within a year of Trump taking office in 2017, stocks rose by more than 50 percent.

Companies like GEO Group and CoreCivic have been known to lobby against immigration reform laws, ensuring continued demand for more beds. To date in 2025, CoreCivic saw a 55 percent increase in immigration detainee contracts. These new contracts are expected to generate approximately $320 million of annual revenue for the company. A significant portion of both companies' revenues comes from ICE contracts. Reports show GEO Group at 43 percent and CoreCivic at 30 percent.6 The number of contracts will only continue to rise under the administration's unethical—and often unconstitutional—deportation efforts. 

Recently, news broke that CoreCivic was “awarded” a contract in October. The contract allows the Oklahoma Department of Corrections (ODOC) and ICE to resume operations at Diamondback Correctional Facility in Watonga, Oklahoma. And they have already been recruiting. Jobs are currently being marketed with a starting pay of $29 an hour, compared to the ODOC starting salary of $21 an hour.

Most recently, the GEO Group is being sued for practices at one of its detention centers in Colorado. They argued before the Supreme Court that it should be granted the same immunity as the government. In the federal district court, they argued that they could not be held liable because they were acting under their ICE contract. When private companies claim the same level of immunity as the federal government, something has gone very, very wrong. It is time to end the use of private prisons in the United States of America.

Moving Forward

Private prisons thrive on profit, not public safety. They thrive on punishment, not rehabilitation. They claim efficiency, rake in billions, and destroy lives. The role of a healthy criminal justice system is to punish, rehabilitate, and deter. Sadly, we seem to be only interested in punishment in the United States. But, I have a dream of a society that focuses on rehabilitation, restoration, and reducing recidivism—a society that cares more about its people and citizens than it does about punishment. I have a dream of a society that cares about you. The United States is not “tough on crime.” The United States is soft on corporate welfare, and it is time that we end the use of private prisons, invest in the rehabilitation of incarcerated persons, and build a better future for all Americans, regardless of their past. After all, we are all only one mistake away from experiencing this first-hand.

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Biden White House, Executive Order on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities (Jan 26, 2021). 

Trump reverses Biden order that eliminated DOJ contracts with private prisons, Brennan Center for Justice (2024), https://www.brennancenter.org/our-work/analysis-opinion/trump-reverses-biden-order-eliminated-doj-contracts-private-prisons. 

Drug Policy Alliance | 131 West 33rd Street, 15th Floor, New York, NY 10001, https://www.unodc.org/documents/ungass2016/Contributions/Civil/DrugPolicyAlliance/DPA_Fact_Sheet_Drug_War_Mass_Incarceration_and_Race_June2015.pdf.

Private prison companies’ enormous windfall: Who stands to gain as ice expands Brennan Center for Justice (2025), https://www.brennancenter.org/our-work/analysis-opinion/private-prison-companies-enormous-windfall-who-stands-gain-ice-expands.     

Bureau of Justice Assistance Monograph U.S. Department of Justice, https://www.ojp.gov/pdffiles1/bja/181249.pdf. 

State action doctrine, Legal Information Institute, https://www.law.cornell.edu/constitution-conan/aconditionsconditionsconditionsmendment-14/state-action-doctrine. 

What Trump’s victory means for the private prison industry Brennan Center for Justice (2022), https://www.brennancenter.org/our-work/analysis-opinion/whain t-trumps-victory-means-private-prison-industry. 

Private prison operator CoreCivic saw a 55% increase in immigration detainee contracts • Tennessee Lookout, https://tennesseelookout.com/2025/11/06/private-prison-operator-corecivic-saw-55-increase-in-immigration-detainee-contracts/. 

Vacant prison to reopen as ICE detention center in early 2026, News9.com (2025), https://www.news9.com/oklahoma-city-news/vacant-prison-to-reopen-as-ice-detention-center-in-early-2026. 

133, Supreme Court considers private prison case Brennan Center for Justice (2025), https://www.brennancenter.org/our-work/analysis-opinion/supreme-court-considers-private-prison-case.