The Hill reported that U.S. Immigration and Customs Enforcement (ICE) announced on Wednesday that it would reopen Delaney Hall, a detention facility in Newark, New Jersey, after signing a contract worth $1 billion with a private lender.
As part of its expanded enforcement efforts, the federal agency will use this 1,000-bed facility for immigration processing.
The location near the international airport simplifies logistics and facilitates the timely processing of those in our custody, as we follow President [Donald] Trump’s mandate to arrest and detain illegal aliens in our communities.
Vitello will manage ICE’s 15-year fixed-price contract with GEO Group. GEO Group is a private prison operator that operates facilities across the country.
George C. Zoley said that the Delaney Hall Facility, owned by GEO, will be a key part of ICE’s Northeast detention beds and support services.
“We continue to prepare for an opportunity that we believe to be unprecedented to help the federal Government meet its expanded immigration enforcement priority.”
GEO filed a lawsuit against New Jersey officials in April of 2024 over a law that prohibits public and private entities from contracting with ICE, as ICE is responsible for detaining immigrants.
A federal judge ruled in 2023 that the law is unconstitutional when applied to private businesses, but the case continues to be reviewed by the federal appellate court.
Legal filings show that GEO has contracts with ICE for the provision of secure residential care at 20 U.S. institutions, which have a capacity totaling about 19,000 beds.
The company will invest $70 million in capital expenditures for enhanced detention capability, including $38 million for facility renovations and $16,000,000 for GPS tracking devices. It also plans to increase its secure transport fleet by $7,000,000.
Zoley stated during an earnings call on Thursday that the Delaney Hall facility, which is owned by our company and has 1,000 beds in Newark (New Jersey), was included among these additional 17,000-bed facilities.
We expect that the use of these additional 17,000 beds could generate between $500 and $600 in annualized revenue with margins similar to our own secure services facilities, which are on average 25-30%.
The contract announcement comes after former Blackwater CEO Erik Prince presented a plan to Trump’s administration proposing the private sector’s involvement in mass deportation.
