Marina
CoreCivic has entered into a new $60 million annual contract with Immigration and Customs Enforcement (ICE) to house migrant detainees at its Leavenworth, Kansas, facility. However, the deal cannot be activated until pending legal disputes are resolved.
The contract, which was officially announced on September 7, replaces a temporary six-month ICE agreement that began on March 7.
Contract Structure and Facility Capacity
The updated contract includes a fixed monthly payment, along with additional revenue determined by the number of detainees held at the facility. The Leavenworth center has a maximum capacity of 1,033 detainees.
According to CoreCivic’s statement, the agreement will only begin once the temporary injunction issued by a Kansas district court is lifted.
Ongoing Legal Battle with the City of Leavenworth
At the center of the dispute is whether CoreCivic, based in Nashville, Tennessee, must comply with the city’s development process and apply for a special use permit before reopening the detention facility.
A court order has temporarily blocked the company from accepting detainees until the legal matter is resolved. CoreCivic has filed an appeal against the ruling.
The company noted it cannot determine when or if these legal issues will be settled.
Expansion Beyond Kansas: California Facility Contract
In addition to the Leavenworth deal, CoreCivic also announced a separate ICE contract for its 2,560-bed California City Immigration Processing Center in Kern County, California. Like the Leavenworth site, this facility has been vacant in recent years.
CoreCivic President and COO Patrick Swindle stated:
“Once both facilities are fully operational, we anticipate a combined annual revenue of nearly $200 million. While the intake process at the Midwest Regional Reception Center is delayed, we are offering new employees redeployment opportunities at other active facilities until legal hurdles are resolved.”
The $60 million ICE contract signals CoreCivic’s long-term commitment to expanding its detention operations. However, with ongoing legal disputes in Kansas, the Leavenworth facility’s future remains uncertain.
Meanwhile, the company is strategically strengthening its revenue base through additional agreements, including the California City center, which could help generate nearly $200 million annually once both facilities are operational.