Trump signed an executive order on Monday reversing a Biden-era policy that barred the Department of Justice from renewing contracts with private prison companies. This move reopens the door for private prison firms like GEO Group and CoreCivic to house federal inmates, marking a significant shift in criminal justice policy.
The Biden administration had implemented Executive Order 14006 in 2021, instructing the Justice Department to phase out its reliance on privately operated prisons. By the time Biden left office, this policy had significantly reduced the use of private facilities for federal inmates, affecting roughly 14,000 individuals housed in such prisons. Trump’s new order, however, allows for the Justice Department to reenter contracts with private prison operators, a move welcomed by the private prison industry.
The change was not unexpected. GEO Group’s executive chairman, George Zoley, had anticipated the reversal following Trump’s 2024 election win. On a third-quarter investor call the day after the election, Zoley stated, “We kind of get the sense [that Trump] will reverse all of the Biden executive orders on Day One.” Trump’s nominee for attorney general, Pam Bondi, also has ties to the industry, having previously lobbied on behalf of the GEO Group.
The decision directly impacts the federal Bureau of Prisons, which oversees more than 150,000 individuals in custody. Private prisons have been part of the federal system since the 1980s, originally used to house inmates with specialized needs and undocumented individuals. Trump’s reversal also clears the way for private prison corporations to sign new contracts with the U.S. Marshals Service, which manages more than 60,000 people under its supervision.
Although the Biden administration attempted to reduce reliance on private prisons, some of its directives had loopholes. For example, private prison companies maintained contracts through intergovernmental services agreements, where counties act as intermediaries to house individuals on behalf of the U.S. Marshals Service. Critics argued this workaround undermined Biden’s policy, while proponents claimed it was necessary to ensure detainees remained close to courthouses, avoiding higher transportation costs.
Trump’s reversal does not extend to private firms operating immigrant detention centers. U.S. Immigration and Customs Enforcement (ICE) continues to contract with private companies to house undocumented individuals in a mix of public and privately operated facilities.
The decision has drawn sharp criticism from criminal justice reform advocates, who argue that private prisons prioritize profit over rehabilitation and humane treatment. They also point to studies suggesting that private facilities often provide poorer conditions and less oversight compared to public prisons.
Supporters of private prisons, however, say the industry plays a key role in addressing overcrowding and providing cost-effective housing for certain populations. They also argue that ending contracts with private prisons could result in logistical challenges, such as relocating detainees farther from courthouses, as previously raised by the Marshals Service.
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