U.S. Immigration and Customs Enforcement announced Wednesday that it will reopen the Delaney Hall detention center in Newark, New Jersey, after signing a $1 billion contract with a private global lender, The Hill reported.
The 1,000-bed facility will be used for federal immigration processing as part of the agency's expanded enforcement efforts.
"The location near an international airport streamlines logistics and helps facilitate the timely processing of individuals in our custody as we pursue President [Donald] Trump's mandate to arrest, detain, and remove illegal aliens from our communities," acting ICE Director Caleb Vitello said in a statement.
Vitello, reassigned last Friday to oversee all field and enforcement operations, will also manage ICE's new 15-year fixed-price contract with the GEO Group, a private prison operator managing facilities nationwide.
"Our company-owned Delaney Hall Facility will play an important role in providing needed detention bedspace and support services for ICE in the Northeast," George C. Zoley, executive chairman of GEO, said of the new deal.
"We are continuing to prepare for what we believe is an unprecedented opportunity to help the federal government meet its expanded immigration enforcement priorities."
GEO sued New Jersey officials in April 2024 over a state law barring public and private entities from contracting with ICE for immigrant detention.
In 2023, a federal judge ruled that the law was unconstitutional as applied to private companies, though the case remains under review by a federal appellate court.
According to legal filings, GEO currently holds contracts with ICE to provide secure residential care services at 20 U.S. facilities, with a total capacity of about 19,000 beds.
The company plans to invest $70 million in capital expenditures to enhance its detention capabilities, including $38 million for facility renovations, $16 million for GPS tracking devices, and $7 million to expand its secure transportation fleet.
"These additional 17,000 beds include our company-owned 1,000-bed Delaney Hall facility in Newark, New Jersey," Zoley said during a Thursday earnings call.
"We expect the utilization of these additional 17,000 beds could generate between $500 million and $600 million in incremental annualized revenues with margins consistent with our secure services own facilities, which average 25% to 30%."
The contract's announcement follows former Blackwater CEO Erik Prince's presentation of a plan to the Trump administration, proposing private sector involvement in mass deportation efforts.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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