ICE Sets $38.3 Billion Plan to Convert Warehouses into Vast Detention Centers

Immigration and Customs Enforcement, part of the Department of Homeland Security, plans to spend $38.3 billion to convert warehouses and other non-traditional buildings into large detention centers across the US. The effort, called the Detention Reengineering Initiative, seeks to create space for nearly 100,000 people awaiting deportation. Documents released this week show the agency will buy and renovate eight mega centers, add 16 processing sites, and take over 10 existing facilities by the end of fiscal year 2026.

Background

The US has seen a sharp rise in immigration enforcement under the current administration. ICE now holds about 70,000 people in 225 jails and centers, almost double last year's numbers. Private companies like GEO Group and CoreCivic, which run many of these sites, reported record revenues last year—$2.6 billion for GEO and $2.2 billion for CoreCivic. They have expanded facilities and reactivated old ones to meet demand.

This new plan builds on Congress's approval of the One Big Beautiful Bill Act, which provides billions for immigration enforcement. ICE wants to shift from renting space from private firms to owning and renovating its own buildings. The focus is on warehouses because they offer large, open spaces that can be quickly turned into holding areas. Right now, only 21 of ICE's 220 facilities can hold more than 1,000 people. The biggest one, in El Paso, Texas, averages under 3,000 detainees.

Local communities have noticed the changes. In places like California and Texas, ICE is eyeing new spots where no centers exist. Companies say they can add beds for 19,000 more people if needed. GPS monitoring for immigrants not in custody has also grown, from 17,000 to over 42,000 people this year.

Key Details

The $38.3 billion covers buying eight large centers, each able to hold 7,000 to 10,000 people for about 60 days before deportation. The 16 processing sites will house 1,000 to 1,100 people for 3 to 7 days. Together, they aim for 92,600 beds total. ICE will use contractors to run the sites but own the buildings.

Merrimack, New Hampshire Example

One site is a 324,395-square-foot warehouse at 50 Robert Milligan Parkway in Merrimack, New Hampshire. DHS plans to invest $158 million there, with $300 million over three years for retrofitting and operations. It will hold 400 to 600 people.

The project promises economic boosts: 1,252 jobs during retrofit, $119 million in labor income, $151.3 million to gross domestic product, $279.3 million in output, and $31.2 million in taxes. Ongoing operations could support 265 jobs a year, $36.6 million in wages, $59.8 million to GDP, $68.7 million in output, and $10.7 million in taxes.

New Hampshire Governor Kelly Ayotte's office asked for details after a Senate hearing. Documents went public on the governor's website.

“After my office inquired about the economic impact study following today’s Senate hearing, DHS has now for the first time distributed the document,” Ayotte said. “Once the document was received, we immediately shared it with the Town of Merrimack. We are publishing this document on my website for the public to find.”

Other states face similar plans. Senator Roger Wicker from Mississippi wrote to Homeland Security Secretary Kristi Noem, opposing a warehouse purchase there. He cited concerns over infrastructure and lost private investment.

Private firms are adapting. GEO Group, with limited warehouse experience, called it complicated but is taking part. CoreCivic and others see growth from ICE's needs.

What This Means

The plan will reshape how the US handles immigration detention. Mega centers could speed up deportations by holding more people in fewer, larger sites. This matches goals to remove millions from the country. Owning facilities might cut long-term costs compared to renting, though upfront spending is huge.

Local effects vary. Jobs and income could help some towns, like Merrimack. But pushback is strong. Protests and public meetings have happened nationwide. Officials worry about strains on roads, water, power, and services for thousands in one spot. Communities battle to block sites, saying they hurt quality of life and economic plans.

For ICE, the shift means better control over custody and removals. Processing sites will handle short stays, while big centers focus on long-term holds before flights out. Contractors will still manage daily operations, building on their recent revenue gains.

The initiative runs through fiscal year 2026. Renovations take time due to the complex setup of enforcement actions. ICE says the facilities will ensure safe and humane detention during mass deportations. As sites roll out, debates over costs, capacity, and community impact will continue.