Private prisons poised to reap billions as Laken Riley Act passes Congress

Corporate interests dominate immigration policy under new legislation.

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Quick summary

• The Laken Riley Act, passed by Congress, mandates federal detention of undocumented immigrants accused of even minor crimes.

• Critics, including Rep. Alexandria Ocasio-Cortez, argue the bill benefits private prison companies at taxpayer expense, with a price tag of $83 billion.

• The Act expands mandatory detention, allowing incarceration based on accusations without evidence or due process.

• Private prison stocks have surged, with companies like GeoGroup and CoreCivic seeing significant gains since Trump’s return to office.

• Trump reversed a 2021 Biden executive order to phase out federal private prison contracts, increasing ICE’s reliance on for-profit detention facilities.

• Advocacy groups and lawmakers have condemned the bill as a “sweetheart deal” for private prison executives profiting from the system.

• Detention centers are criticized for human rights abuses, inefficiencies, and detaining individuals who overwhelmingly lack criminal records.

In a controversial move, Congress has passed the Laken Riley Act, a sweeping piece of legislation that expands mandatory immigration detention under the guise of public safety. Advocates warn that the new law, named after a Georgia nursing student killed by an undocumented immigrant, is a lucrative boon for private prison companies, making billions off the detention of immigrants accused of even minor infractions.

The bill passed with bipartisan support: 263-156 in the House and 64-36 in the Senate. Forty-six Democrats joined Republicans in the House vote, and twelve Senate Democrats voted in favor of the measure. With President Donald Trump’s signature on Wednesday, the Laken Riley Act became the first piece of legislation enacted in his second term.

U.S. Rep. Alexandria Ocasio-Cortez (D-N.Y.), one of the most vocal critics of the bill, denounced it on the House floor, declaring, “It’s corruption in plain sight.”

The Laken Riley Act goes far beyond existing immigration laws by mandating detention for individuals accused of minor crimes, such as shoplifting. Critics point out that accusations alone are enough to trigger detention, without evidence or a conviction. The legislation removes due process protections, barring detainees from requesting bond hearings and allowing indefinite detention until they either win their immigration case—often a years-long process—or accept deportation.

“These are the people who want you to believe that they’re trying to quote-unquote ‘keep criminals off the streets,’ when they are opening the floodgates,” Ocasio-Cortez said, highlighting the bill’s potential for abuse. “If a person is so much as accused of a crime… they will be rounded up and put into a private detention camp.”

The price tag of the act is staggering, with an estimated $83 billion in additional taxpayer funding required to implement its provisions. Critics argue that the law prioritizes corporate profits over public safety, funneling vast sums of money to private prison companies.

The private prison industry stands to be the biggest beneficiary of the Laken Riley Act. Over 90% of individuals held in U.S. Immigration and Customs Enforcement (ICE) custody are detained in private facilities, according to the American Civil Liberties Union. These facilities have long been criticized for rampant human rights abuses, including forced labor, sexual assault, and preventable deaths.

Since Trump’s election victory in November, private prison stocks have soared. GeoGroup, one of the largest contractors for immigration detention, has seen its stock price rise by over 127 percent. Competitor CoreCivic has experienced a 63 percent increase. Industry insiders, including CoreCivic’s COO, have openly celebrated the influx of government contracts as a “value proposition” for shareholders.

Aaron Reichlin-Melnick, senior fellow at the American Immigration Council, noted on social media that ICE is preparing to double its detention capacity, opening 18 new facilities. “That would likely mean tens of billions in taxpayer funds sent to private prison companies. They are salivating,” he wrote.

Advocacy groups warn that the act will exacerbate existing human rights violations in the immigration detention system. Anthony Enriquez, vice president of U.S. advocacy and litigation at Robert F. Kennedy Human Rights, described the legislation as a “sweetheart deal for the private prison industry.” He criticized the law for using the tragedy of Laken Riley’s murder as a pretext for draconian policies that will disproportionately harm immigrants and communities of color.

Mandatory detention has long been criticized for its inefficiency and inaccuracy. Data from ICE revealed nearly 1,500 instances of American citizens being wrongfully detained. Over 60 percent of those in immigration detention have no criminal record, and most of the remaining detainees are convicted of nonviolent offenses, such as traffic violations.

“Mandatory detention requires immigration officials to lock up people without any suspicion that they are a danger to the community or a flight risk,” Enriquez explained. “It hasn’t brought safety, efficiency, or decency—only profits for private prison executives.”

The passage of the Laken Riley Act follows Trump’s reversal of a 2021 executive order issued by former President Joe Biden to phase out federal contracts with private prisons. Although Biden’s order had limited impact—more than 90 percent of ICE detainees were still housed in private facilities in July 2023—it signaled an effort to move away from the for-profit detention model.

The Laken Riley Act entrenches the role of private prisons in U.S. immigration enforcement, expanding their reach and influence. Critics argue that this shift prioritizes corporate interests over the well-being of immigrant communities.

Ocasio-Cortez urged Americans to pay attention to the financial motives behind the legislation. “Look at what members of Congress are invested in private prison companies who receive this kind of money and look at the votes on this bill,” she said. “It is atrocious that people are lining their pockets with private prison profits in the name of a horrific tragedy and the victim of a crime.”

Advocates are calling for increased transparency and oversight in the immigration detention system. They emphasize the need for reforms that uphold human rights and address the root causes of migration, rather than punitive measures that funnel public funds into private profits.

To better understand the Laken Riley Act, visit the American Immigration Lawyers Association

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