TL;DR: ICE wants \~100k detention beds (from \~70k). Plan A — $1.1B on 11 warehouse conversions — is stalled: 0 of 11 sites operating, and DHS Secretary Mullin told House Appropriations on Jun 25 that DHS is "evaluating all 11" purchased warehouse sites while acknowledging a bed shortage. Plan B: buy \~10 turnkey centers from CoreCivic ($CXW) and GEO ($GEO) — 20k+ idle beds combined, with active DHS sale talks per both companies' Q1 calls and Axios reporting. The Secure America Act (\~$70B through FY2029) was signed Jun 10. Benchmark raised CXW PT $28 → $36 on Jun 26, citing 80% probability of 2 facility sales → \~$680M after-tax (debt paydown + buybacks). Long CXW and GEO — GEO looks like the laggard on the same thesis.
The administration's stated target is \~100,000 ICE detention beds.
Plan A: buy warehouses and convert them (\~$1.1B across 11 sites).
Public reporting says that plan is failing:
\- None of the 11 warehouse sites operate as detention centers (\[Axios, May 7, 2026\]([https://www.axios.com/2026/05/07/ice-immigrant-detention-private-contractors](https://www.axios.com/2026/05/07/ice-immigrant-detention-private-contractors)))
\- Local pushback, litigation, and officials blocking sites in multiple jurisdictions
\- At the Jun 25, 2026 House Appropriations DHS oversight hearing, Mullin said DHS is "evaluating all 11" purchased warehouse sites and acknowledged a bed shortage (\[C-SPAN\]([https://www.c-span.org/event/house-committee/homeland-security-secretary-mullin-testifies-on-dhs-oversight/444301](https://www.c-span.org/event/house-committee/homeland-security-secretary-mullin-testifies-on-dhs-oversight/444301)))
Plan B: ICE buys turnkey facilities from private operators that already own built capacity. Axios (May 7) reported ICE is in talks to purchase \~10 turnkey facilities from its largest vendors, with GEO CEO Zoley citing a possible Q2–Q3 2026 sales window.
\## Why $CXW and $GEO
CXW (CoreCivic)
\- Largest non-government owner of correctional/detention facilities
\- \~7,066 idle beds across 5 facilities (Q1 2026 call)
\- CEO Swindle: active DHS sale discussions
\- Benchmark $36 PT (Jun 26, 2026; was $28)
\- \~+54% YTD per Investing.com/Benchmark coverage
GEO (Geo Group)
\- Hosts \~25k ICE beds (\~25% of ICE network)
\- \~6,000+ idle beds across 6 former federal prisons (Q1 2026 call)
\- CEO Zoley: multi-facility sale discussions
\- Same thesis — read-through if CXW closes sales first
\- Check live quote (moves with detention-policy beta)
Both companies have said they would sell turnkey assets at depreciated replacement cost (per Q1 earnings calls and Axios).
Recent catalysts (Jun 2026)
\- Jun 4 — ICE sole-source notice for Prairie/CoreCivic, up to 1,600 beds (SAM.gov / procurement reporting)
\- Jun 10 — Secure America Act signed (PL 119-98), \~$70B for ICE/CBP/DHS through FY2029 (\[Congress.gov\]([https://www.congress.gov/bill/119th-congress/senate-bill/2](https://www.congress.gov/bill/119th-congress/senate-bill/2)))
\- Jun 25 — Mullin Appropriations testimony: warehouse sites under review, bed shortage cited (\[C-SPAN\]([https://www.c-span.org/event/house-committee/homeland-security-secretary-mullin-testifies-on-dhs-oversight/444301](https://www.c-span.org/event/house-committee/homeland-security-secretary-mullin-testifies-on-dhs-oversight/444301)))
\- Jun 26 — Benchmark raises CXW PT $28 → $36 (Buy maintained); 80% / \~$680M facility-sale scenario (\[Investing.com\]([https://www.investing.com/news/analyst-ratings/benchmark-raises-corecivic-stock-price-target-on-detention-demand-93CH-4762738](https://www.investing.com/news/analyst-ratings/benchmark-raises-corecivic-stock-price-target-on-detention-demand-93CH-4762738)))
Funding (Jun 10): multi-year appropriations reduce the recurring "will Congress fund detention beds this year?" uncertainty that slowed procurement during the earlier DHS shu