Jun 22, 2026
The Department of Homeland Security is backing away from one of its most controversial detention expansion efforts after spending more than $1 billion on the project.
According to documents obtained by the New York Times, Immigration and Customs Enforcement (ICE) is now planning on offloading at least seven of the 11 warehouses it purchased nationwide for conversion into immigration detention centers. The facilities, which cost more than $700 million, will either be given to other federal agencies or will be sold off.
Advertisement
The warehouses were purchased during former Homeland Security Secretary Kristi Noem’s time in office. The new secretary, Markwayne Mullin, has said he wants the agency to be more private about its enforcement and wants deportations to happen more quickly.
“[They] should be removed at lightning speed, not housed on American soil at the taxpayer’s expense,” the Homeland Security Department said in a statement to the New York Times. “D.H.S. is moving swiftly to utilize EXISTING detention space with our state and county partners.”
The move represents a significant shift from the agency’s $38.3 billion ICE Detention Reengineering Initiative, which was designed to create a nationwide network of government-owned detention facilities capable of holding nearly 100,000 immigrants awaiting deportation. The project was meant to not only increase capacity, but reduce the government’s reliance on jails and private contractors.
The expansion effort comes amid years of scrutiny over conditions inside immigration detention facilities. Investigations, lawsuits and detainee accounts have alleged problems ranging from overcrowding and poor sanitation to inadequate medical care and unsafe living conditions.
Now, with the decision to sell the warehouses, the future of the initiative and its massive budget is unclear.
At this stage, it appears the agency will be moving forward with warehouses purchased in San Antonio and Socorro, Texas; Surprise, Ariz.; and Hagerstown, Md.
Advertisement
The Maryland project is already facing legal hurdles. A judge recently barred ICE from moving forward with plans for the roughly $100 million facility until environmental testing is completed. Similar rulings were issued for warehouse projects in New Jersey and Michigan, both of which ICE now reportedly plans to offload.
ICE’s spending spree
The 11 facilities were purchased following a massive funding increase for immigration enforcement included in President Donald Trump’s One Big Beautiful Bill. The legislation included $170 billion in additional funding for immigration and border related activities, including $30 billion to ICE for detainment and $45 billion to build new detention facilities.
The injection of taxpayer money made ICE one of most expensive police forces in the world and the highest-funded U.S. law enforcement agency.
During Noem’s tenure, the DHS launched an aggressive spending campaign that included a $220 million ad and recruitment plan. She also faced criticism over allegations the department spent $172 million in taxpayer funds on the use of two luxury jets.
Trump fired Noem in March amid growing scrutiny of her spending and management practices. The DHS has reportedly launched a sprawling investigation into how contracts were handled during her time in office.
Advertisement
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
The future of the facilities
What will happen with the four remaining warehouse projects remains unclear.
The move to sell seven locations comes after months of fierce debate over the warehouse strategy. Supporters argued the facilities would help accelerate Trump’s mass deportation agenda by dramatically increasing the number of immigrants ICE could detain while awaiting removal proceedings.
Critics, including local residents and elected officials in communities where the warehouses were purchased, have voiced concern over the toll facilities will have on local economies and resources. Environmental and safety concerns also fueled legal challenges, with opponents questioning whether industrial warehouse buildings could be safely converted into large-scale detention centers.
DHS has argued that utilizing existing detention space through partnerships with state and local governments will be more cost-effective than building an entirely new network of federally owned facilities.
The agency, however, has not disclosed how much taxpayer money it expects to recover through the sale or transfer of the properties, or what the retreat from the warehouse strategy means for the long-term future of its $38.3 billion detention reengineering plan.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Rinna Diamantakos is an assigning editor at Moneywise.com. A versatile journalist, she has experience as a writer, editor and producer. Her work has focused on politics, business and financial news.
