Investing.com - Financial Markets Worldwide

GEO Group and CoreCivic stock rise on detention expansion plans

Published 07/04/2025, 20:02
© Reuters.
GEO
0.05%
CXW
-0.67%

Investing.com -- Shares of GEO Group (NYSE: GEO) and CoreCivic (NYSE: NYSE:CXW) each climbed 1% following a New York Times (NYSE:NYT) report that the Trump Administration is aiming to spend $45 billion to significantly expand immigrant detention facilities in the United States.

The report, which emerged from a request for proposals by the Department of Homeland Security's Immigration and Customs Enforcement (ICE), outlines an ambitious plan for contractors to provide a range of services including new detention facilities, transportation, and medical support. The proposal, if funded, would mark a dramatic increase in spending, exceeding the $3.4 billion allocated for ICE's entire custody operations in the last fiscal year.

The news has positively impacted the stocks of both GEO Group and CoreCivic, companies that operate detention centers. GEO Group saw a 2.1% increase for the trading session, while CoreCivic also reported gains. The proposed expansion aligns with President Trump's commitment to a mass campaign against undocumented immigration, potentially leading to a surge in demand for detention services provided by these companies.

The swift rise in stock prices reflects investor anticipation of the potential for increased revenue streams for both GEO Group and CoreCivic. The request for proposals indicates a tight deadline, suggesting the administration's urgency in moving forward with its plans, which could lead to rapid contract awards and implementation.

While the proposal itself does not guarantee funding, the sheer scale of the potential contracts has resonated with the market, as evidenced by the uptick in stock prices. As the administration continues to push its immigration policies, companies like GEO Group and CoreCivic could stand to benefit substantially from the increased federal spending on detention infrastructure and services.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.