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Investing.com -- Shares of Geo Group (NYSE:GEO) and CoreCivic (NYSE:CXW) rose in premarket trading Monday after Congress passed President Donald Trump’s sweeping tax and spending bill, which significantly increases funding for immigrant detention.
Geo Group jumped as much as 7.4%, while CoreCivic gained 2.7% by 06:23 ET (10:23 GMT).
The two companies are the largest private contractors operating U.S. immigration detention centers.
The new legislation will triple federal spending on immigrant detention, allocating $45 billion over the next four years—more than was spent during the Obama, Biden, and first Trump administrations combined, according to federal data.
The bill also earmarks $46.5 billion for continued construction of the U.S.-Mexico border wall and $6 billion for surveillance and border technology, alongside a broader package of immigration enforcement measures.
Officials at U.S. Immigration and Customs Enforcement said the funding would allow them to roughly double detention capacity to 100,000 beds, expanding their ability to detain undocumented immigrants.
The agency’s average daily detainee population reached 56,000 last month, the highest on record since it began disclosing those figures during the first Trump term.
“This bill will make our communities safer by making a historic investment in our border security,” said Rep. Addison McDowell on the House floor. “No more dangerous illegal aliens parading around with no consequences.”
The U.S. immigrant detention system, the largest globally, has expanded over four decades to hold undocumented immigrants awaiting asylum or deportation proceedings. Traditionally focused on border crossers deemed flight risks or those with criminal charges, the population profile is shifting.
ICE has already awarded new or expanded contracts this year to at least nine facilities operated by Geo Group and CoreCivic, along with others managing tent-based detention centers.
Lawmakers have criticized the agency’s recent spending, with the House Appropriations Committee calling it “budgetary mismanagement” after funds exceeded ICE’s budget and had to be redirected from other departments.
Geo and CoreCivic say they have 14 unused prisons across several states that could accommodate thousands of additional detainees. Hiring is already underway in some locations.
Meanwhile, immigrant rights groups are urging the government to stop expanding contracts with these firms, citing concerns over safety and medical care standards in their facilities.