Could prison companies get a boost from Trump's immigration policies?

The Trump management could beryllium a boon for business for backstage situation companies successful nan U.S. if nan president-elect delivers connected his committedness to ace down connected forbidden immigration. 

CoreCivic and Geo Group, nan 2 biggest backstage situation operators successful nan U.S., some statement pinch nan U.S. Immigration and Customs Enforcement (ICE) to location detained, undocumented migrants. Their stocks soared Wednesday pursuing Trump's predetermination win, pinch investors betting nan companies will spot accrued profits from a tough-on-immigration administration. 

CoreCivic, which closed astatine $13.50 a stock connected November 5, is trading astatine $22 a share, while Geo Group, which closed astatine $15 a stock Tuesday, is presently trading astatine $23.75. 

"Obviously, investors judge location is going to beryllium a important summation successful opportunity for some of these firms nether nan Trump administration," Noble Capital Markets expert Joe Gomes told CBS MoneyWatch. 

Geo Group executives acknowledged connected nan company's third-quarter net telephone Thursday that it expects nan incoming management to enact stricter separator information policies and that nan institution stands "ready to supply further resources to thief ICE meet early needs."

CoreCivic executives besides said they judge nan predetermination consequence will thrust request for its services. 

ICE is biggest customer

During Trump's first word successful office, from 2017-2021, migration detention expanded astatine grounds levels, according to an ACLU report. In 2019, ICE detained an mean of complete 50,000 group each day. At times, that number exceeded 56,000 — astir 50% much than highest levels during nan Obama administration, according to nan report. During his first word successful office, Trump expanded nan national government's usage of backstage situation companies to detain immigrants. 

As of January 2020, 81% of group detained successful ICE custody crossed nan U.S. were held successful accommodation owned aliases managed by backstage situation corporations, according to nan ACLU report. 

In his 2nd term, President-elect Trump promises a extremist displacement successful argumentation astatine nan U.S.-Mexico separator from his predecessor. That includes a promise to oversee nan largest deportation operation successful American history, which could bring importantly much business to CoreCivic and Geo Group. 

For nan first 9 months of 2024, ICE accounted for 30% of each company's revenue. 

Both Geo Group and CoreCivic said they presently person excess capacity to accommodate a larger organization of detainees. CoreCivic executives noted that they're taking steps to hole to activate further capacity to meet ICE's needs. That could see reconfiguring accommodation to accommodate a bigger intake area, they noted. 

"There is room for an uptick successful occupancy from a capacity standpoint and some companies expect an inquire from nan Trump management for much beds. The mobility is really much, and we conscionable don't cognize correct now," Wedbush Securities expert Brian Violino told CBS MoneyWatch. 

Monitoring

Geo Group besides provides monitoring services for ICE nether its Intensive Supervision Appearance Program (ISAP), a monitoring programme utilizing wearable exertion that serves arsenic an replacement to detention.

"If location is simply a finite number of beds and a important number of group are detained, which Trump is discussing successful his plans, location could beryllium an accrued usage successful this replacement to detention," Violino said.

Geo Group executives said they person nan basal exertion and staffing resources to standard up nan statement to much than respective cardinal participants, if necessary. 

Funding from Congress

The grade to which ICE expands its contracts pinch nan 2 largest backstage situation companies depends connected really large of an summation successful backing Congress authorizes. While Republicans won nan Senate mostly successful Tuesday's election, it remains to beryllium seen which statement will get power of nan U.S. House of Representatives. 

"That's a large portion of nan story, and if it's a Republican sweep, it will beryllium easier for Trump to get backing from Congress to support this cognition he's looking to do," Violino said.