CoreCivic announced an agreement to resume operations and care for up to 2,400 individuals at the South Texas Family Residential Center in Dilley, Texas, under an amended intergovernmental services agreement (IGSA) with the City of Dilley and U.S. Immigration and Customs Enforcement (ICE). The facility was idled in August 2024 after its prior contract was terminated.
The amended IGSA is set to expire in March 2030 and includes a fixed monthly payment schedule correlating with the activation of each neighborhood within the facility. Once fully activated, the facility is expected to generate approximately $180 million in total annual revenue, which includes onsite medical services.
CoreCivic began pre-activation activities earlier this year, and the award is anticipated to be accretive to earnings starting in the second quarter of 2025. This resumption of operations at a purpose-built facility for family populations signifies a significant win for CoreCivic, leveraging its available bed capacity to meet increased federal demand.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.