The Commercial Appeal

For-profit prisons give big to pro-Trump groups

Companies see potential for growth under his policies

- Fredreka Schouten

WASHINGTON Private prison companies, which stand to make big gains under President Donald Trump’s tough new immigratio­n orders, have contribute­d big sums to pro-Trump groups, including the organizati­on that raised a record $100 million for his inaugurati­on last month.

GEO Group, one of the nation’s largest for-profit prison operators, donated $250,000 to support Trump’s inaugural festivitie­s, Pablo Paez, the company’s vice president of corporate relations, told USA TODAY.

That’s on top of the $225,000 that a company subsidiary donated to a super PAC that spent $22 million to help elect the real-estate magnate. Another prison operator, CoreCivic, gave $250,000 to support Trump’s inaugurati­on, congressio­nal reports filed recently show.

For-profit prison companies see the potential for significan­t growth under the Trump administra­tion and a Republican­led Congress where some lawmakers are pushing to toughen penalties for undocument­ed immigrants who are deported and then re-enter the country illegally.

This week, the Department of Homeland Security issued sweeping new instructio­ns to carry out Trump’s executive orders on immigratio­n. They require all federal agents — including Customs and Border Protection and Immigratio­n and Customs Enforcemen­t — to identify, capture and quickly deport undocument­ed immigrants.

Significan­tly for private-prison operators, the orders also require that undocument­ed people caught entering the country be detained until their cases are resolved, ending the “catch and release” program in which undocument­ed immigrants were processed by immigratio­n agents, released into the U.S. and ordered to reappear for court hearings.

The new directives call for constructi­on of more jails along the southwest border to accommodat­e the additional detainees. About 65 percent of Homeland Security detainees last year were held in privately run facilities.

“The ICE picture bodes well for the private prisons,” said Michael Kodesch, a vice president at Canaccord Genuity who tracks the industry’s financial performanc­e.

Officials with both companies say they do not push policies that would increase prison population­s.

In an email, Paez said GEO’s political activities “focus entirely on promoting the issue of public-private partnershi­ps” and said the company “does not take a position on or advocate for or against any specific criminal justice, sentencing or immigratio­n policy.”

Jonathan Burns, CoreCivic’s director of public affairs, said the inaugural donation reflected the company’s long-standing civic involvemen­t in presidenti­al inaugurati­ons.

The company, he said, has a “strict policy” against advocating for policies that would affect “the cause, the basis for or duration of an individual’s incarcerat­ion or detention.”

In recent conference calls with investors and analysts, the leaders of both firms noted the potential for growth under the new administra­tion. After Trump signed executive orders to increase immigratio­n enforcemen­t, CoreCivic CEO Damon Hininger told investors that his Nashville, Tennessee, company expected a boost in business.

“When coupled with the above-average rate of crossings along the southwest border, these executive orders appear likely to significan­tly increase the need for safe, humane and appropriat­e detention bed capacity that we have available,” Hininger said.

 ?? TOM TINGLE/THE REPUBLIC ?? Inmates exercise at the Arizona State Prison-Kingman, operated by the for-profit GEO Group, which donated $250,000 to support President Donald Trump’s inaugurati­on.
TOM TINGLE/THE REPUBLIC Inmates exercise at the Arizona State Prison-Kingman, operated by the for-profit GEO Group, which donated $250,000 to support President Donald Trump’s inaugurati­on.

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