ICE Detention Plans Halted
Trump Administration Scraps Plans for New ICE Detention Warehouses Following Public Controversy
The Trump administration is walking back one of its most ambitious immigration enforcement bets. ICE bought 11 commercial warehouses in early 2026 for roughly $1.074 billion, planning to convert them into massive detention centers. Now, at least seven of those sites are being offloaded, according to The New York Times.
The reversal marks a striking admission of failure. New DHS Secretary Markwayne Mullin told the House Appropriations Committee in June 2026 that the original plan had a "lack of due diligence" and that several sites simply "won't work" for housing human beings, according to PBS News.
ICE's $1 Billion Buying Spree Went Wrong Fast
Between January and March 2026, ICE purchased warehouses across Georgia, Michigan, Utah, New Jersey, Pennsylvania, Maryland, Arizona, and Texas. The goal was sweeping: replace the current network of 200-plus contractor-run jails with 34 federally owned "mega-sites," each holding up to 10,000 detainees. The target was a national daily capacity of 100,000 beds, according to CoStar News.
The plan had a champion in former DHS Secretary Kristi Noem, who framed the warehouses as a way to "rapidly expand capacity" for mass deportations. But the strategy ran into a wall almost immediately. ICE paid an 11% to 13% premium above market rate for the properties — and over 30% in some markets — according to CoStar News. Critics said taxpayers were essentially bailing out commercial real estate owners during a logistics market downturn.
An Unlikely Coalition Killed the Warehouse Idea
Opposition came from an unexpected mix of voices. Liberal human rights groups called the plans cruel. But conservative local officials also pushed back hard, worried about the strain on local sewer, water, and emergency services. Seven federal lawsuits were filed by states and municipalities to block the expansion, according to Newsmax.
In Michigan, Attorney General Dana Nessel called the Romulus warehouse plan an "abomination" that was "ill-conceived as it was cruel." Rep. Mike Collins, a Georgia Republican, broke with the administration to kill the Social Circle facility. In Romulus, Rep. Rashida Tlaib introduced the "Ban Warehouse Detention Act" in April 2026, according to PBS News. Former ICE official Claire Trickler-McNulty described the whole effort as "wildly foolhardy," noting that industrial zones lack the medical and legal infrastructure detention requires.
Four Sites Survive, Seven Go Up for Sale
Of the 11 warehouses purchased, four will stay in federal hands — though with scaled-back plans. San Antonio, TX is moving forward despite lawsuits. Surprise, AZ is slated for a $150 million retrofit. Hagerstown, MD remains mostly paused due to a court injunction. The Socorro, TX site is being re-envisioned as an "ICE Campus" with offices and training space rather than mass detention, according to CoStar News.
The seven sites being sold represent roughly $700 million in assets, according to The New York Times. Federal officials formally notified a judge on June 23, 2026, that the Romulus warehouse would be sold. Communities like Social Circle and Romulus are now hoping the returned properties will restore local tax revenue, according to CBS News.
Billions Spent, Billions More Still Sitting Unspent
The financial picture is hard to square. Congress gave ICE $75 billion through the 2025 "One Big Beautiful Bill Act" to overhaul detention. ICE and CBP are reportedly sitting on $95 billion in unspent funds, according to the Senate Budget Committee. Yet President Trump signed another $70 billion immigration enforcement bill in June 2026.
With the warehouse model collapsed, ICE is expected to return to long-term contracts with private prison operators like GEO Group and CoreCivic, according to CoStar News. The first acting ICE director under this plan, Todd Lyons, had famously described the warehouse system as "[Amazon] Prime, but with human beings," according to The Washington Post. That vision is now shelved — at a cost of over a billion taxpayer dollars.
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