You’ve probably heard the rumors. Maybe you’ve seen the headlines about how the federal government "banned" private prisons, and you figured the whole industry was packing its bags. Honestly? That's not even close to what's actually happening on the ground.
While it's true that the Biden administration made a big show of Executive Order 14006 back in 2021—aiming to stop the Department of Justice from renewing contracts with for-profit jailers—the reality is a lot messier. As of January 2026, private jails in America aren't just surviving; in many corners of the country, they are absolutely thriving.
This isn't just about "bad guys" and "lock and key." It’s a multi-billion dollar business. When you look at the books for the big players like CoreCivic and The GEO Group, you aren't looking at a dying industry. You’re looking at corporations that just reported revenues in the hundreds of millions for the last quarter alone.
The Loophole Large Enough to Drive a Bus Through
Here is the thing most people get wrong: the federal "ban" only applied to the Department of Justice (DOJ). It didn't touch Immigration and Customs Enforcement (ICE).
That’s a massive distinction.
According to data from the Sentencing Project and the ACLU, nearly 80% of people in immigration detention are held in facilities owned or run by private companies. When the DOJ stopped using a private facility for federal inmates, those same companies often just turned around and signed a new contract with ICE. Same building, different logo on the paperwork.
It's basically a shell game.
Why some states are doubling down
While states like California and Illinois have moved to ban for-profit lockups, others are leaning in. Take Montana, for example. Recent reports show that roughly 50% of its prison population is housed in private facilities. In New Mexico and Tennessee, that number hovers around 30%.
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Why? It’s usually about the bottom line. Small counties are often broke. When a company like CoreCivic offers to build a jail, provide jobs, and take the administrative headache off the local sheriff's plate, it's a tempting deal.
But "cheap" usually comes with a hidden price tag.
The Cost of Cutting Corners
If you're running a jail to make a profit, there are only a few ways to squeeze out more money: you either charge the government more or you spend less on the people inside.
Most of these companies choose the latter.
Research published in Frontiers in Communication and various studies by the Bureau of Justice Statistics highlight a recurring pattern. Private facilities often have lower staff-to-inmate ratios than state-run prisons. They pay their guards less—sometimes significantly less—which leads to astronomical turnover rates.
When you have a constant revolving door of under-trained, underpaid staff, things get dangerous.
- Violence: Rates of inmate-on-inmate and inmate-on-staff assaults are frequently reported as higher in private facilities.
- Medical Care: This is the big one. There are countless documented cases of "medical neglect" because providing specialized care for a chronic illness eats into the quarterly earnings.
- Food Quality: It’s exactly as bad as you’d imagine.
There's a famous undercover report by journalist Shane Bauer, who spent four months working as a guard at a private prison in Louisiana. He documented a world where "safety" was a secondary concern to "occupancy." It’s a grim read, but it perfectly illustrates the tension between human rights and a fiduciary duty to shareholders.
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The Myth of the "Innocent" Jail
We often use the words "prison" and "jail" interchangeably, but they are different. Jails are usually for people awaiting trial—people who haven't been convicted of a crime yet.
The Prison Policy Initiative points out that the vast majority of people in local jails are legally innocent. When you privatize that part of the system, you are literally profiting off the detention of people who may very well be cleared of all charges next month.
Does that sit right with you? For most people, it doesn't.
What about recidivism?
The big selling point for privatization in the 80s and 90s was that "the private sector does it better." They claimed they could rehabilitate people faster and cheaper.
The data says otherwise.
Multiple studies, including research from the Brookings Institution, show that private jails don't actually lower recidivism rates. In fact, some data suggests people coming out of private facilities are more likely to end up back behind bars. This makes sense if you think about it: if your business model depends on "beds being full," why would you invest heavily in programs that ensure they stay empty?
How to Actually Navigate This
If you’re concerned about the role of for-profit incarceration in your community, you aren't powerless. The industry relies on quiet contracts and lack of public oversight.
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1. Check the Contracts
Most people don't realize their county might be "renting" jail space to or from a private company. Use public records requests (FOIA) to see where your local tax dollars are going. If your county has an "intergovernmental agreement" (IGA) with a private firm, that’s where the money is moving.
2. Follow the Lobbying Money
Companies like GEO Group and CoreCivic are major political donors. They don't just build jails; they lobby for "tough on crime" legislation that keeps those jails full. Websites like OpenSecrets can show you exactly which local and state politicians are taking money from the private prison industry.
3. Support Transparency Legislation
One of the biggest issues with private jails in America is that they aren't subject to the same transparency laws as public ones. They can often hide their internal incident reports and staffing numbers under the guise of "proprietary business information." Supporting laws that force these companies to open their books is a massive first step.
4. Diversification of Investment
If you have a 401k or a mutual fund, there is a decent chance you are inadvertently an "owner" of these jails. Many ESG (Environmental, Social, and Governance) funds specifically exclude private prison stocks. Checking your portfolio is a practical way to pull your individual support from the model.
At the end of the day, the debate over private jails isn't just a political talking point. It’s a question of what we value more: a lower tax bill or a justice system that actually produces justice. As long as there's a profit to be made on a "per-bed" basis, the incentive will always be to keep those beds occupied. Changing that requires more than just an executive order; it requires a fundamental shift in how we think about crime and punishment.
The industry is adapting, shifting into "re-entry services" and "electronic monitoring" to stay relevant. It’s not going away—it’s just changing clothes. Staying informed is the only way to keep up.