The U.S. Department of Homeland Security purchased two major ICE detention facilities in California from private prison company CoreCivic for $1.5 billion, with the deal closing July 2. DHS paid $739.2 million for the 1,994-bed Otay Mesa Detention Center in San Diego County and $732.6 million for the 2,560-bed California City Detention Facility in Kern County. CoreCivic will continue operating both sites under existing ICE contracts — California City's running through August 2027 and Otay Mesa's through December 2029 with a possible extension — while using proceeds from the sale mainly to pay down company debt. The acquisition is part of the federal government's broader strategy to expand detention capacity and reduce reliance on private prison contractors through the ICE Detention Reengineering Initiative.