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The federal shutdown of private prisons only affects a fraction of inmates

More than 91,000 U.S. inmates are housed in state prisons, which will be untouched by the DOJ's decision.

by Brendan James
Aug 18 2016, 6:20pm

In this June 15, 2010 file photo, the Idaho Correctional Center is shown south of Boise, Idaho, operated by Corrections Corporation of America. (AP Photo/Charlie Litchfield, File)

News that the federal government is rolling back its dealings with private prisons was a big enough deal on Thursday that it sent Corrections Corp stock plummeting within 60 seconds.

It's no small thing: the government's decision to decline or let expire contracts with the 13 private prisons across the country will affect about 40,000 inmates held inside, according to a 2014 report by the Bureau of Justice Statistics.

But this move only affects a fraction of inmates locked up by the private sector: the same report shows over 91,000 are housed in state prisons, which will be untouched by the DOJ's decision. The BJS report does not include private county prisons.

Nor will the decision touch the private detention operations of the Immigration and and Customs Enforcement (ICE), which is housed under the Department of Homeland Security, a bigger client to the private prison industry than the DOJ. ICE is under a mandate to hold 34,000 detainees at a time, and corporations oversee 62 percent of ICE's detention beds.

A damning report by the Inspector General a week ago found private inmates get worse treatment, fewer resources, and shabbier conditions than their counterparts in publicly-run prisons.

"I would still say this is an historic day and may mark a turning point," said Bob Libal, executive director at Grassroots Leadership, a civil rights group that studies and organizes to end private prisons.

"I hope it's one of many big days to come," he added.

Follow Brendan James @deep_beige

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