Nancy Hiemstra Examines the Economics Behind Immigrant Detention Expansion

Hiemstra documents 2025’s detention surge: 56,000+ held mid-year, capacity up from 6,785 in 1994 to 41,500+ in 2024. Federal spending totaled $3.4 billion in 2024; 2025 proposals approach $50 billion. Contracts to private firms and local governments create economic incentives that perpetuate and expand immigrant detention.

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Key takeaways
By mid-2025 over 56,000 people were held in immigrant detention, highest since the first Trump administration.
Federal spending: $3.4 billion in 2024; 2025 proposals seek nearly $50 billion to expand detention capacity.
Detention capacity grew from 6,785 beds in 1994 to 41,500+ beds in 2024, driving contractor profits.

The United States immigrant detention system is swelling again in 2025, and researcher Nancy Hiemstra says money is a big reason why. By mid-year, more than 56,000 people were held in immigrant detention—a level not seen since the first Trump administration—as federal funding and contracts expand alongside tougher enforcement. Hiemstra’s new book, Immigration Detention Inc.: The Big Business of Locking Up Migrants, argues that detention now functions as a market as much as a policy, pulling in private prison giants, local governments, and a web of vendors that profit when beds stay full.

The federal government spent $3.4 billion on immigrant detention in 2024, and proposals in 2025 seek nearly $50 billion to grow capacity and operations. Since 1994, when detention capacity stood at 6,785, the system has ballooned to more than 41,500 beds by 2024. The pace quickened after President Trump returned to the White House in January 2025, reshaping enforcement and reviving expansion plans. On April 6, 2025, immigration officials held 47,928 people in custody, up from 39,703 in January—evidence of rapid growth and strain inside facilities.

Nancy Hiemstra Examines the Economics Behind Immigrant Detention Expansion
Nancy Hiemstra Examines the Economics Behind Immigrant Detention Expansion

Detention as an Economic Engine

Hiemstra, a political geographer, and collaborator Deirdre Conlon describe the “internal economies” that form inside and around detention centers. Their research tracks how everyday operations create steady revenue for contractors: food suppliers, medical providers, transportation companies, telecom firms, commissary vendors, and more.

Private prison corporations like GEO Group and CoreCivic are the most visible players, but they are only part of a broader system of deals and subcontracts that spread across towns and counties. Local governments often enter agreements that tie a facility’s budget—and sometimes a community’s jobs—to detention contracts.

Hiemstra argues that once this money flows, it becomes hard to unwind. The result is a cycle:

  1. Institutions begin to depend on detention dollars.
  2. Pressure grows to keep beds filled.
  3. Expansion follows when federal demand rises.

That cycle, she says, normalizes detention—making it seem routine despite strong social and moral concerns. The book challenges the common claim that detention is required to manage migration or keep the public safe. Hiemstra maintains it generates insecurities and harms migrant communities while sending steady payments to a complex set of stakeholders.

Scholars and advocacy groups share those fears, warning that mass detention can dehumanize people seeking safety or a better life.

Federal records show the scale. The United States has kept the world’s largest immigrant detention system for decades, built up over many administrations. The return of aggressive enforcement in 2025 has pressed the system to expand again, with facilities topping previous highs. For official data, see U.S. Immigration and Customs Enforcement: https://www.ice.gov/detention-statistics.

Budgets, Capacity, and Political Will

Budget lines tell the story as clearly as head counts. Lawmakers and the current administration have pushed for billions more to add beds and staffing, fitting a wider move to speed arrests and custody under President Trump. Hiemstra’s work places those choices within a longer arc: since the 1990s, immigration enforcement has leaned more on detention and deportation, and each rise in funding builds new contracts, facilities, and expectations that are hard to reverse.

Capacity gains have been dramatic:

Year Detention Capacity / Counts
1994 6,785 beds
2024 41,500+ beds
Mid-2025 56,000+ people held
April 6, 2025 47,928 in custody
January 2025 39,703 in custody

Such spikes strain existing sites, pushing the use of varied facility types and accelerating plans for new centers to house growing numbers.

Hiemstra’s research also shows how contracts shape policy. When counties and companies depend on detention income, they tend to support:

  • Longer contract terms
  • Higher per-diem rates
  • Expansion plans that promise fiscal stability

This creates built-in resistance to reforms that would reduce detention—such as expanded release programs or community-based alternatives. The web of interests can influence Capitol Hill, where some lawmakers present detention growth as a practical necessity even as critics say it does not deter migration or improve security.

What Comes Next in 2025

Given current budget proposals and enforcement priorities, Hiemstra expects more growth in the short term. She and Conlon compiled a decade of research into Immigration Detention Inc. (Pluto Press), released in June 2025, and have hosted public events in New York City with plans for talks in Washington, D.C. Their aim is to widen the debate over how money steers policy.

Hiemstra is available for academic and public talks and can be reached at Stony Brook University: [email protected].

The authors argue the country needs to ask whether the goals of immigrant detention match its human cost and fiscal footprint. Their work concludes the system’s growth reflects financial incentives as much as policy choices, and that this mix can blunt calls for change. Advocacy groups and scholars echo that concern, pointing to a pattern in which more funds lead to more beds, which then demand even more funds.

🔔 Reminder
Save snapshots of ICE daily population pages and contract announcements; documented trends and timestamps are crucial evidence for advocacy, litigation, or policy briefs challenging expansion plans.

Key markers to watch in the months ahead

  • Appropriations totals for detention in the next federal budget cycle
  • Average daily population figures and weekly counts posted by ICE
  • New facility contracts with local governments and private operators

These markers will show whether the system keeps expanding or levels off. According to VisaVerge.com, close attention to budget hearings, contract renewals, and detention population updates will help communities, attorneys, and service groups plan for the rest of 2025.

Hiemstra’s broader message: immigrant detention reshapes social life, narrows public debate, and alters national identity by making custody seem ordinary. That acceptance, she warns, grows from the steady march of contracts, jobs, and vendor ties built into the system.

Her call to policymakers is clear: weigh the claimed benefits of detention against the harms to migrants and the financial commitments that lock in future growth.

With 56,000+ people in custody by mid-2025, rising budgets, and strong political backing, immigrant detention is set to remain a central—and profitable—pillar of U.S. immigration control.

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Learn Today
Immigrant detention → Government or contracted confinement of non-citizens pending immigration proceedings or removal.
Per-diem rates → Daily payment amounts paid to facilities or contractors for each detained person, driving revenue incentives.
Private prison corporations → Companies like GEO Group and CoreCivic that operate detention facilities under government contracts.
Average daily population → The average number of people held in custody daily, used to track facility utilization.
Appropriations totals → Congressional budget allocations determining federal funding available for detention capacity and operations.

This Article in a Nutshell

In 2025 the U.S. immigrant detention system surged again, with 56,000+ detained. Nancy Hiemstra shows money fuels expansion, entangling private prisons, local governments, and vendors. Her research argues detention operates as a market, creating economic incentives that normalize custody and resist reforms despite social and human costs.

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