DHS Watchdog Launches Probe Into Massive ICE Detention Spending Program

Federal investigators are now scrutinizing a multibillion-dollar ICE detention expansion program approved under former Homeland Security Secretary Kristi Noem, raising new questions about how taxpayer money was spent during one of the administration’s most aggressive immigration enforcement pushes.

According to reports, the Department of Homeland Security Office of Inspector General has opened an investigation into whether ICE properly purchased and converted vacant commercial properties into detention facilities “in a cost-effective manner” while still meeting operational needs. The program, heavily supported by Noem and senior adviser Corey Lewandowski, focused on buying empty warehouse properties and transforming them into detention centers for illegal immigrants.

So far, ICE has reportedly spent roughly $1 billion acquiring 11 vacant warehouse properties. The broader initiative received as much as $45 billion in congressional funding through the One Big Beautiful Bill signed by President Trump earlier this year, with the money earmarked for expanding detention capacity for single adults and family residential facilities.

The purchased properties reportedly came from major financial firms and investment groups including Goldman Sachs and the Carlyle Group. Rather than leasing existing detention space from private prison operators, the department pursued direct ownership of commercial real estate assets as part of the strategy.

Real estate analytics firm CoStar alleged in a March report that the federal government may have paid between 11% and 13% above market value for comparable properties. Additional concerns emerged after reports that several companies receiving related federal contracts had little or no prior experience handling immigration or detention-related projects.

Following Noem’s departure from DHS, new Homeland Security Secretary Markwayne Mullin reportedly moved to halt additional spending tied to the warehouse conversion initiative while the department reevaluates the program.

A DHS spokesperson said the agency is reviewing policies and proposals during the leadership transition and emphasized that Secretary Mullin intends to work closely with local communities while carrying out President Trump’s immigration agenda.

The inspector general inquiry also comes on the heels of another federal review examining hundreds of millions of dollars in contracts approved under Noem and Lewandowski during fiscal year 2025, including several controversial no-bid agreements that have drawn increasing attention from watchdog officials.