Federal Government Paid $495M for Prison CoreCivic Offered for $75M
- Reports
- 3
- Developments
- 3
- Repetition
- 0%
New informationRepeats or wire copies
What happened
The Department of Homeland Security paid $495.6 million for a vacant prison in Appleton, Minnesota, in August. This purchase was made despite CoreCivic offering the same property to the State of Minnesota for $75 million approximately a year earlier. This price difference amounts to $420 million. Following this, Treasury Secretary Scott Bessent announced a federal crackdown in Minnesota, while Minnesota Attorney General Keith Ellison called for a congressional investigation into the purchase.
Why it matters
The massive overpayment raises questions regarding federal procurement practices and potential waste of taxpayer funds. Minnesota Corrections Commissioner Paul Schnell described the difference in price as unexplainable. The scrutiny is compounded by reports that CoreCivic and its CEO have made significant donations to President Trump.
Who's involved
- MinnesotaThe state that was offered the prison for $75 million.
- CoreCivicThe company that owned and offered to sell the prison.
- Paul SchnellThe Minnesota Corrections Commissioner who noted the overpayment was unexplainable.
- DHSThe federal agency that purchased the prison for $495.6 million.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.How it developed
Newest first. Tap a step to see who reported it.Bessent addressed questions about CoreCivic's prison deal in Minnesota.1 source
Bessent announced a federal crackdown while CoreCivic sold a prison to the state in Minnesota.1 source
Ellison called for an investigation into the federal government's purchase of a CoreCivic prison.1 source
Keep exploring
The entities involved
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Minnesota
state of the United States of America
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CoreCivic
US prison-operating company
- A facility in rural western Minnesota, which operates a defunct prison in Appleton, is involved in multi-billion dollar contracts and ships detainees to El Paso.
- CoreCivic is profiting from lucrative contracts with ICE, operating four facilities in Tennessee, and has sold lockups to the federal government.