Private prison stocks experienced significant gains on Monday after President-elect Donald Trump announced the appointment of Tom Homan, a former Immigration and Customs Enforcement (ICE) head, as his “border czar.”
The Geo Group saw an increase of more than 4%, while CoreCivic surged nearly 8% in premarket trading.
Homan, who led ICE during Trump’s first term, will oversee immigration enforcement across the southern and northern borders, as well as maritime and aviation security.
In a post on Truth Social, Trump stated that Homan “will be in charge of all Deportation of Illegal Aliens back to their Country of Origin.” Homan, a staunch advocate for stricter immigration policies, has vowed to execute the largest deportation operation in US history if Trump returns to office.
Analysts quoted by CNBC predict that Homan’s appointment could lead to further growth for private prison companies.
Isaac Boltansky, an analyst at BTIG, highlighted in a note to clients on November 6 that Trump’s second term would likely see a more aggressive stance on border enforcement, which would benefit firms like Geo Group and CoreCivic, particularly in their ICE-related operations.
The Trump administration is also expected to expand contracts with the US Marshals Services and the Federal Bureau of Prisons.
Who is Tom Homan?
Homan, known for championing Trump’s “zero tolerance” immigration policies during his first term, was at the center of the controversial policy that led to the separation of thousands of migrant children from their families at detention centers.
Despite the backlash, Homan has sought to downplay concerns over the potential impacts of mass deportations under Trump’s upcoming plans.
In a recent CBS News interview, he emphasized that families would be deported together, dismissing fears of widespread neighborhood sweeps or “concentration camps.”
Trump’s border czar role carries significant weight, though the specifics of the border enforcement plan remain unclear.
The effort is expected to require substantial funding and international cooperation for deportations.
However, Trump allies have indicated that his administration will swiftly reverse many of President Joe Biden’s immigration policies, using executive authority to tighten asylum application pathways.
Trump is expected to concentrate power within loyalist appointees in the White House, giving them sweeping authority over government agencies to push his agenda.
The “border czar” title, given to Homan, comes after Trump and other Republicans used the same term to criticize Vice President Kamala Harris’ handling of migration issues during the campaign, accusing her of failing to address the root causes of migration from Central America.
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