Fact Check: Did ICE buy a Minnesota prison for $495M after offering it for $75M?
WASHINGTON, DC: A reported purchase of a vacant prison in Minnesota by US Immigration and Customs Enforcement (ICE) has sparked debate over government spending.
Social media users and reports have drawn attention to the difference between the amount ICE reportedly paid for the facility and the price at which it was previously offered to the state of Minnesota.
The large price gap has raised questions about the deal and the use of taxpayers' money.
Claim: ICE paid nearly $495M for a private prison
Why on earth did the Trump Administration pay $495.6 MILLION for a vacant prison in Minnesota when the company selling it had offered to sell the SAME prison to the state for just $75 million the year before? Are you telling me that American taxpayers may have overpaid by $420 MILLION? Because, to me, it sure looks like the Trump Administration paid more than SIX TIMES the previous asking price. And by the way, the company that sold the prison, CoreCivic, donated $500,000 to Trump’s inauguration. I’ll let you draw your own conclusions here, but anyone with eyes can see that this is an absurd waste of taxpayer dollars and that something shady is going on here.
— Rep. Mike Levin (@RepMikeLevin) November 2, 2026
In late October, social media posts claimed that US Immigration and Customs Enforcement (ICE) had paid nearly $495 million for a private prison that its owner had previously offered to sell to the state of Minnesota for $75 million.
The claim spread across Instagram and Facebook, attracting attention amid the White House's criticism of Minnesota over its governance and alleged fraud. Democratic lawmakers, including US Representative Mike Levin of California, also shared the story on X.
Why on earth did the Trump Administration pay $495.6 MILLION for a vacant prison in Minnesota when the company selling it had offered to sell the SAME prison to the state for just $75 million the year before? Are you telling me that American taxpayers may have overpaid by $420 MILLION? Because, to me, it sure looks like the Trump Administration paid more than SIX TIMES the previous asking price. And by the way, the company that sold the prison, CoreCivic, donated $500,000 to Trump’s inauguration. I’ll let you draw your own conclusions here, but anyone with eyes can see that this is an absurd waste of taxpayer dollars and that something shady is going on here.
— Rep. Mike Levin (@RepMikeLevin) November 2, 2026
The claim first appeared in a report published by KARE 11, an NBC-affiliated television station based in Minneapolis, on October 29.
According to the report, the Department of Homeland Security (DHS) paid private prison operator CoreCivic $495.6 million in August for a vacant prison in Appleton, a rural town in southwestern Minnesota.
KARE 11's investigation also found that about a year before the federal government purchased the facility, the Minnesota Department of Corrections had rejected a $75 million offer from CoreCivic to buy the same prison, known as the Prairie Correctional Facility.
The difference between the two prices sparked questions about the deal and the government's spending.
Fact Check: The claim is true
The claim is true. However, it remains unclear why ICE paid so much more for the prison than the price CoreCivic previously offered to Minnesota.
The purchase came shortly before the Government Accountability Office (GAO), a nonpartisan government watchdog, released a report on September 24. The report said ICE had wasted taxpayer money on unsuccessful detention projects and lacked important information about the long-term costs of its investments.
During an October 30 press conference, Treasury Secretary Scott Bessent said he knew nothing about the reported overpayment for the Minnesota prison. He also dismissed a question about the purchase, calling it a "waste of our time."
On November 2, the Department of Homeland Security (DHS) sent reports the same statement it had provided to KARE 11. The department said it followed the standard federal appraisal process when purchasing the Prairie Correctional Facility.
DHS explained that it bought the prison to expand the country's immigration detention capacity and support the government's deportation plans.
The department also said the 1,600-bed facility would allow ICE to detain and deport people who do not have legal permission to remain in the United States, without waiting years to build a new facility.
DHS also addressed the difference between the two prices. It said the earlier $75 million figure was only a preliminary, non-binding offer made during discussions with the Minnesota Department of Corrections.
According to the department, both sides never reached a formal agreement or completed an official property appraisal.
The department added that the earlier offer did not account for replacement costs, rising construction expenses, or federal operating requirements. It also pointed out that Minnesota estimated it would cost about $1.3 billion to replace the Stillwater prison.
