ICE Considers Selling Mega-Warehouses and Deportation Planes

WASHINGTON — Immigration and Customs Enforcement is exploring the sale of mega-warehouses purchased for mass detention and planes acquired for deportations under former Homeland Security Secretary Kristi Noem, according to two Department of Homeland Security officials. The potential sell-off marks a significant reversal of the Trump administration’s mass detention infrastructure buildout and signals a possible shift in immigration enforcement strategy under new DHS leadership.

According to NBC News, DHS and ICE officials have identified several of the eleven previously purchased warehouses for potential sale, though no final decisions have been made and the facilities have not yet been put on the market.

Background: The $38 Billion Detention Initiative

The warehouses were purchased under Noem as part of the ICE Detention Reengineering Initiative, a program that set aside $38.3 billion to convert vacant commercial warehouses into large-scale holding facilities across the United States. ICE acquired 11 warehouses in the space of a few months, with some intended to hold as many as 8,000 immigrants each, as part of a plan to build capacity to detain 100,000 people simultaneously.

The properties were not purpose-built for detention, and many lacked proper zoning approvals, working plumbing, and emergency infrastructure required to house thousands of people, according to reporting from IBTimes UK.

Overpayment Allegations and Legal Challenges

Commercial real estate analytics firm CoStar found that ICE paid between 11% and 13% above market value for the first 10 properties, with estimated overpayment reaching approximately $107 million in taxpayer money. Notable examples include a warehouse in Salt Lake City where ICE paid $145.4 million for a property with a 2025 tax-assessed value of $97 million, and a facility in Surprise, Arizona, where ICE paid over $70 million for property previously valued at under $12 million.

The town of Social Circle, Georgia, sued DHS in mid-May, alleging ICE paid more than five times the property’s previously assessed value — nearly $130 million for a warehouse valued at about $30 million. City Manager Eric Taylor told NBC News the facility would “triple the population overnight and have all kinds of strain on our water and sewer infrastructure.” Upon hearing news of the potential sale, Taylor said: “That’s great news. I’ll believe it when I see it.”

The Shift in Leadership

The discussions about potentially offloading assets underscore the cultural shift inside DHS since Secretary Markwayne Mullin began leading the agency. Mullin, a former U.S. Senator from Oklahoma and former mixed martial arts fighter, was nominated by President Donald Trump after Trump fired Noem in March 2026. As BBC News reported, Mullin immediately suspended the warehouse initiative upon being sworn in on March 24.

A DHS spokesperson said: “Under new leadership, DHS is assessing all our resources, including aircraft, to maximize efficiency and continue to deliver on President Trump’s mission of securing the homeland for all Americans.” The spokesperson added that Mullin is “100% focused on ensuring the needs of our department are met while being the best possible steward of taxpayer dollars.”

The Minneapolis Factor

The policy shift follows a pivotal moment in January 2026, when ICE agents fatally shot two U.S. citizens in Minneapolis: Renee Good, a mother of three, and Alex Pretti, an intensive care nurse. The shootings sparked widespread protests and led Trump to order the withdrawal of hundreds of immigration officials from Minnesota. Trump publicly acknowledged the need for a “softer touch” on immigration enforcement, marking a significant rhetorical shift from his campaign promises of mass deportations.

Oversight and Investigations

The DHS Office of Inspector General has launched a formal audit examining whether DHS met the need for new detention space in a “cost-effective manner.” The audit extends to contracting decisions tied to the program, with nearly 50 firms receiving a combined $1.7 billion in federal contracts since January 2025. Four of those firms had never previously held any federal contract before being brought into the program, yet their combined deals were worth up to $500 million.

Jessica Tillipman, associate dean for government procurement law studies at George Washington University, described the contracting practices as “a blazing red flag of procurement integrity concern.”

What’s Next

If ICE proceeds with selling the warehouses and planes, taxpayers could face significant losses if assets purchased at premium prices are sold at market rates. The DHS OIG audit could result in findings of waste, fraud, or abuse, and the Social Circle lawsuit may set a precedent for other communities challenging ICE facilities.

No final decisions have been made on the potential sales, and the future of the 100,000-detainee capacity goal remains uncertain. The DHS spokesperson said Mullin is committed to working with community leaders, adding: “We want to be good partners.”