The Minnesota Department of Homeland Security (DHS) recently purchased the Prairie Correctional Facility, a formerly idle prison in Western Minnesota, for more than $495 million—significantly higher than a $75 million offer made to the Minnesota Department of Corrections (DOC) the previous year. The 1,600-bed medium-security facility, which has been closed since 2010, is slated to be reopened to expand immigrant detention capacity amid the Biden administration’s broader immigration enforcement efforts.
In 2025, CoreCivic, a private prison operator, approached the Minnesota DOC with an offer to sell the shuttered Prairie Correctional Facility for $75 million. However, state officials declined due to budget constraints and concerns about staffing and operating a prison in the facility’s remote location near the South Dakota border. Discussions between the DOC and CoreCivic reportedly made little progress, with company representatives at one point proposing an even lower sale price.
Months later, in August, CoreCivic announced the complete sale of the facility to the federal government for over $495 million. Days following the transaction, DHS awarded CoreCivic an $18.6 million no-bid contract to operate the prison for one year. The reasons behind the sharp increase in the sale price have not been clearly explained, prompting questions from Minnesota officials and the public. The DHS declined to comment on inquiries regarding the purchase price, and a White House communications official deferred questions to DHS.
CoreCivic defended the sale price, stating that it was based on an appraisal reflecting “fair market value,” which included factors such as replacement costs, depreciation, and land value, determined by independent evaluators hired by the federal government.
The purchase comes amid growing scrutiny of DHS's expenditures. In September, the Government Accountability Office criticized the agency’s rapid expansion of immigrant detention facilities and related spending as poorly planned and wasteful. Earlier in the year, the department also faced questions for acquiring 10 used airplanes in no-bid contracts for $46 million, primarily intended for deportation flights but reportedly underutilized.
Minnesota officials expressed shock and frustration over the high dollar amount the federal government paid for the property. “The price tag is so different than the conversations we were having last year,” said Safia Khan, deputy commissioner and chief of staff for the Minnesota DOC. Attorney General Keith Ellison, a Democrat running for re-election, condemned the transaction, linking it to broader economic challenges faced by Minnesotans and alleging misuse of taxpayer funds.
Built in 1992 by the city of Appleton, a town of around 1,400 residents, the Prairie Correctional Facility initially held prisoners under contract with the Puerto Rico Department of Corrections and Rehabilitation. CoreCivic acquired the prison in the mid-1990s, managing it under contracts with several state corrections departments, including Minnesota’s, until its closure due to declining demand for out-of-state bed space.
As it prepares to reopen, the facility will be Minnesota’s only dedicated immigration detention center. The transaction highlights ongoing tensions over federal immigration enforcement policies and expenditures, as well as challenges faced by states in managing carceral infrastructure. Treasury Secretary Scott Bessent, visiting Minnesota to discuss fraud prevention initiatives, said he was unaware of the procurement details and dismissed inquiries into the pricing disparity as “a waste of our time.”