U.S. Immigration and Customs Enforcement (ICE) is stepping back from plans to convert large warehouses into detention centers for immigrants, abandoning a major component of a $38 billion initiative proposed by former Homeland Security Secretary Kristi Noem to rapidly expand detention capacity this year. The move comes amid legal challenges, community opposition, and logistical concerns.

The federal government notified a judge on Monday that it will sell a warehouse in Romulus, Michigan, previously intended to hold detainees. Similar plans are reportedly unraveling in Social Circle, Georgia, and the suburb of Socorro near El Paso, Texas. These three sites are part of 11 locations where the federal government spent over $1 billion acquiring warehouse properties for detention purposes. According to unconfirmed reports, ICE intends to dispose of seven of these 11 warehouses by transferring them to other federal agencies or selling them outright.

The Department of Homeland Security (DHS) declined to confirm these reports but stated it is “moving swiftly to utilize existing detention space with our state and county partners.” The agency has faced significant pushback for the clandestine nature of the warehouse purchases, which angered local communities that learned of plans only after acquisition or lease agreements were in place.

Following Noem’s departure, her successor, Markwayne Mullin, put a pause on further warehouse acquisitions. Mullin acknowledged challenges during his confirmation hearing, citing infrastructure limitations such as inadequate sewer and water capacity in many municipalities targeted for these facilities. Local officials and residents expressed concerns about the strain these centers would place on public utilities and other resources. The water issue was particularly acute at the Salt Lake City warehouse—the most expensive purchase at $145.4 million—where ICE officials reportedly informed local leaders that water and sewage might need to be trucked in as a temporary measure.

Legal resistance mounted with seven federal lawsuits filed, including actions by Michigan and a Detroit suburb. Michigan Attorney General Dana Nessel denounced the plans to convert the Romulus warehouse as “ill-conceived,” “cruel,” and “unnecessary.” Opposition also came from elected officials. In Georgia, Social Circle announced last week that the Department of Homeland Security was no longer pursuing the facility after communication from U.S. Rep. Mike Collins. In Texas, ICE representatives told local officials during a recent visit that plans for three Socorro warehouses have changed; instead of housing up to 8,500 detainees, the site will become an ICE campus with offices, training space, and a smaller number of detainees, according to U.S. Rep. Veronica Escobar.

Compounding the federal government’s difficulties, an internal audit raised questions about the costs of some warehouse acquisitions, revealing significant markups above local property valuations. These financial concerns, alongside operational challenges identified by former ICE official Claire Trickler-McNulty, have added to the criticism of large-scale detention sites of this nature.

Despite ICE’s shift away from the warehouse model, many communities remain cautious and seek transparency. In Pennsylvania, state and local authorities report a lack of updated information regarding two warehouses purchased earlier this year, with permits stalled over concerns about local drinking water and sewage capacity. In Oakwood, Georgia, city officials continue efforts to clarify the fate of a local warehouse amid persistent rumors of a sale.

In Maryland, a judge has extended a pause on converting a large warehouse into an immigrant processing facility as ICE collects public feedback on its environmental impact. Opponents, including advocacy groups such as Hagerstown Rapid Response, remain active in contesting the plans, emphasizing the unsuitability of warehouse facilities for housing detainees.

The retreat from warehouse detention centers marks a significant recalibration in ICE’s strategy for expanding detention capacity under the current administration, reflecting both grassroots and institutional resistance to the rapid, large-scale expansion initially envisioned.