Target Hospitality Shares Crater 35% On News Biden Admin Will Shutter ICE Facility In Dilley, Texas

Shares of Target Hospitality were rocked on Tuesday morning, falling more than 35% during the cash session, after news broke that the government was planning on terminating a services agreement with the company’s migrant programming partner.

The company offering rental accommodations with catering and hospitality services revealed that the U.S. government plans to end its contract with Target’s partner for the current South Texas Family Residential Center situated in Dilley, Texas.

This termination is expected to take effect within 60 days, around August 9, MarketWatch reported.

Their report followed earlier reporting from The Wall Street Journal, stating that the Biden administration is shutting down an Immigration and Customs Enforcement detention facility in Dilley, which has historically housed migrant families apprehended for illegal border crossings.

The report said Biden was closing the center because “it is far more expensive to operate than other ICE facilities”. In other words, we’ve got plenty of cash to send overseas and squander on foreign aid – but not enough to keep ICE facilities open.

Officials state that without new funding from Congress, Biden’s ability to deport more migrants under the revised policy hinges on increasing detention space for those awaiting removal. Closing the Dilley facility would free up resources for approximately 1,600 extra detention beds elsewhere. 

Since 2021, Dilley has only housed single adults after Biden ceased detaining families there. Shutting it down entirely would hinder any attempt by a potential second-term President Trump to repurpose it for family detention, the report said.

The Journal notes that immigration advocates view Dilley as emblematic of harsh immigration policies, with children enduring prolonged stays. Lawyers and students nationwide represented families there, contesting deportations and seeking release.

Trump has pledged a massive deportation effort if re-elected, yet such action, especially against families, depends on available detention space. 

Dilley’s layout, initially for oil workers, suited family detention with its cottages and separate areas, unlike typical centers designed for adults.

Opened under Obama to deter illegal crossings, Biden discontinued family detention in 2021, favoring release with monitoring. 

Biden’s recent executive action subjects migrant families to swift deportation if ineligible for asylum, detaining some briefly before deportation flights, limited by a 2015 court ruling to about 20 days.

Meanwhile Target said it will provide updates on the operational and financial impact of this termination before June 30.