Geo Group (NYSE:GEO) and CoreCivic (NYSE:CXW) shares moved higher on Monday after Congress passed Donald Trump’s tax and spending bill, which increases funding for immigrant detention.
The legislation, known as the “Big, Beautiful Bill,” will triple federal spending on immigrant detection, allocating $45 billion over the next four years.
This will more than double current detention capacity from about 56,000 beds to potentially over 100,000 beds nationwide.
The substantial increase in funding directly benefits companies like Geo Group, which operates many detention centers under contracts with US Immigration and Customs Enforcement (ICE).
Shares of Geo Group added 2.2% at about $26 in early trade.
CoreCivic, the second largest private corrections company in the US, saw its shares 2.5% higher at about $22.
In addition to detention center funding, the bill provides approximately $29.9 billion for ICE enforcement and deportation operations, tripling ICE’s current annual budget for these activities.
It also sets aside $46.5 billion for the continued construction of a wall along the US-Mexico border and $6 billion for surveillance and border technology.