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DOJ Policy Change On Private Prisons May Impact Companies In Arizona
When Deputy Attorney General Sally Yates announced the Bureau of Prisons would phase out the use of private detention facilities in August 2016, it reflected a change in the Obama administration. The stock price of the Corrections Corporation of America, one of the major players nationally and in Arizona in private detention, took a nosedive.
On Thursday, Attorney General Jeff Sessions changed course, saying the previous directive from Yates “impaired the bureau’s ability to meet the future needs of the federal corrections system.”
The Bureau of Prisons contracts with 12 private facilities that house more than 21,000 inmates.
After the announcement, CCA, now known as Core Civic, saw its stock price jump in after-hours trading.