The Department of Homeland Security, or DHS’s, inspector general has launched an audit of a controversial $38 billion program that converted commercial warehouses into immigration detention centers under former DHS Secretary Kristi Noem and adviser Corey Lewandowski.
The audit will review all warehouse purchases made by U.S. Immigration and Customs Enforcement, or ICE, expanding on an existing investigation into DHS contract handling and political appointees’ roles, according to The Wall Street Journal.
ICE purchased 11 warehouses in just a few months last winter, funded through the One Big Beautiful Bill. A CoStar analysis found ICE paid 11-13 percent above market value for properties designed to hold up to 8,000 detainees. Critics questioned whether purchasing existing jail facilities would have been faster and more cost-effective.
Nearly 50 contractors received $1.7 billion since January 2025, including firms with no prior federal contracts or immigration detention experience. When Recently appointed Secretary Markwayne Mullin replaced Noem in March, he immediately suspended the warehouse initiative.
This investigation is ongoing, according to reports.
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