The Department of Homeland Security’s internal watchdog has confirmed it is launching a formal audit into a programme under former Secretary Kristi Noem that saw the agency purchase at least 11 warehouses across the United States at prices a real estate analytics firm described as above market rate, intending to convert them into immigration detention centres.
The DHS Office of Inspector General confirmed to the Wall Street Journal the audit was recently announced but declined to provide any additional details about its scope or scale, as is standard practice during ongoing oversight work.
The warehouse detention programme was conceived under Noem as a $38 billion initiative to house more than 92,000 immigration detainees in retrofitted industrial facilities, a proposal that generated lawsuits and bipartisan pushback from lawmakers including New Hampshire Governor Kelly Ayotte and Mississippi Senator Roger Wicker.
Immigration and Customs Enforcement purchased the 11 properties at prices ranging from $35 million to $145 million each, across sites in Arizona, Georgia, New Jersey, Pennsylvania, Texas, Michigan, and Utah, which real estate analytics company CoStar reported in March as exceeding the market rate for comparable facilities.
ICE also awarded federal contracts to renovate and operate the warehouses to companies with limited experience in federal immigration detention operations, according to a Wall Street Journal report that first disclosed the audit.
Incoming DHS Secretary Markwayne Mullin paused the warehouse programme upon taking office, though the facilities already purchased remain assets of the department and are now subject to the inspector general’s scrutiny.
George Zoley, executive chairman of the Geo Group, one of the federal government’s primary immigration detention contractors, had warned investors in February about the practical challenges of converting warehouses into functioning detention facilities, describing the physical renovation complexity and operational management demands as significant concerns.
Noem was ousted from her position as DHS Secretary before the programme could proceed to full implementation, with the warehouse purchases now representing a legacy spending decision under active federal review rather than an ongoing operational programme.
The latest audit adds to a broader pattern of DHS inspector general activity, which separately includes an ongoing investigation into contracting practices under Noem, including an examination of former senior adviser Corey Lewandowski’s role in procurement decisions and the activities of contractor Kara Voorhies.
