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takyon writes:

Private prisons are making a comeback:

The Trump administration is rolling back an Obama-era plan to phase out the federal government's use of private prisons. Attorney General Jeff Sessions sent a memo Thursday to the Bureau of Prisons rescinding the Obama administration's Aug. 16 order advising the bureau not to renew any contracts with private prisons, according to a copy of the letter. Then-Deputy Attorney General Sally Yates had instructed officials to either not renew private prison contracts or substantially reduce the scope of such contracts to ultimately end the department's use of privately operated prisons altogether.

Who stands to benefit?

Attorney General Jeff Sessions's four-sentence memo rescinding Justice Department guidance to reduce the use of private prisons sent stock soaring for the two companies that dominate the industry, Geo Group and CoreCivic (formerly Corrections Corporation of America). That's not necessarily because the memo will lead to a ramp-up in Geo- or CoreCivic-run federal prisons. As of December 2015, about 12 percent of all inmates in federal prisons were housed in private facilities, representing only 22,660 inmates. That certainly won't decline under Sessions, but he didn't promise to increase it substantially. "I direct the [Bureau of Prisons] to return to its previous approach," Sessions wrote. Anyway, DoJ renewed a pair of contracts with CoreCivic despite the now-scuttled order, so it's unclear if the status quo ever stopped.

Also at CNN Money.

Review of the Federal Bureau of Prisons' Monitoring of Contract Prisons (August 2016).

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