Border Jails Facing Bond Defaults as Immigration Boom Goes Bust
Bloomberg Business reports on a interesting downturn in one industry in a recovering U.S. economy.
Immigrant detention facilities built during the detention boom are weighing down the finances of some rural counties in the Sunbelt as border apprehensions slow and the federal government releases more immigrants.
“In Texas, nine of 21 counties that created agencies to issue about $1.3 billion in municipal bonds to build privately run detention facilities have defaulted on the debt. A dozen other facilities from Florida to Louisiana to Arizona also have defaulted.”
The slowdown in border detentions is putting a fiscal strain on counties that rushed to build jails. “Municipalities that banked on those facilities for revenue and jobs are desperate to keep them afloat as a glut of beds goes empty and walls gather dust.”
KJ