Private prisons house roughly 8% of state prisoners and held federal Bureau of Prisons inmates until a 2021 executive order ended new federal contracts. Private detention plays a much larger role in immigration: ICE detains the majority of immigration detainees in privately operated facilities.
Defenders argue private operators provide capacity flexibility, lower costs, and innovation. Critics argue private prisons have profit incentives to maximize population, lobby against criminal-justice reform, and provide lower-quality conditions.
Empirical evidence on cost savings is mixed and contested. Multiple studies find safety and rehabilitation outcomes worse in private facilities; industry-funded studies disagree.