Delco Council votes to deprivatize the county s prison whyy.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from whyy.org Daily Mail and Mail on Sunday newspapers.
Moshannon Valley Correctional Facility Update 12:14 am
The planned closing of the Moshannon Valley Correctional Facility is the result of one of the new executive orders signed by President Biden.
The prison, which is operated by a private company, houses federal inmates.
The order says that the United States Attorney General shall not renew federal department of justice contracts with privately operated detention facilities.
The Moshannon Valley Facility houses up to 18 hundred inmates, with close to 280 employees and is now slated to close on March 31st.
The company owning the prison says they’re marketing the facility to state and local agencies.
Shares of
GEO Group (NYSE:GEO), a real estate investment trust (REIT) that develops and operates private correctional facilities for government clients, sank Tuesday on news that President Joe Biden plans to scale back the federal government s use of private prisons.
GEO Group stock was down 10.3% as of 3:10 p.m. EST.
Image source: Getty Images.
So what
According to an article published by Reuters, the Biden administration s policy will be to have the Justice Department decline to renew contracts with operators of private prisons. While that s short of an absolute ban, it doesn t bode well for operations such as GEO Group.
Moshannon Valley Correctional Facility 7:08 pm
The possible closure of the Moshannon Valley Correctional Facility comes after the Federal Bureau of Prisons decided not to renew their contract with the GEO group.
GEO officials say the contract is set to expire on March 31st.
Clearfield County Commissioner John Sobel says nearly 270 employees could lose their jobs.
He says this will also impact local businesses in Clearfield.
Though the future of the prison is unclear, Sobel is sure state and Federal officials are considering all options.
“There are all sorts of potential facilities they can convert to. I think in the short run efforts will be made by officials to get the Federal Bureau of Prisons to reconsider.”