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Justice Department Reverses Obama Private Prison Order

  • Company shares rise in after-hours trading following decision
  • Obama’s move ‘impaired’ future prison needs, Sessions says
Updated on

Attorney General Jeff Sessions rescinded an Obama administration order directing the Federal Bureau of Prisons to phase out its use of private prisons, justifying investor bets on the impact of President Donald Trump’s plans on crime, immigration and deportation.

In a memo signed Feb. 21 but published Thursday, Sessions breathed new life into a decade-long experiment in hiring private companies to help manage the U.S. population of federal prisoners. Two key private prison operators, CoreCivic Inc. and Geo Group Inc., rose in after-hours trading.