POLICY WIRE FACT CHECK: ICE paid $495M for Minnesota prison offered to state for $75M
The Claim A viral claim has circulated across social media platforms and among political figures alleging that U.S. Immigration and Customs Enforcement (ICE) paid $495.6 million to purchase a vacant...
The Claim
A viral claim has circulated across social media platforms and among political figures alleging that U.S. Immigration and Customs Enforcement (ICE) paid $495.6 million to purchase a vacant private prison in Appleton, Minnesota. The narrative highlights a massive discrepancy: that roughly a year prior, the Minnesota Department of Corrections (DOC) had been offered the same facility by the operator for only $75 million.
The claim gained gained significant traction on Instagram, Facebook, and X (formerly Twitter) following an investigative report. It was shared by Democratic lawmakers, including U.S. Rep. Mike Levin and Minnesota Attorney General Keith Ellison, who framed the price difference as evidence of fiscal waste, corruption, or gross mismanagement by the federal government.
The Details & Investigation
Our investigation into public records and internal emails obtained by KARE 11 confirms that the core facts of the transaction are accurate. In August 2026, the Department of Homeland Security (DHS) indeed paid $495.6 million to CoreCivic for the Prairie Correctional Facility. This followed a period in August 2025 where CoreCivic offered the site to the state of Minnesota for $75 million. The Minnesota DOC declined that offer, citing a lack of funds, the facility’s remote location, and staffing challenges.
The massive gap between the $75 million offer and the $495.6 million final sale price is explained by DHS and CoreCivic as follows: the $75 million figure was a ‘preliminary, non-binding indication’ used during early discussions that never progressed to a formal appraisal. In contrast, the federal price was determined through a standard appraisal process using a ‘replacement-cost method.’ This calculation accounted for the current cost of equivalent secure space, adjusted for depreciation, and the significant security and fire upgrades required to meet ICE’s specific operational standards.
Furthermore, the Minnesota DOC’s own internal estimate to replace the Stillwater Correctional Facility—a site of similar scale—was roughly $1.3 billion. This suggests that the $75 million asking price was not reflective of the actual market or replacement value of a modern detention center. While the price discrepancy is factual, the implication of illegal activity or bribery remains unsupported by the available evidence, as the transaction followed established federal protocols and independent state-certified appraisals.
In evaluating the nature of this claim, we find that while the figures and the timeline are verified, the context is often used to imply deliberate corruption. The claim itself—that ICE paidกว่า495M for a facility previously offered for $75M—is a documented event. However, the reason for the variance lies in the difference between a non-binding state-level inquiry and a formal federal-level operational appraisal.
The Verdict
The claim that ICE paid $495 million for a Minnesota prison previously offered to the state for $75 million is TRUE. Public records, SEC filings, and internal emails from both the Minnesota Department of Corrections and CoreCivic verify the transaction amounts and the sequence of events.
The significant difference in price is attributed to the distinction between a preliminary, non-binding state-level offer and a formal federal appraisal based on replacement-cost and necessary federal-grade security upgrades. While the high cost is a matter of political debate, the factual basis of the report is fully supported by primary documentation.
Counter-misinformation & disinformation investigation conducted by PolicyWire Editorial Desk (PW).
