Detaining migrant children grew to a $3.5 billion business last year. Now the Trump administration is shifting some of that work towards the private sector, away from traditionally religious, nonprofit providers. By mendozamartha and garanceburke.
Migrant teens line up for a class at a "tender-age" facility for babies, children and teens, in Texas' Rio Grande Valley, Thursday, Aug. 29, 2019, in San Benito, Texas. The facility offers services that include education, nutrition, hygiene, recreation, entertainment, medical, mental health and counseling, according to a U.S. Health and Human Services official.
Trump administration officials say CHS is keeping the Florida shelter on standby in case they need to quickly provide beds for more migrant teens, and that they’re focused on the quality of care contractors can provide, not about who profits from the work. Kelly did not respond to requests for comment. But in a statement, Caliburn’s President Jim Van Dusen said: “With four decades of military and humanitarian leadership, in-depth understanding of international affairs and knowledge of current economic drivers around the world, General Kelly is a strong strategic addition to our team.”
All teens were transferred out of Homestead in August after critics _ ranging from members of Congress to onsite protesters _ said holding that many migrant children in a single facility was abusive. Meanwhile CHS was getting more business housing migrant children. Today it’s operating six facilities including three “tender age” shelters in the Rio Grande Valley that can house the youngest, infants and toddlers. And CHS has plans underway to run a 500-bed shelter in El Paso, the company said.
During that time, CHS swiftly moved into the business of caring for migrant children, an AP analysis of federal data found. In 2015, the company was paid $1.3 million in contracts to shelter migrant children, and so far this year the company has received almost $300 million in contracts to care for migrant kids, according to publicly available data. The company also operates some shelters under government grants.
At the time, a total of 13,066 migrant children were being held in federally funded shelters. Those numbers have dropped sharply over the summer. By early October, HHS said there were 5,100 children in their care. “These aren’t commodities. They’re kids, and they don’t need to have big box stores serving them,” he said. “This isn’t Amazon.com. You can’t just order up migrant care.”
In their downtime some of the girls watch telenovelas, paint their nails, braid their hair. At lunchtime, there’s a clatter as some teens joke to one another across the cafeteria. Other girls stay silent. Washburn University law professor David Rubenstein, whose research focuses on the privatization of immigration detention, sees red flags in a private business model for migrant child care. While privatization can reduce bureaucracy and make care more efficient, there are fewer ways to hold for-profit providers accountable, he said.
While on the committee, Kelly joined the board of DC Capital Partners, a financial firm that would go on to found Caliburn in February 2016. He stepped down from that board _ comprised of former senior diplomatic, intelligence, and military officials _ in January, 2017, divesting because President Donald Trump picked him to head the Department of Homeland Security.
No-bid contracts can lead to higher costs. CHS, a contractor, typically hires locally, staffing up as quickly as it can, hiring hundreds of people through online ads and at community job fairs. In contrast, nonprofits typically are paid through grants. They have screened staffers on call, who can be flown in if a shelter needs to care for a sudden increase of children for a short period.
Caliburn withdrew its proposal to go public earlier this year citing “variability in the equity markets.” Nonprofit providers, however, have faced criticism of their own. Earlier this year, a review of 38 legal claims obtained by the AP — some of which have never been made public — showed taxpayers could be on the hook for more than $200 million in damages from parents who said their children were harmed while under care from nonprofit foster providers and other shelters.
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