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More than half of states used private prisons in 2022, but they housed less than 10% of all inmates nationwide.
In January 2021, former President Joe Biden signed an executive order ending the use of privately-operated prisons, citing importance of prisoner rehabilitation and redemption and the need to alleviate federal reliance on profit-based correctional systems and noting that privately-operated prisons underperform in terms of both inmate and staff safety and resources for inmates.
The Federal Bureau of Prisons ended the use of privately-owned prisons on November 30, 2022. As of 2025, there are zero federal inmates in private institutions.
But because the order only applied to federal prisons, states can continue to contract with for-profit prisons.
On January 20, 2025, President Trump revoked the Executive Order 14006 of January 26, 2021 (Reforming Our Incarceration System To Eliminate the Use of Privately Operated Criminal Detention Facilities).
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