ICE Backtracks on Planned New York Detention Facility

Federal agency denies purchasing massive warehouse in Chester, NY after initial confirmation

Published on Feb. 28, 2026

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U.S. Immigration and Customs Enforcement (ICE) has retracted its previous statement confirming the purchase of a large warehouse in Chester, New York, that was intended to be used as a detention facility. ICE now claims the initial confirmation was a "mistake" and that the agency has not actually purchased the property, which remains owned by a subsidiary associated with former Trump adviser Carl Icahn.

Why it matters

The planned ICE detention facility had sparked significant backlash and concern from local residents in the Hudson Valley region, who feared it would lead to increased immigration enforcement and detentions in their community. ICE's reversal on the purchase raises questions about the agency's transparency and decision-making process around expansion efforts.

The details

Last week, ICE officials had confirmed the agency had purchased a 29 Elizabeth Drive warehouse in the Chester Industrial Park, stating it would be used to process up to 1,500 "criminal illegal aliens." However, ICE has now walked back that statement, claiming the initial confirmation was issued "without proper approval" and that no purchase has actually occurred. The Orange County Clerk's Office also confirmed there is no record of a deed transfer, and the property remains owned by IEP Chester LLC, a subsidiary linked to former Trump adviser Carl Icahn.

  • On February 15, 2026, ICE initially confirmed the purchase of the Chester warehouse.
  • On February 20, 2026, ICE retracted its previous statement, claiming the confirmation was a "mistake."

The players

U.S. Immigration and Customs Enforcement (ICE)

The federal law enforcement agency responsible for immigration enforcement and detention.

Carl Icahn

Former special adviser on regulatory reform to President Trump, and the owner of the Chester warehouse through his company IEP Chester LLC.

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What’s next

It remains unclear if the Chester warehouse is still under consideration by ICE as a potential detention facility, or if the agency has abandoned those plans entirely.

The takeaway

This incident highlights the need for greater transparency and community engagement from federal agencies like ICE when it comes to expansion efforts that could significantly impact local residents. The reversal has sowed confusion and distrust in the Hudson Valley region.