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>> The Justice Department's plan to phase out use of for profit prisons, the latest criminal justice reform to come out of the Obama administration. While the news caught private prison companies completely off guard, it doesn't spell the end of for profit prisons in the US. Reuters Justice correspondent Julia Edwards explains.
>> The Justice Department memo on Thursday went to the Bureau of Prisons. They run the federal prison system that most people think about incarcerating inmates convicted of federal crimes. But that doesn't hit on inmates that may be detained by the US Marshall service, or anyone detained by the Department of Homeland Security, including immigrants who are held in detention facilities that are almost exclusively run by corporations like the Geo Group and Corrections Corporation of America.
>> These groups Friday maintaining Thursday's directive is not a fatal blow for the private prison industry.>> They pointed out the fact that most of the prisoners that they work with are actually on the state level. And they pointed out the fact that a lot of these contracts aren't up for renewal for five years.
And even at that point they may still be renewed.>> Shares of GEO Group and CCA plummeted on the announcement, ending more than 35% down at close Thursday, both stocks slightly rebounding Friday. One of the complaints in the memo issued by Deputy Attorney General Sally Yates, was that these private prisons were not running rehabilitative services in a way that they should.
But that doesn't apply to other federal departments.>> DHS has said that for their migrant detention centers, they don't have the task of rehabilitation. They don't have anything that looks like a halfway house. And they also don't need to give people the skill set that they might need to give a prisoner.
>> The DOJ decision cheered by advocates of prison reform, who point to for profit prisons, and their political lobbyists, as part of the problem within the criminal justice system. Democratic presidential candidate, Hillary Clinton said earlier in her campaign that she would no longer accept donations from private prison companies for her White House run.