Federal investigators are now looking into how Kristi Noem spent $145m on a warehouse that was worth $97m, and it’s not her only shady purchase

The Department of Homeland Security’s (DHS) internal watchdog, the Office of Inspector General, has announced a probe into a $38 billion program approved under former Secretary Kristi Noem to turn warehouses into immigration detention centers. The program was meant to expand detention space across the country as federal agents arrested and detained thousands of immigrants under the direction of former President Donald Trump, who had promised to carry out mass deportations of undocumented immigrants and migrants with criminal records.

According to the Washington Post, many of the warehouses purchased under this program were quickly met with problems. Several were not properly zoned for use as detention facilities and lacked working plumbing. Residents and local officials also raised concerns that the facilities could strain local resources, harm the environment, or simply be an eyesore in their communities.

One warehouse in Salt Lake City, Utah, was bought for $145.4 million, even though its tax-assessed value was only $97 million. The purchase was made just days after President Trump announced that Noem was leaving her role as secretary. It is not clear why the warehouse was bought for so much more than its assessed value, but this is expected to be a major focus of the Inspector General’s investigation into Noem’s contracting methods.

Noem’s warehouse spending spree has left a trail of legal battles and unanswered questions

The Utah purchase is not the only one drawing scrutiny. In Washington County, Maryland, a judge blocked a warehouse bought for $102 million from being converted into a detention center until an environmental review is completed. In Arizona, the state’s attorney general filed a lawsuit in April to stop officials from turning a warehouse in Surprise, purchased for $70 million, into a detention facility.

These legal challenges have effectively stalled parts of the program in multiple states, leaving many of the purchased properties sitting unused. The Inspector General is also already looking into another issue from Noem’s time as secretary. She had put in place a policy requiring her direct sign-off on any contract worth more than $100,000. 

This created a significant backlog of necessary contracts, including those for FEMA, as they sat waiting for her signature, delaying important government work in the process. Noem’s time at DHS has been marked by one controversy after another, making her tenure one of the most scrutinized in the department’s recent history.

On top of that, it has been reported that Noem handed over authority to her unpaid, unofficial chief of staff, Corey Lewandowski. This has raised further questions about how contracting decisions were being made inside the department during her tenure. Investigators have been looking into what Lewandowski was really doing at DHS, with insiders suggesting his influence went far beyond what was publicly known.

The warehouse purchases drew widespread criticism from lawmakers and local officials across the country. While the program was designed to support Trump’s mass deportation agenda by expanding detention capacity, many argued that it was poorly planned and would place unnecessary burdens on local communities. Critics also pointed out that the federal government appeared to be paying well above market value for properties that were not even ready for use.

Several of the purchased properties came with serious practical problems that made them unsuitable for use as detention centers without significant additional work. The fact that basic issues like zoning and plumbing were not addressed before purchases were finalized raises serious questions about whether proper due diligence was carried out at all.

With multiple legal battles ongoing and a formal federal investigation now underway, the full picture of how these deals were approved and at what cost to taxpayers is still coming to light. The Inspector General’s findings are expected to shed more light on the decision-making process behind these purchases and whether proper procedures were followed under Noem’s leadership at DHS.