{"id":238409,"date":"2026-07-08T14:24:10","date_gmt":"2026-07-08T14:24:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-pa\/238409\/"},"modified":"2026-07-08T14:24:10","modified_gmt":"2026-07-08T14:24:10","slug":"future-uncertain-for-pennsylvania-warehouses-after-ice-pivot-away-from-detention-centers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-pa\/238409\/","title":{"rendered":"Future uncertain for Pennsylvania warehouses after ICE pivot away from detention centers"},"content":{"rendered":"

By Emily Previti, Pennsylvania Capital-Star<\/a>
July 7, 2026<\/p>\n

Since Immigration and Customs Enforcement appears to have abandoned plans for converting some of its new warehouses to detention facilities, many questions remain about the future of the properties.<\/p>\n

A big one, at least in Pennsylvania, is how to offset millions of dollars in local government revenue that\u2019s been lost now that the properties are tax-exempt.<\/p>\n

Some local officials have hoped for payments in lieu of taxes from the federal government \u2013 while others say they don\u2019t expect that to happen.<\/p>\n

The loss amounts to about $1.6 million annually, combined, for six taxing districts between the two sites in Tremont Township, Schuylkill County, and Upper Bern Township, Berks County, according to local officials.<\/p>\n

\u201cI don\u2019t want to sound pessimistic, but if they mothball it, I don\u2019t think we\u2019re going to get anything,\u201d said Pine Grove Area School Board Treasurer Dave Frew, noting the hope is that the government will sell.<\/p>\n

Federal officials stated during conference calls that they\u2019d be open to a three-year agreement to compensate taxing districts for revenue losses, Schuylkill County Board of Commissioners Chairman Larry Padora has said.<\/p>\n

But in Berks County, officials aren\u2019t expecting to get any money through a payment in lieu of taxes because \u201cfacilities of this type are excluded from PILT eligibility\u201d, said spokesman Jonathan Heintzman.<\/p>\n

The Department of the Interior distributed more than $644 million in payments in lieu of taxes last year for entitlement lands. Source: Congressional Research Service (CRS)<\/p>\n

Like most federal agencies, the Department of Homeland Security is not authorized to execute PILT agreements nor make payments to counties. That\u2019s up to Congress, according to the National Association of Counties (NACO), which has\u00a0lobbied for years to change PILT policies.<\/p>\n

Generally, the agreements are linked to what are known as entitlement lands \u2013 mainly, national parks and forests, in addition to wildlife refuges, U.S. Army Corps of Engineers dredge areas and other tax-exempt properties administered by agencies within the Department of Interior (which administers the PILT<\/a> program), according to federal statute and DOI\u2019s press office.<\/p>\n

The Department of Energy also can make payments for properties that aren\u2019t considered entitlement lands, according to CRS.<\/p>\n

Beyond that, a PILT agreement \u2013 or alternative that practically functions as one \u2013 is rare, according to Jessica Hartl, NACO\u2019s senior director of communications.<\/p>\n

Federal lawmakers have proposed expanding the definition of entitlement lands to include properties owned by certain agencies, including DHS, in the past. Source: CRS <\/p>\n

\u201cWhile not impossible, it is highly improbable. Individual payments of any kind are reserved for extraordinary circumstances only,\u201d Hartl said.<\/p>\n

Asked about alternative mechanisms, a spokesman for Republican Rep. Dan Meuser (PA-9) said the congressman is \u201cadvocating directly with DHS\u201d \u2013 as he has been for months \u2013 about plans for and concerns about the properties, in general, including for \u201cpayments to be made to Schuylkill and Berks counties to offset property tax revenue shortfalls.\u201d<\/p>\n

DHS and ICE\u2019s media relations team have not provided details about payments in lieu of taxes for the Pennsylvania warehouse properties or alternatives that would achieve a similar aim in response to multiple requests from the Capital-Star.<\/p>\n

\u201cI don\u2019t care if it\u2019s sitting there,\u201d Padora said of the 1.3-million square feet structure in Tremont. \u201cWe want our tax revenue. If they sell, it gets back on the tax rolls. If it\u2019s given to another government agency, we\u2019re going to push for payment in lieu of taxes.\u201d<\/p>\n

Padora spoke at his last commissioners meeting June 24 before going on vacation. He confirmed to the Capital-Star July 1 that he hadn\u2019t engaged directly with ICE or DHS in recent weeks about future plans for the Tremont property, a warehouse that\u2019s been sitting empty for about 18 months after former operator Big Lots closed up shop.<\/p>\n

Padora hasn\u2019t responded to the Pennsylvania Capital-Star\u2019s attempts to contact him this week. A phone message left for the county solicitor also hasn\u2019t been returned.<\/p>\n

Meuser previously provided a statement confirming the DHS is pivoting on its plans for the properties and pledging to \u201cprovide an update upon learning of the definitive future plans for the sites.\u201d<\/p>\n

\u201cThe Administration\u2019s plans evolved based on operational needs and, in large part, the extensive due diligence conducted by county and local officials, working alongside my office to ensure the best possible outcome for the community. The careful review of the proposed sites and engagement with DHS played an important role throughout this process,\u201d it said.<\/p>\n

At one point, the plan was to detain up to 7,500 people in Tremont (which would\u2019ve been one of the nation\u2019s biggest such immigration centers) and as many as 1,500 people in Upper Bern Township in Berks County. Employees would\u2019ve added thousands of additional people to the count.<\/p>\n

Meuser\u2019s reference to \u201cdue diligence\u201d refers to the fact that infrastructure in the rural Coal Region area cannot accommodate ICE operations at the scale envisioned<\/a> \u2013 something that local and county officials immediately flagged and that added to the community backlash.<\/p>\n

Meuser\u2019s statement came more than a week after The New York Times reported the change<\/a>, citing unspecified documents.<\/p>\n

Pennsylvania U.S. Senator John Fetterman, a Democrat, also said he confirmed the news in a press release<\/a> in mid-June. His office hasn\u2019t responded to the Capital-Star\u2019s requests for more details.<\/p>\n

When the properties changed hands last winter, county governments collected recording fees of $37,000 in Schuylkill and $26,220 in Berks (a fraction of the taxes typically generated), according to Padora and Berks County Recorder of Deeds Fred Sheeler.<\/p>\n

Upper Bern and Hamburg Area School District each took in $428,000 of real estate transfer taxes, according to Sheeler.<\/p>\n

Tremont and Pine Grover Area School District each drew about $660,000, according to Frew, enough to buffer the property tax revenue loss in the short-term.<\/p>\n

\u201cThat windfall will help us offset what it would\u2019ve generated [in property taxes]. But that\u2019s a non-recurring revenue,\u201d Frew said, noting school officials aren\u2019t panicking yet because the district has savings, reserves and minimal debt.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

Don\u2019t count on social media algorithms to help you find a trusted news source. Sign up for our free morning newsletter.<\/p>\n

\u00a0<\/p>\n

\u201cIn a perfect world, the federal government would sell it and trigger another $664,000 in real estate transfer taxes. And the new owner establishes fair market value at $128 million, generating $1.8 million [in annual tax revenue] for us,\u201d Frew said.<\/p>\n

In the meantime, ICE\u2019s case before the state Environmental Hearing Board remains status quo. The agency is appealing<\/a> state orders barring local officials from facilitating water and sewage use at both properties.<\/p>\n

The board allowed two environmental advocacy organizations <\/a>\u00a0\u2013 the Delaware Riverkeeper Network and Green Amendments for the Generations \u2013\u00a0 to intervene in an order filed June 22<\/a>.<\/p>\n

Maya K. van Rossum, who heads both groups, noted ICE contested their petitions to join the case, most recently with a response filed June 11<\/a>.<\/p>\n

\u201cWe\u2019ve seen press reports, but their [formal] actions and activities suggest it\u2019s still an outstanding question when it comes to the Pa. warehouses,\u201d she told the Capital-Star. \u201cUntil it\u2019s official and formal, we\u2019re proceeding as though it\u2019s happening. It looks like they\u2019re keeping all options open.\u201d<\/p>\n

The Capital-Star reached out for clarity on payments in lieu of taxes and alternative mechanisms to offset revenue lost from tax-exempt federal properties to a litany of experts, think tanks and government agencies, including:<\/p>\n

The Library of Congress, which vets media requests for the Congressional Research Service, declined to facilitate interviews with or clarification from anyone at CRS who\u2019s published related research. CRS later directed PCS to an explainer about PILT.
\nThe Department of the Interior, which administers the PILT program, deferred to DHS, as did the General Services Administration, which includes real estate management in its purview.
\nA DHS spokesperson said the agency \u201cis moving swiftly to utilize EXISTING detention space with our state and county partners.\u201d
\nRepresentatives from the Tax Foundation,\u00a0 Volcker Alliance, Lincoln Institute of Land Policy, Taxpayers for Common Sense, and Institute on Taxation and Economic Policy said they and colleagues couldn\u2019t provide insight on this issue.<\/p>\n

\u00a0<\/p>\n

Support the Pennsylvania Capital-Star today.<\/p>\n

Independent reporting on Pennsylvania state government that impacts communities statewide \u2014 free to read and republish.<\/p>\n

Thanks for reading Emily\u2019s story.<\/p>\n

Amid fluctuating gas prices and economic uncertainty, we understand how important it is to make\u00a0every dollar count.<\/p>\n

Your contributions help make it possible for us to continue to provide statewide reporting free of\u00a0advertising,\u00a0subscription fees, or\u00a0paywalls\u00a0to your fellow Pennsylvanians who might not be in a financial position to give.<\/p>\n

If you are able, please consider making a\u00a0one-time gift\u00a0of $10, $25 or $50. You can also \u201cset it and forget it,\u201d by becoming a sustaining member with a\u00a0monthly contribution\u00a0anywhere between $10 and $25.<\/p>\n

Join your friends and neighbors as donors today.<\/p>\n

\u00a0<\/p>\n

]]><\/p>\n

Pennsylvania Capital-Star<\/a> is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Tim Lambert for questions: info@penncapital-star.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"By Emily Previti, Pennsylvania Capital-StarJuly 7, 2026 Since Immigration and Customs Enforcement appears to have abandoned plans for…\n","protected":false},"author":2,"featured_media":238410,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[28,30,29],"class_list":["post-238409","post","type-post","status-publish","format-standard","has-post-thumbnail","category-pennsylvania","tag-pennsylvania","tag-pennsylvania-headlines","tag-pennsylvania-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/238409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/comments?post=238409"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/238409\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media\/238410"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media?parent=238409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/categories?post=238409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/tags?post=238409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}