# Legal Challenges Stall ICE Maryland-Arizona Warehouse Conversions

GAO reports that legal challenges have largely put ICE’s planned warehouse conversions in Hagerstown, Maryland, and Surprise, Arizona, on hold. The two associated delivery orders show $426.4 million obligated and $28.3 million in reported outlays as of September 24, 2026; the source provides no order-level breakdown or contract numbers. For procurement professionals and contractors, the gap between total obligations and reported outlays is relevant to assessing project execution and funding exposure, but the reported pause does not establish that the orders have been canceled.

- ICE and contractors connected to the two projects should account for potential schedule and performance impacts while the conversions remain largely on hold.
- The reported figures apply to both orders together, so they do not establish how obligations or outlays are distributed between Hagerstown and Surprise.
- Companies evaluating similar facility-conversion work can treat the legal challenges as a project-risk signal, while avoiding assumptions about cancellation or future procurement actions not stated in the report.

**Jurisdictions:** federal
**Industries:** Construction & Infrastructure
**Topics:** Physical Infrastructure
**Published:** October 03, 2026

### Government Entities
- U.S. Immigration and Customs Enforcement (ICE)
- U.S. Government Accountability Office (GAO)

### Key Quotes
> GAO says ICE’s plans to convert two warehouses in Hagerstown, Maryland, and Surprise, Arizona, are largely on hold because of legal challenges.
> — Original poster

### Sources
- [Two ICE Warehouse Conversions Are Largely on Hold. Their Contracts Show $28.3 Million in Outlays](https://www.reddit.com/r/fednews/comments/1wwexdc/two_ice_warehouse_conversions_are_largely_on_hold) - reddit-fednews