Federal Court Blocks Construction of Planned ICE Facility Near Gilroy on Environmental Grounds
On September 11, 2026, U.S. District Judge Eumi K. Lee of the Northern District of California issued a preliminary injunction halting the construction of a planned 25-acre Immigration and Customs Enforcement (ICE) holding facility near Gilroy, California.
The ruling represents a significant victory for California Attorney General Rob Bonta and Santa Clara County, who filed a joint lawsuit in June 2026 to stop the project, arguing that the federal government was attempting to bypass critical environmental and local zoning laws in its rush to expand detention capacity.
Failure to Analyze Environmental Risks
The proposed Gilroy Holding Facility was designed to process and detain at least 120 people per day as part of the Trump administration's nationwide mass deportation campaign. However, the site—located just east of the Gilroy Premium Outlets—housed agricultural research companies from 1993 to 2023 and has a documented history of hazardous waste violations.
In her ruling, Judge Lee found that ICE failed to conduct a "meaningful environmental analysis" before beginning construction on the site, which increases the risk of releasing hazardous materials into the surrounding community and wildlife habitats:
"ICE had offered no proof that a 'meaningful environmental analysis' was conducted before starting construction... [construction and demolition work on-site] increases the risk of releasing hazardous materials into the environment."
The court also noted that the site lacks the basic infrastructure, such as adequate septic and sewer systems, required to support a detention facility of this scale.
Local and State Backlash Against "Secret" Construction
California Attorney General Rob Bonta celebrated the preliminary injunction, accusing the Trump administration of attempting to build the facility in secret to avoid public scrutiny and environmental reviews:
"No one is above the law - not even the federal government. The Trump Administration tried to rush construction of this facility in secret, ignoring environmental safeguards and shutting out the communities that would bear the consequences."
Santa Clara County Counsel Tony LoPresti echoed these concerns, emphasizing the fundamental infrastructure flaws of the project:
"We’re hopeful the court’s ruling sends a clear message that this is the wrong process and the wrong place for this facility. The federal government’s legal violations concealed fundamental flaws with this project — you can’t plop a facility like this onto sensitive land that lacks basic infrastructure to support the detention of individuals."
Local opposition has also intensified, with the Gilroy and Morgan Hill Unified School Districts formally opposing the facility. The court order halts all development on the site until the broader lawsuit is resolved, leaving the project in legal limbo. The parties are scheduled to return to court on September 30, 2026, to negotiate the exact scope of the construction pause.