What did the DHS memo change for refugees?

It authorizes ICE to arrest and detain legal refugees who have lived in the U.S. for one year without obtaining a green card. The trigger is the one-year mark. DHS frames it as enforcement discretion, with details to come in guidance. Scale depends on priorities, resources, and any court limits.

How could a Minnesota injunction affect enforcement?

A temporary restraining order or preliminary injunction could pause or narrow the memo’s enforcement, at least in Minnesota. Other courts may consider the ruling persuasive. If relief is broad, agencies may delay new arrests and transfers while litigation proceeds. If denied, DHS could move ahead, subject to future appeals.

Which companies could be most exposed to policy shifts?

Operators of detention facilities, transport providers, food and security vendors, medical service contractors, and compliance software firms have direct exposure to volumes and staffing. Legal service nonprofits and community providers face workload changes. Contract terms, capacity, labor availability, and audit requirements will drive earnings risk more than headline sentiment.

What should investors monitor next?

Watch the Minnesota injunction timeline, any parallel lawsuits, and DHS guidance to ICE on priorities or exemptions. Listen for capacity targets in congressional hearings and agency updates. Review contractor disclosures on utilization, staffing, and receivables. Shifts in guidance or court orders can quickly change volume, pricing, and compliance costs.

Law and Government

February 20: DHS Refugee Detention Order Faces Court Test, Policy Risk

ByHuzaifa Zahoor February 21, 2026February 21, 2026

On February 20, DHS refugee detention moved from policy memo to legal test. The Department of Homeland Security issued a memo expanding detention authority over legal refugees who have lived in the U.S. for one year without a green card. A Minnesota case now seeks an injunction. For investors, the shift raises policy and litigation risk. It could alter demand for detention capacity, transport, and compliance services. State budgets may also face near-term strain. We outline what changed, the court path, and practical watch items.