New Leadership
The Federal Bureau of Prisons (BOP) has had a year of significant changes. On the first day of President Donald J. Trump’s in office, BOP Director Colette Peters was dismissed and it would take a few months before the BOP hired William Marshall III who had headed the West Virginia Department of Corrections. Like Peters, Marshall came from outside of the BOP but unlike Peters he has managed to move the needle on improvements inside the agency in a short time.
An Agency First
The Trump administration’s Department of Justice gave Director Marshall a Deputy Director, Josh Smith, who has an active role in leading the BOP. Smith, who spent 6 years in federal prison on drug charges years ago, received a Presidential Pardon from Trump during his first administration. Smith is the highest ranking executive in BOP history who also has spent time in federal prison. After his prison term, Smith dedicated his life to finding purpose in his life, became a successful businessman and then founded a non-profit organization, The Fourth Purpose, dedicated to transforming the lives of the formerly incarcerated to make them better returning citizens.
Smith has been outspoken about the challenges the BOP faces; chronic staffing shortages, crumbling infrastructure and poor medical care. Under Trump, the BOP has been given billions to upgrade its facilities but there have been significant changes in BOP operations
Cancelling Union Contract
The BOP abruptly cancelled its collective-bargaining agreement with the American Federation of Government Employees (AFGE) — stripping more than 30,000 correctional officers and staff of their union protections as of September 2025.
BOP leadership justified the move as necessary to remove what it described as a “roadblock to progress,” pledging continued civil-service protections. Critics warn the decision undermines employee safeguards, weakens workplace representation, and could worsen chronic staffing and safety problems in an already overstressed prison system. AFGE recently file a lawsuit to have the union agreement restored, so this will likely make its way through the courts. With no contract being honored now, BOP continues to make changes
Closure of Facilities
Many in the union are concerned about privatization of facilities. FCI Taft, a private facility operating a low security and minimum security camp was closed in 2020 as the COVID-19 pandemic spread. Taft was owned by the BOP and operated by Management & Training Corporation (MTC) under contract. The BOP determined that over $100 million in repairs were needed, a cost they were not willing to cover.
A similar fate was recently determined for FCI Terminal Island located in Los Angeles. The BOP announced this month that Terminal Island, which sits on the Pacific Ocean would close soon. An assessment conducted last year by an architectural and engineering firm identified more than $110 million in critical repairs needed at the prison over the next 20 years. FCP Pensacola, one of the oldest federal prison camps in the country, also closed in 2025. It is possible that the BOP will continue to evaluate closure of facilities. During her tenure, Peters announced the closure of 6 prison after the 2024 election, including FCI Dublin, the troubled women’s federal prison. If the BOP expands community placement options, look for more closures.
Congressional Oversight
The BOP was noted for its heated exchanges with Congress over the years. Former BOP Director Michael Carvajal, who took over during the beginning of the COVID-19 pandemic, had a difficult relationship with Congress where many members asked for his resignation. When Biden took over the presidency, he chose Peters who was often on Capitol Hill giving testimony but rarely did sparks fly. However, she continued to provide Congress with updates of a struggling Agency who gave her more lip service than action.
Since Peters dismissal, there has only been one Congressional Hearing involving the BOP and that was in February 2025 when Kathleen Toomey, who was the highest ranking BOP staff member to testify after the Peters was let go and the acting Director William Lathrop resigned after a few weeks on the job. At the time, Toomey stated that the BOP was working with nearly 6,000 fewer workers than it says it needs and it has incurred over $437 million in overtime. Toomey later left BOP as well.
Congress has yet to call on either Marshall or Smith to testify since they have taken on the leadership roles in the BOP. Such hearings would likely be dominated by partisan rhetoric associated with Ghislaine Maxwell’s controversial move to a prison camp and Trump’s ambitions for rebuilding Alcatraz.
The First Step Act and Halfway Houses
The Bureau of Prisons has made meaningful progress in improving implementation of the First Step Act — President Trump’s landmark legislation that allows eligible inmates to earn time credits toward early release and extended home confinement near the end of their sentences. Yet one of the greatest obstacles to fully realizing both the First Step Act and the Second Chance Act—which authorizes up to a year in community custody—is the limited capacity of halfway houses. Deputy Director Smith recently acknowledged this issue in a video, noting that current residential reentry center availability falls far short of the growing demand to place thousands of inmates in the community rather than in costly prisons. However, he stopped short of outlining a specific plan to expand these facilities.
Action To Be Taken
2026 will be a pivotal year for the BOP. It continues to struggle with hiring and the aggressive actions under the Department of Government Efficiency, once headed by Elon Musk, encouraged departures of all parts of government. The elimination of the union contract and the expansive hiring by Immigration and Customs Enforcement has led to departures among BOP ranks.
Deputy Director Smith has recently provided comments on the BOP’s website about changes that are coming. It appears that the BOP is contemplating more aggressive changes now that the union, at least for now, is out of the picture. Also, with billions added to upgrade facilities and hire people, changes will be coming. However, an exact plan or vision has yet to be laid out, but expect that to change early in 2026.