Target Hospitality issued a press release on June 10, 2024, announcing that it had “received notice that the U.S. government intends to terminate the existing South Texas Family Residential Center (‘STFRC’) services agreement with Target’s migrant programming partner (‘STFRC Partner’), effective in 60 days, or on or about August 9, 2024 (‘Effective Date’).” Target Hospitality stated that it “intends to provide operational and financial updates giving effect to the termination prior to June 30, 2024.”

Following this news, Target Hospitality’s stock price dropped over 31% on June 11, 2024.