The Department of Homeland Security under former Secretary Kristi Noem approved $1 billion in border wall construction contracts to a Texas firm previously accused in court filings of employing undocumented migrants and arming them as security guards, raising fresh scrutiny over federal contracting practices tied to President Donald Trump's border security agenda.
The contracts were awarded to SLSCO Ltd, a construction company based in Galveston, Texas, to build new sections of the U.S.-Mexico border barrier in Del Rio and Laredo, Texas, according to government records and reports examining the deals.
The agreements were finalized shortly before Noem's expected departure from the Department of Homeland Security. Federal contracting rules require department heads to personally approve large agreements, and officials confirmed that Noem directly authorized the contracts.
Under department procedures, the homeland security secretary must sign off on contracts exceeding $100,000, placing the approvals within Noem's direct authority.
The new deals come as the Trump administration continues expanding the southern border barrier while pursuing aggressive deportation policies and broader immigration enforcement initiatives.
The $1 billion contract awards add to a long history of federal projects involving SLSCO, which previously secured roughly $2 billion in border wall construction bids during Trump's first administration.
SLSCO also holds a separate federal contract to construct a controversial migrant detention facility in Florida, often referred to as "Alligator Alcatraz."
However, the company has faced serious allegations in past legal filings related to its labor practices.
A 2019 lawsuit filed by two former security contractors-identified as a former FBI agent and a former San Diego County Sheriff's deputy-accused SLSCO of illegally employing undocumented migrants and providing them with firearms at construction sites in California.
The lawsuit alleged "human and weapons smuggling", claiming that company managers knowingly transported workers from Mexico and used them both as laborers and armed guards.
According to the legal complaint, the whistleblowers discovered undocumented migrants working at construction sites during internal security reviews.
The lawsuit further alleged that armed Mexican nationals working as security guards became involved in a gunfire exchange in July 2019 with another group of migrants attempting to steal construction materials from the site.
The contractors said they reported the incident and the alleged hiring practices to company leadership but claimed management failed to intervene.
The lawsuit also alleged that after one of the contractors notified federal authorities about the situation, the company terminated both whistleblowers.
The former security personnel argued that their dismissals constituted retaliation for reporting illegal activities and safety concerns.
The case was later voluntarily dismissed, and SLSCO has not publicly addressed the specific allegations detailed in the complaint.
The contract approvals have drawn additional attention because they occurred during a period of mounting controversy surrounding Noem's tenure at the Department of Homeland Security.
President Donald Trump removed Noem from her position last week after a series of disputes over department spending and contracting decisions.
One of the most contentious issues involved a $143 million government payment to a firm that later subcontracted work to the husband of Noem's press secretary.
The arrangement was tied to a $220 million national television advertising campaign encouraging migrants to self-deport.
The campaign included promotional footage showing Noem riding horseback near Mount Rushmore while delivering messaging about immigration enforcement.
Trump later told reporters he "wasn't thrilled" with the advertisement spending and said he had not been aware of the project in advance.
The president formally dismissed Noem from her post two days after she testified under oath that Trump had been informed about the campaign.
