Civil liberties

Trump Admin Lifts Hold on $2M ICE Spyware Contract

SEP 3 2025·Updated SEP 4 2025

Story

Above: An agent from U.S. ICE's Homeland Security Investigations (HSI) unit searches a vehicle in Washington. Image credit: Al Drago/Bloomberg/Getty Images

The Facts

U.S. Immigration and Customs Enforcement (ICE) on Saturday lifted a stop work order for a $2 million contract with Israeli spyware company Paragon Solutions, according to official procurement records. The contract was originally signed on Sept. 27, 2024, but was suspended on Oct. 8 of that year following a Biden administration review.
Substack
guardian
The Biden administration placed the hold due to concerns it potentially violated a March 2023 executive order restricting U.S. procurement of commercial spyware that poses counterintelligence risks or risks of improper use by foreign governments. The executive order aimed to establish guardrails around the U.S. government's use of spyware technology.
The Independent
guardian
Paragon Solutions was acquired in late 2024 by Florida-based private equity firm AE Industrial Partners for approximately $500-$900 million and merged with Virginia-based cyber intelligence firm REDLattice. The acquisition made Paragon American-owned, facilitating the Trump administration's decision to lift the stop work order.
Substack
Bloomberg.com
Paragon's spyware tool, Graphite, can hack into mobile phones and access encrypted applications, allowing users to track locations, read messages, view photographs and use devices to eavesdrop. The company was founded by former Israeli Unit 8200 commander Ehud Schneorson and former Prime Minister Ehud Barak.
Haaretz
guardian
WhatsApp alleged Paragon's technology was used against approximately 90 people in Europe, including journalists and activists. This led to a scandal in Italy, where the spyware was said to have targeted pro-immigration activists and reporters. Following the controversy, Paragon terminated its contracts with Italian government agencies in June 2024.
Infosecurity Magazine
Bloomberg.com
The contract provides ICE with a "fully configured proprietary solution, including license, hardware, warranty, maintenance and training" as part of the Trump administration's expanded immigration enforcement operations.
Substack
Haaretz

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The Spin

Pro-establishment narrative

Renewing this contract gives ICE a necessary tool for legitimate law enforcement operations against serious criminals and national security threats. Paragon has positioned itself as an ethical spyware company that only works with democracies and it maintains strict policies against targeting civil society members. The company's acquisition by American firms and integration with U.S. cyber intelligence operations addresses previous counterintelligence concerns.

Haaretz

Paragonsolutions

Establishment-critical narrative

This development signals a dangerous erosion of civil liberties protections during ICE's unprecedented immigration crackdown. Spyware like Graphite poses profound threats to free speech and privacy, having already been misused against journalists and activists. The quiet lifting of safeguards without proper vetting raises serious concerns about executive branch accountability and the potential for unlawful surveillance of Americans and vulnerable immigrant communities.

Knight First Amendment Institute

Metaculus Prediction

Editor's note

This story currently has limited reporting from right-leaning sources. We will continue to monitor all major outlets and update our coverage as additional perspectives become available.