OFDT was established and activated in September 2001 by directive of Congress Pub. L. 106-553, app. B, 114 Stat. 2762A-52 (2000) to exercise all power and functions authorized by law relating to the detention of federal prisoners and aliens awaiting adjudication and/or removal from the United States.

Historically, Federal detention has been the responsibility of both the USMS and the Immigration and Naturalization Service, now ICE. The BOP plays a supporting role by housing a portion of Federal detainees in BOP stand-alone detention centers and detention units in correctional facilities. State, local and private detention facilities also provide detention space to the Federal government.

As directed by Congress, the objective of the Federal Detention Trustee is to centralize responsibility for detention in order to better manage and plan for needed detention resources without unwanted duplication of effort or competition with other government components. With this broad authority and responsibility, the Federal Detention Trustee works to implement business process improvements and identify areas where operational efficiencies and cost savings can be realized.