Story highlights A DOJ official said the Bureau of Prisons has 12 private prison contracts

The Justice Department said the move will increase the bureau's flexibility in housing inmates

Washington (CNN) The Department of Justice has rescinded guidance from August that discouraged the use of private prisons.

"This will restore (the Bureau of Prison's) flexibility to manage the federal prison inmate population based on capacity needs," the Justice Department said in a statement.

In August, then-deputy Attorney General Sally Yates directed the Bureau of Prisons to reduce its use of private prison contracts. In the August memo, she said private prisons had been used to house a prison population that had grown 800% between 1980 and 2013.

But, she said, the population is now on the decline, from 220,000 in 2013 to 195,000 in 2016.

A DOJ official said on background Thursday that the BOP has 12 private prison contracts, housing approximately 21,000 inmates.

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