Attorney General Eric Holder on Monday announced new regulations for the more than 200 halfway houses operated by federal contractors , requiring them to provide transportation and allow inmates to use cell phones to reconnect with family and friends , and to start looking for jobs . The new regulations also require the half way houses to provide mental and substance abuse treatment to inmates , and are part of Holder 's `` Smart on Crime '' initiative , under which prosecutors are seeking ways to reduce sentences for certain non-violent drug offenders . The Justice Department said Holder 's moves can be at least partly credited for the biggest drop in the federal prison population , a reduction of 4,000 inmates compared to the end of last fiscal year in September . Federal prisons incarcerate 216,000 people in the United States , which accounts for only 5 % of the world 's population but holds 25 % of its prisoners . While states have made moves to cut prison populations , partly due to budget reasons , changes in the federal prison population has lagged for some time . The new Justice Department regulations affect contractors that run halfway houses for the United States Bureau of Prisons , which uses such facilities to hold inmates near the end of their sentences as they prepare to transition to life outside prison . Holder said the changes `` will enhance the programs that help prisoners overcome their past struggles , get on the right path , and stay out of our criminal justice system . ''
Justice Department shut down more than 200 prisons run by inmates . Rules require transportation for inmates and help for them to raise family , get work . Government says steps taken are reducing federal prison population .