Denver will not move forward on a contract to outsource support for immigrants coming to the city, the mayor’s office said Thursday.

Mayor Michael B. Hancock provided little explanation for the reversal, except to say there remained “much more work to do” and that he would not be submitting a proposed contract with GardaWorld Federal Services for up to $40 million for migrant sheltering.

“With more than 500 Central and South American refugees, asylum-seekers and migrants still in our care, we continue to believe that contracting out shelter services is in the best interest of our guests, city taxpayers, and city employees and operations,” Hancock said in a statement.

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Hancock added: “The current financial and operational burden is not sustainable.”

The contract – which had an option for two, one-year renewals – was intended to alleviate the “staffing pressures on city operations.”

Services were to include shelter for up to 1,000 people, reception and intake services and overflow capacity at city motels.

Anticipating approval of the contract, GardaWorld had begun vetting shelter locations.

In an email to The Denver Gazette, GardaWorld officials said they respect the city’s decision and looked “forward to continuing to discuss ways we can assist the city in the future.”

GardaWorld has provided immigrant services in El Paso and San Antonio, Texas. The company was also one of three selected by Florida Gov. Ron DeSantis’ administration to relocate immigrants across the country. Last year, the presidential hopeful grabbed international headlines when he transported immigrants to Martha’s Vineyard.

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It’s unclear whether – once sworn in – Mayor Elect Mike Johnston’s administration will take up the GardaWorld contract and the new fund.

Johnston did not respond to a phone call and email seeking comment.

Last month, the Denver City Council gave initial approval for a new fund to exclusively support the city’s response to influx of immigrants from the southern border.

Since December, Denver has spent $19.7 million to provide shelter and services to more than 12,700 immigrants, according officials.

Of that amount, Denver has been reimbursed at least $13 million from the state and federal government.

The number of immigrants fleeing Central and South America – particularly Venezuela – is illustrative of the U.S. border crisis with Mexico, which has seen a roughly 40% increase in those seeking entry.

The immigration dilemma has spilled over into interior cities like Denver more than 600 miles from the Mexican border in El Paso, Texas.