Department of Homeland Security (DHS) Secretary Kristi Noem has agreed to scrap plans for a new immigration detention center in New Hampshire, Gov. Kelly Ayotte said Tuesday.

The Republican leader, who has been outspoken about banning sanctuary cities and strengthening border security, announced the decision after numerous concerns from Merrimack officials about the U.S. Immigration and Customs Enforcement (ICE) facility’s financial impact on the community.

Noem reportedly agreed after “productive discussions” during Ayotte’s visit to Washington, D.C., last week.

“I’m pleased to announce that the Department of Homeland Security will not move forward with the proposed ICE facility in Merrimack,” Ayotte said. 

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“I thank Secretary Noem for hearing the concerns of the Town of Merrimack and for the continued cooperation between DHS and New Hampshire law enforcement to secure our northern border, keep dangerous criminals off our streets and ensure our communities are safe.”

DHS confirmed to Fox News Digital that the decision was made in partnership with Ayotte, who Noem described as a strong ally in efforts to secure the nation’s borders.

“I appreciated my discussions with Governor Ayotte last week,” Noem said in a statement. “From banning sanctuary cities to strengthening law enforcement cooperation, New Hampshire has been a strong partner in securing our country, and we look forward to continuing our work together.”

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The proposed ICE facility was expected to house between 400 and 600 people and cost an estimated $158 million to renovate and convert.

However, local officials opposed the site earlier this year, saying the development would lead to higher taxes for Merrimack residents.

“There would be a $529,000 decrease in tax revenue,” the Merrimack Town Council said in a Jan. 23 letter to Noem. “This would result in an increase in the tax rate for our citizens.”

The town added that if the processing center is built, “potential difficulties and civil protest would necessitate” a police and fire rescue presence at the site.

“Again, there is a potential financial impact upon those departments and their budgets,” the town said. “As a result, this Town Council is against the establishment of an ICE processing center based upon the aforementioned financial impacts and concerns to our budget.” 

In an interview with The Dartmouth, Republican state Sen. Dan Innis also questioned the conversion plans. 

While the goal is to “get criminals off the streets and send them back home,” he urged the DHS to “take another look at our state and ask themselves if there is a better location.”

Officials said DHS also released an unfinished document that appeared to be a revised template for a proposed facility in Oklahoma, which was ultimately scrapped in late January.

The analysis, which claimed the proposed site would create hundreds of jobs and generate millions in revenue, incorrectly referred to the site’s “effects on the Oklahoma economy” and cited sales tax revenue, which New Hampshire does not collect. 

New Hampshire Speaker of the House Sherm Packard praised Ayotte on Tuesday’s decision to halt the plans, commending her “for working diligently behind the scenes to ensure New Hampshire’s concerns were heard.”

Ayotte’s office did not immediately respond to Fox News Digital’s request for comment.

​DHS Secretary Kristi Noem agreed to halt plans for a new ICE center after New Hampshire Gov. Kelly Ayotte raises community concerns during talks.