California Pension Funds Invest Billions in Companies Linked to ICE, Sparking Controversy
California's two largest pension funds, CalPERS and CalSTRS, have invested over $2.7 billion in companies that contract with Immigration and Customs Enforcement (ICE) and the Department of Homeland Security. This includes significant investments in tech firm Palantir, weapons manufacturers General Dynamics and L3Harris, and telecommunications companies AT&T and CACI. The analysis, conducted by Stand.earth, highlights a contradiction between California's sanctuary state status and the pension funds' investments in companies that support federal immigration enforcement. CalPERS, the largest pension fund in the U.S., has invested $734 million in Palantir, while CalSTRS has invested $625 million. Despite calls from educators and advocacy groups to divest from these companies, the pension funds have maintained their investment strategies, citing fiduciary responsibilities and long-term investment views.