California Pension Funds Invest Heavily in ICE Contractors

California’s largest pension funds have reportedly put over $2.7 billion into firms working with Immigration and Customs Enforcement (ICE) and the Department of Homeland Security, according to a recent analysis.

CalPERS, which manages retirement funds for public employees, has invested around $1.6 billion in various tech firms like Palantir, weapons manufacturers such as General Dynamics and L3Harris, alongside telecommunications giants AT&T and CACI. The nonprofit group Stand.earth conducted the analysis, which was published recently.

CalSTRS, the fund specifically for public school teachers’ pensions, has put in about $1.1 billion into these investments.

The largest single investment was in Palantir, with CalPERS contributing $734 million and CalSTRS $625 million.

Data for this analysis was taken from quarterly filings submitted to the Securities and Exchange Commission up to December 2025.

Richard Brooks from Stand.earth highlighted a disconnect: teachers in California, which prides itself on being a sanctuary state, are witnessing family separations because of aggressive immigration policies while their retirement funds grow as a result.

“It’s crucial that our investments reflect the values held by California residents,” he stated. “It’s troubling that these pension funds overlook the reality that their members’ savings are enabling ICE’s actions against families.”

Palantir has long supplied data analytics tools to immigration enforcement and recently renewed its agreement with the Department of Homeland Security worth $1 billion.

A spokesman for CalPERS, James Scully, pointed out that the fund doesn’t typically comment on specific investments but does take environmental, social, and governance issues into account.

“When an issue arises, we look at it, gather the facts, and seek solutions,” Scully added.

With over $550 billion in assets, CalPERS is the largest pension fund in the U.S., reporting an 11.6% profit from the previous fiscal year.

Both funds aim to balance risk with return on their investments. CalSTRS spokeswoman Barbara Zumwalt remarked that the organization focuses on the long-term perspective in managing its global portfolio.

“Our mission is to ensure the financial stability of California’s current and retired public school teachers,” Zumwalt shared.

According to CalSTRS, approximately 10% of annual compensation for California educators is directed toward their pension fund.

For the past couple of years, teachers from cities like Los Angeles and San Diego, part of the CalSTRS Divest movement, have been urging the pension funds to divest from Palantir and similar companies, including those linked to international conflicts.

Andrea Pritchett, a middle school teacher from Berkeley and a member of this group, noted that the harm caused by Palantir extends beyond borders, affecting both overseas individuals and people in the U.S.

Members of CalSTRS Divest believe such investments contradict the fund’s foundational purpose. The fund has indicated investments are assessed for their potential harm to public health, yet Pritchett expressed frustration over the lack of responsiveness from CalSTRS.

“They maintain that their fiduciary responsibilities take precedence over other considerations,” she explained.

Interestingly, both CalPERS and CalSTRS have also resisted divesting from fossil fuels. Although they announced a strategy a few years back to increase low-carbon assets, they still hold considerable investments in major oil companies like ExxonMobil and Chevron.

In 2024, a legislative proposal was introduced that would mandate these pension funds to divest from fossil fuels by 2031; however, it was ultimately withdrawn amid controversy.

Gonzalez, the bill’s sponsor, described the pension funds’ associations with ICE contractors as troubling, emphasizing the need for transparency regarding where workers’ retirement funds are allocated.

“We should demand clear accountability, especially as billions are funneled into contracts that impact the lives of Californians,” she commented.

Stand.earth’s analysis revealed that 30 U.S. public pension plans collectively invested over $8.8 billion in ICE contractors, including private prison companies like CoreCivic and Geo Group. Notably, the New York State Common Retirement Fund and the Florida Board of Supervisors were also involved in these investments.

Research from Stand.earth further identified that top U.S. banks, including JPMorgan Chase and Bank of America, provided over $72 billion in loans to ICE contractors since 2020.

Wells Fargo criticized the analysis for mischaracterizing their banks’ loans, clarifying that the figures included lines of credit and not just direct loans. Other banks contacted for comment had not responded.