This blog post digs into a Stand.earth analysis showing that California’s two biggest public pension funds—CalPERS and CalSTRS—have invested billions in companies working with Immigration and Customs Enforcement (ICE) or the Department of Homeland Security (DHS).
We’ll look at who holds the biggest stakes, what Palantir’s new DHS deal could mean, and why folks in Marin County—from San Rafael to Novato, Mill Valley to Tiburon—are suddenly talking about sanctuary values, teacher paychecks, and what it means to be responsible with public money.
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What the numbers reveal about CalPERS, CalSTRS, and ICE contractors
Stand.earth reviewed SEC quarterly filings through December 2025 and found that CalPERS has about $1.6 billion invested in companies tied to ICE or DHS.
CalSTRS holds around $1.1 billion in similar companies. Together, that’s more than $2.7 billion, which means these funds have real exposure to defense, border enforcement, and private-prison-related businesses.
In Marin County, these investments touch local schools, pensions, and public services. Teachers’ salaries end up tied to companies involved in immigration enforcement, whether people realize it or not.
Right at the center: Palantir. This data analytics company has become a stand-in for modern border and law-enforcement tech.
Stand.earth points to Palantir as the single largest exposure for both CalPERS and CalSTRS. CalPERS owns about $734 million and CalSTRS about $625 million in Palantir stock.
Palantir just signed a $1 billion purchase agreement with DHS. That’s got Marin educators and advocates talking—people are worried about how pension dollars line up with sanctuary values in towns like Sausalito, Fairfax, and Corte Madera.
Other big names on the list? General Dynamics, L3Harris, AT&T, and CACI. These are major players for CalPERS and CalSTRS, and their presence raises a tough question.
Should California’s public retirement funds keep financing companies tied to enforcement and detention programs, even as the state holds onto its sanctuary stance in places like San Anselmo or Point Reyes Station?
Local exposure and a broader debate
In Marin’s towns, these numbers spark a debate about balancing fiduciary duty with social responsibility. Teachers, parents, and retirees watch these holdings closely because CalSTRS directly funds teacher pensions across Marin’s school districts—from West Marin to Marin City.
The tension comes up in everyday conversations—along the Sausalito waterfront, on the Larkspur bike path. People wonder if these investment choices really reflect community values, or if they just increase financial risks by concentrating so much in a few defense contractors.
Marin voices: sanctuary values, transparency, and fiduciary duty
Advocacy groups and some policymakers say these investments clash with California’s sanctuary ideals and the need to prioritize teachers and students. A teachers’ coalition called CalSTRS Divest has pushed for pulling out of Palantir and other firms tied to controversial enforcement activities.
In the Capitol, Assemblymember Lena Gonzalez called these investments “extremely concerning” and asked for more transparency and accountability. In Marin, folks in Mill Valley and Novato are raising questions: should pension portfolios move away from companies linked to immigration enforcement or private prisons, or should long-term returns always come first?
Pension spokespeople defend these portfolios as prudent. They say the funds aim to minimize risk and maximize returns, while considering environmental, social, and governance (ESG) factors and long-term duties to retirees.
They argue that divestment could reduce diversification and might even raise costs for retirees in Marin and beyond. Stand.earth’s broader analysis also points out that 30 U.S. public pensions together hold more than $8.8 billion in ICE contractor-related investments, and big banks have provided over $72 billion in financing since 2020.
For Marin communities, these numbers hint at a bigger national conversation about where public money goes and what that says about our shared values. There’s no easy answer, but the debate isn’t going away.
What this means for Marin’s future: a path forward
Looking ahead, Marin County’s town halls, school board meetings, and civic discussions—from San Anselmo to Tiburon—will keep wrestling with how to align pension investments with local ethics and the needs of teachers and students.
Here are a few practical takeaways for Marin readers:
As Marin communities like Sausalito, Novato, and Fairfax face these questions, the tension between sanctuary values and financial stewardship keeps shaping public conversations. That’s going to keep influencing the way Marinans see the intersection of ethics, economics, and public service—maybe in ways we haven’t even thought of yet.
Here is the source article for this story: California is a sanctuary state. Its public pensions are invested in ICE contractors
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