A California gubernatorial race is exposing a stark contradiction within one of its leading contenders. Billionaire Tom Steyer, campaigning on a platform of challenging elites and reforming immigration enforcement, faces mounting scrutiny over his past investments – investments that directly benefited the very system he now publicly condemns.
Steyer built his $2 billion fortune at the helm of Farallon Capital, a massive hedge fund. While now advocating for policies targeting corporate tax loopholes and climate change, Farallon’s portfolio included significant holdings in coal companies and, crucially, private prison firms. This history is now a central point of attack from rivals and opponents alike.
The most pointed criticism comes from Democratic rival Katie Porter, who has publicly questioned Steyer’s sincerity. She highlighted a $90 million investment Farallon made in CoreCivic, a private prison operator running facilities used by ICE. Porter’s challenge is direct: if Steyer vows to prosecute ICE agents, what does that make an investor in the facilities where they operate?
Steyer acknowledges the investment as a “mistake,” claiming it served as a “wake-up call” that led him to leave the firm and pursue philanthropic endeavors. He insists it prompted a fundamental shift in his priorities, but the timing and scale of the investment continue to fuel doubts about his commitment to the progressive ideals he now espouses.
His proposed solution to the issues surrounding ICE is radical: a five-point plan to effectively dismantle the agency, including empowering state prosecutors to pursue cases against its agents and bolstering legal protections for detained immigrants. He boldly states his goal is to “put ICE in jail.”
This aggressive stance has drawn fierce opposition from Republican candidates, who label his plan “insanity” and accuse him of inciting violence against law enforcement. They argue it’s a dangerous extension of current border policies, placing a target on the backs of federal agents.
Steyer’s foray into politics isn’t new. He previously mounted a costly, though ultimately unsuccessful, bid for the presidency in 2020, spending nearly $250 million of his own wealth. Now, he’s pouring an even greater sum – $112 million – into his gubernatorial campaign, dwarfing the resources of his competitors.
Despite his wealth, Steyer seeks alignment with progressive figures like Senator Bernie Sanders, who has called him a “friend” while simultaneously expressing reservations about billionaire involvement in politics. This complex relationship underscores the inherent tension between Steyer’s vast fortune and his progressive messaging.
Beyond immigration, Steyer champions policies like universal healthcare and free college, and has a track record of successful ballot measure campaigns focused on climate action and closing corporate tax loopholes. He’s demonstrated an ability to translate his wealth into political influence, shaping California’s political landscape.
He has garnered endorsements from progressive representatives, like Ro Khanna, who praise his commitment to taxing the wealthy and advocating for single-payer healthcare. However, the shadow of his past investments continues to loom large, forcing voters to grapple with the question of whether his transformation is genuine or merely a calculated political maneuver.
The race is crowded, with several prominent Democrats vying for the governorship. The withdrawal of a previously leading candidate due to serious allegations has further complicated the dynamics, leaving voters to carefully consider the contrasting visions and, crucially, the past actions of those seeking to lead the state.
