Business
The Surveillance Tools That Could Power Trump’s Immigration Crackdown
Apps and ankle monitors that track asylum seekers in real time wherever they go. Databases packed with personal information like fingerprints and faces. Investigative tools that can break into locked phones and search through gigabytes of emails, text messages and other files.
These are pieces of a technology arsenal available to President Trump as he aims to crack down on illegal immigration and carry out the largest deportation operation in American history. To do so, his administration can tap a stockpile of tools built up by Democrats and Republicans that is nearly unmatched in the Western world, according to an analysis by The New York Times.
A review of nearly 15,000 contracts shows that two agencies — Immigration and Customs Enforcement, and Citizen and Immigration Services — have spent $7.8 billion on immigration technologies from 263 companies since 2020.
The contracts, most of which were initiated under the Biden administration, included ones for tools that can rapidly prove family relationships with a DNA test to check whether, say, an adult migrant crossing the border with a minor are related. (Families are often treated differently from individuals.) Other systems compare biometrics against criminal records, alert agents to changes in address, follow cars with license plate readers, and rip and analyze data from phones, hard drives and cars.
The contracts, which ranged in size, were for mundane tech like phone services as well as advanced tools from big and small companies. Palantir, the provider of data-analysis tools that was co-founded by the billionaire Peter Thiel, received more than $1 billion over the past four years. Venntel, a provider of location data, had seven contracts with ICE totaling at least $330,000 between 2018 and 2022.
The Biden administration used many of these technologies for immigration enforcement, including in investigations of drug trafficking, human smuggling and transnational gang activity. How Mr. Trump may apply the tools is unknown, especially as the whereabouts of many immigrants are known and the government faces a shortage of officers and facilities to detain people.
But Mr. Trump has already made clear that his immigration agenda is strikingly different from his predecessor’s. This week, he announced a barrage of executive actions to lock down the borders and expel migrants and those seeking asylum.
“All illegal entry will immediately be halted and we will begin the process of returning millions and millions of criminal aliens back to the places from which they came,” Mr. Trump said at his inauguration on Monday.
Tech products are almost certain to feature in those plans. Thomas Homan, the administration’s border czar, has discussed meeting with tech companies about available tools.
“They’ll certainly use all tools at their disposal, including new tech available to them,” said John Torres, a former acting assistant secretary for ICE.
A White House spokesman declined to comment. ICE said in a statement that it “employs various forms of technology, and information to fulfill its mission, while protecting privacy, and civil rights and liberties in accordance with applicable laws.”
Eric Hysen, the chief information officer for the Homeland Security Department under President Biden, said ICE and other immigration agencies have vast responsibilities. Many tools were designed for investigations of drug traffickers and other criminals, not tracking migrants, he said, while other technology like license plate readers could be used to ease traffic at border crossings.
The federal government has had longstanding internal policies to limit how surveillance tools could be used, but those restrictions can be lifted by a new administration, Mr. Hysen added. “Those are things that can change, but they are not easy to change,” he said.
Creating an arsenal
The buildup of immigration tech goes back to at least the creation of the Homeland Security Department after the Sept. 11, 2001, attacks. Interest in the tools fueled a boom that is expected to grow under Mr. Trump. Leaders in Europe and elsewhere are also investing in the technologies as some adopt increasingly restrictive immigration policies.
Many companies are racing to meet the demand, offering gear to fortify borders and services to track immigrants once they are inside a country.
In the United States, the beneficiaries include the makers of GPS tracking devices, digital forensics tools and data brokers. Palantir and others won contracts with ICE for storing and analyzing data. Thomson Reuters, Lexis Nexis and credit rating companies provide access to databases of personal information that can help government agents find the homes, workplaces and social connections of citizens and noncitizens alike.
Clearview AI, a facial recognition firm, had contracts worth nearly $9 million, according to government records. Cellebrite, an Israeli phone-cracking company, sold ICE about $54 million in investigative tools. The F.B.I. famously used Cellebrite tools in 2016 to unlock the iPhone of a mass shooter in San Bernardino, Calif., to aid the investigation.
Investors have taken note. The stock price of Geo Group, a private prison operator that sells monitoring technology to ICE, has more than doubled since Mr. Trump won November’s election. Cellebrite’s shares have also nearly doubled in the past six months and Palantir’s shares have risen nearly 80 percent.
Tom Hogan, Cellebrite’s interim chief executive, said the company was proud to help “keep our homeland and borders safe with our technology.” Thomson Reuters said in a statement that its technology is used by agencies to support investigations into child exploitation, human trafficking, drug smuggling and transnational gang activity. Lexis Nexis, Clearview and Palantir did not respond to requests for comment.
In an investor call in November, Wayne Calabrese, Geo Group’s chief operating officer, said the company expected the “Trump administration to take a much more expansive approach to monitoring the several millions of individuals” who were going through immigration proceedings but had not been detained.
“We have assured ICE of our capability to rapidly scale up,” he said.
In a statement for this article, Geo Group, based in Boca Raton, Fla., said it looked forward to supporting the Trump administration “as it moves quickly to achieve its announced plans and objectives for securing the country’s borders and enforcing its immigration laws.”
Tracking locations
One technology that may be used immediately in mass deportations can identify the exact location of immigrants, experts said.
About 180,000 undocumented immigrants wear an ankle bracelet with a GPS tracking device, or use an app called SmartLink that requires them to log their whereabouts at least once a day. Made by a Geo Group subsidiary, the technology is used in a program called Alternatives to Detention. The program began in 2004 and expanded during the Biden administration to digitally surveil people instead of holding them in detention centers.
Location data collected through the program has been used in at least one ICE raid, according to a court document reviewed by The Times. In August 2019, during the first Trump administration, government agents followed the location of a woman who was being tracked as part of the program. That helped the agents obtain a search warrant for a chicken processing plant in Mississippi, where raids across the state resulted in the detention of roughly 680 immigrants with uncertain legal status.
Sejal Zota, the legal director of Just Futures Law, a group that opposes government surveillance programs, said the Trump administration would likely need to rely on digital surveillance tools as it would be impossible to physically detain vast numbers of individuals without legal status.
“While this administration wants to scale up detention, and I believe that it will find ways to do that, it will take time,” she said. “I think that this program will continue to remain important as a method to surveil and control people.”
Troves of data
The Trump administration also has access to private databases with biometrics, addresses and criminal records. Agents can obtain records of utility bills for roughly three-quarters of Americans and driver’s licenses for a third of Americans, according to a 2022 study by Georgetown University.
These tools could potentially be used to track people high on ICE’s priority list, like those with a criminal history or people who do not show up for immigration court hearings. Investigators could use the databases to find someone’s automobile information, then use license plate readers to pinpoint their location.
During the first Trump administration, ICE could access driver’s license data through private companies in states like Oregon and Washington, even after the state tried cutting off access to the information to the federal government, according to the Georgetown study.
Mr. Torres, the former ICE official, said this information was critical for agents to find people.
“We know people give false addresses,” he said. Agents can use “big data sharing to triangulate their location based on habits.”
That has raised privacy concerns. “Privacy harms may seem theoretical on paper, but they’re never theoretical for vulnerable people on the front lines,” said Justin Sherman, a distinguished fellow at Georgetown Law’s Center on Privacy and Technology.
During the Biden administration, ICE also bought software from Babel Street, a tech company that gathers data from thousands of publicly available websites and other sources. Its services can assess people as potential security risks based on data. Babel Street did not respond to requests for comment. ICE has also paid about a dozen companies for software that can be used to overcome passcodes, surface deleted files and analyze email inboxes.
Some immigration experts have questioned how much of this technology the Trump administration may use. Some tools are most relevant for targeted investigations, not for widespread deportations, said Dave Maass, the director of investigations at the Electronic Frontier Foundation, a civil liberties group.
“What they are buying and what is actually useful may be totally different things,” said Mr. Maass. Regardless, he said, tech companies “are going to make a lot of money.”
Methodology
The New York Times analyzed government contract data from usaspending.gov. The data covered spending from Immigration and Customs Enforcement and Citizenship and Immigration Services from 2020 to the present. The Times filtered the data to technology-related contracts, using recipient information and contract description. The Times looked at money that had been spent, not just pledged, to calculate the total spending and total number of tech companies.
Business
Schwab Affiliate Halts Customer Donations to Southern Poverty Law Center
The donor-advised fund affiliated with Charles Schwab, DAFgiving360, has suspended account holders’ ability to give money to the Southern Poverty Law Center, a civil rights group.
Last week, the Justice Department indicted the group and accused it of financial crimes. This week, the donor-advised funds that bear Fidelity’s and Vanguard’s names also cut the group off.
A spokeswoman for the Schwab-affiliated fund said, “If a governing body of a charity declares an investigation into a charity it oversees, DAFgiving360 may suspend grants to the organization.” She would not provide a list of other organizations that it has suspended.
Donor-advised funds allow individuals to create accounts, donate cash or securities into them and take a tax deduction for the full amount that year. Then they can parcel out donations to charities and other nonprofits over many years.
“Giving to your favorite charity has never been easier” is the language that DAFgiving360 uses on its website. Charles Schwab lists the account balance right next to investment account balances on its own website.
DAFgiving360 is also careful, however, to use specific language that gets to the legal reality of how the funds work. Users can “recommend” grants to “eligible” charities, for example, which means DAFgiving360 controls the money and the account holder is technically just advising.
This is almost never a practical issue for account holders; donor-advised funds generally rubber-stamp donation requests. But in the wake of the criminal indictment, which accused the S.P.L.C. of paying informants money that contributed to the extremism that it opposes, President Trump said he believed that the S.P.L.C. was behind the racist Charlottesville, Va., riots in 2017.
Mr. Trump did not provide evidence for his allegations against the center. And many Fidelity and Vanguard customers are furious about the move against the S.P.L.C.
DAFgiving360 customers are expressing similar sentiments. “This is too safe a position, and they shouldn’t have done it,” Jani Rachelson, a retired labor lawyer in New Jersey who was unable to donate to the S.P.L.C., said of Schwab’s action. “Compliance in advance is the scourge of our life these days.
DAFgiving360 said in its statement that it applies its policies consistently across all charitable organizations, regardless of political viewpoint or orientation. In the past, a Schwab predecessor charitable-fund entity stopped granting money to National Rifle Association-affiliated charities when an active investigation was underway. The N.R.A. does appear in DAFgiving360 search results now for people making grant requests.
Prudent trustees with decision-making authority do consider indictments of charities before approving donations to them.
At Merrill Lynch, however, the donor-advised fund operation relies on the Internal Revenue Service for guidance. Since the agency hasn’t revoked S.P.L.C.’s nonprofit status, Merrill Lynch’s donor-advised funds are allowing donations to go through for now.
Meanwhile, Fidelity’s, Schwab’s and Vanguard’s actions raise complicated questions.
“Why not other charities that have also been attacked by the administration, including many major universities,” said Roger Colinvaux, a nonprofit law expert and professor at Catholic University’s Columbus School of Law, via email. “The incident thus raises questions of how DAF sponsors draw the line and whether they are succumbing to political pressure or advancing their mission.”
In March, the Justice Department filed a civil lawsuit against Harvard University, accusing it of civil rights violations and saying it “tolerated antisemitic mobs of students.” As of Friday morning, the “recommend a grant” page of the DAFgiving360 website returned many options from a “Harvard University” search.
Business
Google, Nvidia and other tech titans sign AI deal with the Pentagon
Eight technology companies, including Google, Nvidia and SpaceX, have struck deals with the Pentagon to help the U.S. military gain an edge on the battlefield.
“These agreements accelerate the transformation toward establishing the United States military as an AI-first fighting force and will strengthen our warfighters’ ability to maintain decision superiority across all domains of warfare,” the Department of Defense said Friday.
The companies will deploy their AI technology on the department’s “classified networks” for “lawful operational use,” according to the agency.
OpenAI, Microsoft, Amazon Web Services, Oracle and AI startup Reflection are among the companies that agreed to work with the Pentagon.
The agreements underscore how tech companies are expanding their work with the U.S. military even as some workers raise concerns about the use of AI for autonomous weapons and mass surveillance. Anthropic, the San Francisco company behind the chatbot Claude, clashed with the Pentagon earlier this year over whether there were adequate safeguards around the military’s use of its technology.
The Department of Defense accused Anthropic of trying to “seize veto power” over military decisions, though the company pushed back against that characterization. The agency labeled Anthropic a supply chain risk, and the Trump administration directed federal agencies to stop using the company’s tools, setting off a legal battle over that designation.
This week, hundreds of Google employees urged its chief executive, Sundar Pichai, to reject the use of its AI systems for classified workloads to ensure that its technology isn’t used in “inhumane or extremely harmful ways.” Harmful use may occur without their knowledge since the work is classified, workers said in the letter.
Google, Reflection and SpaceX didn’t respond to a request for comment. The Department of Defense didn’t say how much each company was being paid. A Pentagon official said some of the companies have active contracts while others have made agreements but formal contract are forthcoming.
In an interview with CNBC, the Pentagon’s chief technology officer, Emil Michael, said the department wanted to diversify the companies it worked with following its dispute with Anthropic.
“Guardrails are something that are negotiable based on what they are with all the companies, and they have different views on that,” he told CNBC. The guardrails also have to be consistent with the government’s values and restrictions, he added.
A source familiar with Nvidia’s Pentagon deal said the agreement involves work with its “Nemotron” AI models, which are used to build AI agents that can complete tasks, not its chips. The deal includes language that the use of the models will be consistent with civil liberties, constitutional rights and applicable law, the source said.
OpenAI said the deal announced by the Department of Defense refers to the agreement they struck with the agency earlier this year.
The company said that it wanted “the people defending the United States to have the best tools.”
OpenAI, which faced backlash for striking a deal with the Pentagon after the Anthropic fallout, said in March that its technology wouldn’t be used for mass domestic surveillance, high-stakes automated decisions or to direct autonomous weapons.
Other tech companies, such as Microsoft, Oracle and Amazon Web Services, have also said they want to support the military and ensure they have access to the best AI tools.
“We look forward to continuing to support the Department of War’s modernization efforts, building AI solutions that help them accomplish their critical missions,” Amazon Web Services spokesperson Tim Barrett said in a statement.
Business
Stocks and Oil Prices Sent Conflicting Signals in April Amid Havoc of Iran War
Lately, financial markets appear confused.
Oil prices recently hit their highest level since the start of the war in Iran, stoking broad worries about inflation and a global energy crisis.
Yet, it has been the best month for the stock market of President Trump’s second term. The S&P 500 ended April nearly 10 percent higher than where it ended March.
The last time the index rose more than 10 percent in a month was in November 2020, after Joseph R. Biden Jr. was elected president and early trials for Covid-19 vaccines showed promising results. On Friday, the S&P 500 rose a further 0.5 percent, putting it on course for a fifth straight week of gains.
To many outside observers, it seems incongruous that the oil market can be sending such a dour signal, while stocks reflect a strong sense of investor optimism.
But in this unusual moment, according to analysts and traders, bullish and bearish market signals can both be true.
While the stock market reacts to day-to-day news, it is primarily concerned with how that news affects the longer-term outlook for company earnings. Stocks initially fell when the United States and Israel attacked Iran on Feb. 28, reflecting uncertainty about the war’s duration, its impact on energy supplies and the fallout for corporate America.
Stocks began to rise again after the Trump administration and Iran started to de-escalate at the end of March, moving toward a cease-fire on April 8. The standoff between the countries has not ended, a peace agreement has not been reached, but for stock investors, the expectation is that the disruption to oil markets and supply chains won’t last much longer.
And the economic impact of the war, at least as far as the United States is concerned, has been manageable. Data on Thursday showed that the U.S. economy grew at an annual pace of 2 percent in the first three months of this year, boosted by spending on infrastructure by many of the big tech companies that have led the S&P 500 stock index to repeated new highs.
This week, Alphabet, Amazon, Microsoft and Meta, which collectively account for 20 percent of the S&P 500’s market value, said they had spent a combined $130 billion on data centers. The share prices of these members of the so-called Magnificent 7, a group of companies that also include Apple, Nvidia and Tesla, rose nearly 15 percent in April.
Strong earnings in other industries have also buoyed the market. Roughly a third of the companies in the S&P 500 have reported their financial results for the first quarter, and their average growth in earnings stands at roughly 15 percent, on course for a sixth straight double-digit quarterly rise.
Oil prices are a much shorter-term measure of investor sentiment than stock indexes. The oil market is primarily traded using futures contracts, which are derivatives that fix the price today for delivery at a specified date in the future. The most frequently cited oil prices refer to the next month or two. That means that changes in the conflict that could extend or shorten its duration by a few weeks show up in the price of oil but not necessarily in the stock market. Oil traders are fixated on the price of a barrel of crude in July, for example, while pension fund managers are thinking about market returns many years in the future.
This week, a deadlock over the future of Iran’s nuclear program appeared to threaten the fragile cease-fire with the United States, helping to push the price of Brent crude, the international oil benchmark, to a four-year high, of over $120 per barrel on Thursday.
But investors appear to anticipate some sort of resolution the further out they look. Futures contracts for deliveries of Brent crude in December still trade below $90 a barrel.
“While the geopolitical environment remains fluid on a day-to-day basis, markets appear to be assigning a higher probability to a relatively near-term U.S. exit from the Middle East, alongside a normalization in global supply chains that could ultimately pressure oil prices lower,” said Adam Turnquist, chief technical strategist at LPL Financial.
The timing of the Trump administration’s announcements of important changes in policy in the conflict with Iran have, to some extent, exacerbated the appearance of market moves — both on the way down and the way back up.
The war began after the market closed on the final day of February and the cease-fire was announced on the final day of March, so the stock market’s losses were concentrated in March and the recovery almost entirely captured in April.
There are reasons for trepidation among stock investors as the war enters its third month.
The conflict could drag on for longer than is currently expected. Oil prices with Brent futures contracts from September through November have all started to rise, moving above $90 in just over the past week. Although that means traders still expect the price of oil to drift downward in the coming months, crude is increasingly expected to stay elevated for longer, weighing on the economy. The government’s bond market also shows signs of lingering inflation risks stemming from the war, analysts have noted.
Many investors have also expressed a lack of conviction in the current rally, which is evident in the way investors are trading. Stock market trading volumes have been subdued through April, with some investors saying they have turned to the derivatives market to place bets on the market going higher, allowing them to profit if the rally continues but limit losses if the market falls again.
“As long as the economy continues to grow and companies are able to grow earnings, we can see higher stock prices even in the face of higher energy prices and inflation,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “However, the longer the war drags on, the more investors will grow nervous and we could see some pullbacks as fears ebb and flow.”
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