Billionaire environmental advocate and gubernatorial candidate Tom Steyer is once again under fire over how he built his fortune, with critics pointing to past investments tied to private prisons now used to detain undocumented immigrants.
The issue has resurfaced as the June 2 primary approaches, with opponents within his own party sharpening their attacks and questioning whether Steyer’s business history aligns with his progressive platform.
The controversy came to a head during a recent town hall in San Diego, where a protester interrupted the event to confront Steyer about his former financial ties. Holly Taylor, a local resident, accused him of profiting from detention facilities, referencing a private prison in Otay Mesa that was backed by Steyer’s hedge fund years ago.
Steyer co-founded Farallon Capital in 1986, building it into one of the largest hedge funds in the country. Financial disclosures show the firm held a significant stake—valued at more than $89 million—in Corrections Corporation of America in 2005. The company, now known as CoreCivic, operates detention facilities across the U.S., including sites used by federal immigration authorities.
The connection has long drawn criticism. Protesters raised the issue earlier this year at the California Democratic Party convention, and Steyer’s rivals have continued to bring it up on the campaign trail.
State Superintendent Tony Thurmond recently argued that Steyer’s wealth was partly built on industries that contradict his current political messaging. Rep. Eric Swalwell also criticized Steyer on social media, tying his campaign to the broader debate over immigration detention policies.
Steyer has not denied the investment and has repeatedly said he regrets it. He sold his stake in the prison company more than two decades ago and has described the experience as a turning point.
“It was a mistake,” Steyer said during a recent town hall in San Francisco, explaining that the investment ultimately led him to rethink both his career and values. He later stepped away from Farallon entirely, saying he no longer wanted to be involved in that type of business.
Since leaving the hedge fund, Steyer and his wife, Kat Taylor, have focused on political advocacy and philanthropy, including efforts tied to climate change and criminal justice reform.
Still, questions remain about his financial ties. Public disclosures show that Steyer and his wife continue to receive income connected to Farallon through various investments and holdings. His campaign has said safeguards are in place to prevent him from profiting from industries he opposes, adding that any such earnings would be donated to charity.
Steyer’s wealth has played a central role in his political ambitions. He poured nearly $342 million of his own money into his 2020 presidential bid and has already contributed more than $100 million to his 2026 gubernatorial campaign, according to state filings. His heavy spending has made him one of the most visible candidates in the race, with thousands of television ads airing across California in recent weeks.
Despite that financial advantage, history suggests money alone doesn’t guarantee success in California politics. Past self-funded candidates, including former eBay executive Meg Whitman, have spent heavily only to fall short at the ballot box.
Steyer remains one of the leading Democratic contenders in the crowded field to replace term-limited Gov. Gavin Newsom. But as the campaign intensifies, his opponents—and activists—continue to press him on the origins of his fortune.
For some critics, including those protesting regularly outside the Otay Mesa detention facility, the issue goes beyond politics. Taylor, who confronted Steyer at the town hall, said her concerns are rooted in what she sees as the human cost behind those investments.
“My main issue is that he has gotten financial gain off of these people suffering,” she said.
