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Trump’s class alliances: Which companies are profiting from ICE operations?

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Operations conducted by Immigration and Customs Enforcement (ICE) units across the United States offer significant clues regarding the “class alliances” underpinning Donald Trump.

Institutions including companies like Palantir and Deloitte have reaped more than $22 billion in total earnings from contracts with agencies situated at the center of the aggressive immigration measures Donald Trump implemented over the past year.

As reported by the Financial Times (FT), consultants, technology groups, charter airlines, and a wall construction company managed by a presidential ally were among the primary beneficiaries of the surge in spending by ICE and Customs and Border Protection (CBP).

This funding bonanza began following Trump’s inauguration for a second term last January and has accelerated since the enactment of the “big, beautiful bill” in July.

According to the FT’s analysis of government contracting data, the data intelligence group Palantir has secured $81 million in contracts from ICE since January 2025.

Consultancy firm Deloitte, meanwhile, obtained more than $100 million in new contracts from ICE and CBP during the same period.

Regional companies secure major contracts

The Fisher Sand & Gravel group, led by Republican donor Tommy Fisher—which signed a contract to construct sections of a wall on the southern US border—became the top earner from CBP contracts, generating over $6 billion in revenue since July.

The single largest beneficiary of ICE contracts was CSI Aviation, a company organizing charter flights for the agency. This firm has secured over $1.2 billion in business since Trump returned to office last January.

These windfalls coincide with a period in which ICE spending on contracts more than doubled in the two quarters following the passage of Trump’s historic legislation, rising from $1.5 billion in the previous six months to $3.7 billion.

CBP spending on private sector companies increased sevenfold between the first and second halves of 2025. The agency reported $2 billion in new contract work this month alone—a sum exceeding the total for the entire first half of 2025.

Much of the agencies’ contracting is for routine work, such as modernizing IT systems or providing outsourced data center staffing, often stemming from previous administrations.

Palantir building a “self-deportation tracking” system

However, other contracts relate to new tactics employed by the Trump administration to identify, detain, and deport undocumented immigrants, or to encourage them to “self-deport.”

Palantir, which has held contracts with the agency for over a decade, signed a $30 million deal in April to build an operating system to be used for “self-deportation tracking,” according to a federal contract announcement.

The company also signed a contract to provide tools intended to “facilitate operations for the selection and apprehension of illegal aliens.”

Palantir CEO Alex Karp had previously dismissed concerns regarding the group’s work for the US government.

Karp stated last year:

“I will use all my influence to ensure this country remains skeptical on immigration and possesses a deterrent capacity. Do we have to pretend that having borders is immoral?”

AI-based language models in the service of immigration enforcement

According to the 2025 DHS AI Use Case Inventory published by the US Department of Homeland Security (DHS), ICE has been using Palantir’s AI products to process large volumes of civilian reports since May of last year.

This tool, named the “AI-Enhanced ICE Report Processor,” utilizes large language models (LLMs) to summarize or categorize received reports and offers functionality to translate reports received in non-English languages into English.

The “Advanced Lead Identification and Enforcement Target Selection” tool, which ICE has utilized since June of last year, was also purchased from Palantir.

This tool, known by the acronym “ELITE,” uses artificial intelligence to identify leads—such as the addresses of enforcement targets, including for deportation—and allows agents to share this information.

It has also been revealed that ICE uses Palantir-based generative AI for internal developers’ code writing and system administration.

Anduril’s surveillance towers in the “Big, Beautiful Bill”

Trump’s legislation also mandates that all new border surveillance towers be certified as “autonomous.” According to a report published in The Intercept last July, only Anduril’s “towers” meet this requirement.

Signed into law by President Trump on July 4th, this bill provides significant spending increases for military and law enforcement projects, including over $6 billion for various border security technologies.

These initiatives include the expansion of the “virtual wall”—a growing network of sensor-equipped surveillance towers along the US-Mexico border. On this border, computers are increasingly assuming the task of detecting and apprehending migrants.

Anduril began its operations by selling software-backed surveillance towers to CBP. The company promotes its “Sentry Tower” series for its “autonomous” capabilities, which use machine learning software to constantly scan the horizon and detect potential objects of interest (such as people, vehicles, or animals attempting to cross the border) without the need for human manpower to monitor sensor data.

Thanks to bipartisan support for the vision of locking down the border with computerized eyes, Anduril has become a dominant player in border surveillance, surpassing incumbents like Elbit and General Dynamics.

Indirect support from Big Tech

Deloitte, one of the largest public sector contractors in the US, accepted recent contract updates providing further funding for “law enforcement systems and analytics for enforcement and removal operations.”

Its contracts also contain updated provisions for “internet research and data analysis support services” for ICE’s target identification operations division.

Many major technology companies do not contract directly with the federal government, but their products and services are offered through vendors, making it difficult to determine the financial benefits they derive from the funding surge.

Amazon and Microsoft, the world’s two largest cloud groups, provide services worth at least $75 million and $93 million, respectively, to US agencies.

These services are primarily provided through third-party vendors such as Dell Federal Systems.

In September, ICE awarded a $24 million contract to a third party to provide “hosting support” for services offered by Amazon’s cloud division.

Additionally, it paid Dell $19 million for Microsoft enterprise licenses.

Smaller tech groups, such as Motorola Solutions, have also signed contracts with ICE.

The Illinois-based group holds $19 million in contracts in its own name, while a third-party vendor won a $260 million contract to provide Motorola radios and batteries to personnel involved in enforcement actions.

Furthermore, AI technologies from various major tech companies are being utilized. ICE used a GPT-4 based AI tool from OpenAI to review resumes for recruitment.

AI technologies from Meta, Google, OpenAI, and Anthropic are also in use.

Land and warehouses for new prisons

Despite protests in small towns and cities across the US, the Trump administration continues to purchase warehouses it plans to convert into immigrant prisons as part of a project that could represent the largest expansion of detention capacity in US history.

According to Bloomberg, the cost of purchasing just two warehouses was $172 million. A third warehouse in El Paso, Texas, could become one of the largest prisons in the country with a capacity of 8,500 beds once completed as planned.

These deals mark the latest development in ICE’s plan to utilize 23 warehouses to detain thousands of immigrants arrested by federal agents in Minneapolis and other cities.

On January 16, according to a local court filing, the administration paid $102 million for a plot of land near Hagerstown, Maryland. A week later, the government paid $70 million in cash for a warehouse in Surprise, Arizona.

The prices, which are roughly in line with the industry average for the warehouse market, cover the purchase of these currently vacant spaces.

ICE must pay companies to equip the buildings with toilets, showers, beds, dining, and recreation areas, and subsequently to operate them as detention centers.

The warehouses, most of which were originally designed and marketed as e-commerce distribution facilities, are crucial to the administration’s $45 billion construction of immigrant detention facilities.

In recent weeks, the federal government has toured potential sites in more than 20 cities with companies and shared designs with them, including preferred layouts for at least 15 locations.

According to sources speaking to Bloomberg, companies that will convert these warehouses into prisons have been asked to submit bids for the initial locations, starting with Hagerstown.

The pattern is evident here as well: For instance, in Salt Lake City, the warehouse designated by ICE as a future “mega-center” prison is owned by the Ritchie Group, a local family business.

Following pressure from protesters arriving at their offices, the company announced it had “no plans to sell or lease the property in question to the federal government.”

Meanwhile, KPB Services, the company that won the tender for the design to convert warehouses in Kansas into detention centers, appears to be a shell company.

ICE has increased detention capacity by leveraging long-standing relationships with private prison companies such as CoreCivic and Geo Group. These companies have provided ICE access to additional beds in their existing prisons, purchased and leased new facilities, and reopened shuttered ones.

In earnings calls held in November, these companies stated they could make a total of more than 30,000 beds available should the federal government request them.

British firms among the beneficiaries

Subsidiaries of several prominent UK-based companies have also secured active contracts with these agencies. British private security firm G4S has signed contracts worth $68 million with ICE since January 2025.

These contracts primarily cover providing “ground transportation services” for detainees during enforcement and removal operations.

Smiths Detection, a unit of the London Stock Exchange-listed Smiths Group that manufactures screening and detection technology for border control, has earned over $62 million from CBP contracts during Trump’s second term.

Smiths stated that it provides “threat detection and security screening technologies for ports and borders that curb illegal activity.”

Regional family businesses, Republican donors, Silicon Valley alliance

John Ganz, who closely examined the companies benefiting from ICE and CBP contracts on the Unpopular Front blog, offers significant clues regarding the alliances behind the Trump administration.

According to Ganz, while there are a few publicly traded and venture capital-funded firms, the largest beneficiaries exhibit a striking pattern: They are all regional family businesses displaying dynastic characteristics and are significant donors to the Republican Party.

Moreover, these regional companies have been involved in legally dubious practices. For example, Fisher Sand & Gravel, which sits at the top of the list, is owned by the Fisher family living in Dickinson, North Dakota.

The Fisher family makes generous donations to Republicans, and President Tommy Fisher frequently appears as a guest on conservative TV and radio programs.

The Fisher company’s history includes accusations of environmental violations, questionable labor practices, and, most notably, fraud.

In 2009, Fisher’s then-owner Michael Fisher pleaded guilty to nine counts of tax fraud and was sentenced to 37 months in prison and ordered to pay over $300,000 in restitution.

The company’s former CFO Amiel Schaff and former auditor Clyde Frank were also each found guilty of one count of conspiracy to defraud the US in 2009.

Under a 2009 agreement with the Department of Justice, the company was required to pay a total of $1.16 million in restitution, penalties, and fines, implement measures to prevent future fraud within the company, and cooperate with the IRS in the audit of tax returns.

Another former president of the company, David William Fisher, was found guilty in 2005 of possessing child pornography involving a 10-year-old child and was sentenced to 10 years in prison.

In exchange for his guilty plea, charges of sexual abuse of a minor were dropped, and he was released on April 30, 2010.

According to Ganz, companies further down the list, such as SLSCO, CSI Aviation, and Barnard Construction, fit this same model: regional, closely-held companies that are, so to speak, “politically integrated.”

Scholar Melinda Cooper, cited by Ganz, points to the tension between private, unincorporated, family-based companies and corporate, publicly traded, shareholder-owned companies.

According to Cooper, “family-based” capitalism, which finds representation in the White House with Trump, extends from the smallest family businesses to the vastest dynasties and is essentially shaped by the alliance between the two.

Trump also belongs to this “social class”: a representative of companies whose business methods are “informal”—or, to put it more bluntly, often outright criminal.

Ganz concludes his piece as follows:

“When you add in the presence of [Peter] Thiel-backed firms like Anduril, you start to understand the material basis of the Trump coalition. It is an alliance of family-based regional crony capital and a reactionary section of the tech sector focused on defense and security. Add to that ICE’s function as a jobs program for the Trumpenproletariat gang and all the illiterate influencers, and voila, you get the class composition of real American fascism, which is characteristically a protection racket. It is a gang all the way down.”

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US national debt hits record $40 trillion as borrowing accelerates

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The US national debt has reached a record $40 trillion as borrowing expanded at a historic pace.

The development has heightened investor concern over the state of US public finances, despite Donald Trump’s pledge to bring spending under control.

Gross federal debt crossed the threshold on Tuesday, according to Treasury Department data published on Wednesday.

Calculations by the Financial Times show that debt climbed by $3 trillion over the past year, registering the fastest rate of increase in history outside the pandemic period.

Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget think tank, said:

“This is like a giant, flashing ‘check engine’ light. It doesn’t mean your engine will melt down tomorrow, but it is a clear sign that things have gotten quite out of hand. And it’s not just the size of the number; it’s the speed at which we’ve reached it.”

The US national debt has surged over the past two decades, climbing from below $6 trillion at the start of the century (about $12 trillion in 2026 dollar terms) as massive public spending during the financial crisis and the Covid-19 pandemic compounded enormous budget deficits.

In the past 10 years alone, the total debt load has doubled. Debt held by the public—a key gauge tracked by markets that excludes intra-governmental holdings—now exceeds $32 trillion, roughly equal to the size of the US economy.

The non-partisan Congressional Budget Office expects debt held by the public to surpass the post-Second World War record of 106% of GDP by the end of the decade and to reach 120% by 2036.

As borrowing increased, investors began demanding a higher premium to hold US bonds.

This has driven interest rates higher, leaving debt servicing costs larger than national defence spending.

The situation has created unease in Washington. On Wednesday, prior to the release of the debt data, the Treasury Department announced it would double its buybacks of long-term government debt in a bid to halt a recent sell-off.

Last week, the US paid its highest borrowing costs since 2001 to sell 30-year bonds.

Wednesday’s 10-year Treasury auction produced the highest yields since 2007 as investors fretted over the scale of the debt.

Ed Yardeni, president of Yardeni Research, said: “That is an awful lot of money being borrowed. It is going to feed on itself with interest expenses. If interest rates rise because of concerns about the high debt load, that will lead to even more interest expense. It’s a vicious cycle.”

Trump returned to office in 2025 promising to rein in “wasteful” government spending.

Treasury Secretary Scott Bessent pledged to reduce the budget deficit to 3% of GDP by the end of Trump’s term.

However, measures to trim spending in some areas were offset by broad tax cuts in the president’s signature 2025 fiscal legislation, the “One Big Beautiful Bill”, which will add more than $4 trillion to the debt by 2034.

Trump also requested an increase of more than 50% in annual defence spending, seeking $1.5 trillion in the largest budget request in US history.

The deficit fell to 5.9% of GDP in 2025 from 6.3% the previous year. The CBO expects the deficit to decline to 5.8% this year. The US national debt comprises years of accumulated deficits compounded by interest charges.

Analysts noted that both US political parties missed opportunities during periods of economic expansion to take significant steps toward curbing spending.

Calculations by the Congressional Joint Economic Committee indicate that over the past year, total national debt grew by roughly $7.9 billion a day, or approximately $91,000 per second.

Budget specialists said they hoped crossing the $40 trillion threshold would spur politicians from both parties to take meaningful steps to bring borrowing back under control.

Michael Peterson, head of the Peterson Foundation, a think tank dedicated to returning debt to a sustainable trajectory, said:

“My hope is that this serves as a national alarm and wake-up call to address our fiscal future. If we keep borrowing this much, we are going to face a day of reckoning in financial markets… People will wake up one day and decide: ‘You know what? I’m more worried about the United States now. I’m going to demand higher interest rates, or I’m going to put my money somewhere else.'”

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Independent US oil firms set to sign output deals in Venezuela

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Several independent US oil producers are expected to sign production contracts with Venezuela’s state-owned oil company in the coming days.

According to sources who spoke to Politico on condition of anonymity because details of the event have not yet been made public, a signing ceremony involving several small US producers and Petróleos de Venezuela (PDVSA) was scheduled to take place in Houston on Tuesday (18 August) evening.

One source said Venezuela’s oil minister and the head of PDVSA’s exploration division were scheduled to attend the ceremony. Another source added that the event could be postponed until Wednesday morning.

The White House, which did not immediately respond to a request for comment, was not expected to be officially involved in Tuesday’s ceremony.

However, the development follows a visit by senior officials to Caracas in late April, where they signed memorandums of understanding that established the framework for formal production agreements in the country, which holds some of the world’s largest oil reserves.

Despite the tailwind provided by high crude prices, negotiations had stalled over key details such as dispute resolution, while officials in Caracas contended with two devastating earthquakes in June that claimed thousands of lives.

Venezuela’s interim president, Delcy Rodríguez, announced new regulations last month that offer more favourable fiscal terms to international oil companies.

According to an industry source close to the negotiations, the signing of the contracts comes after the Trump administration renewed pressure on Rodríguez to ensure PDVSA concludes agreements with American firms.

The source said these efforts included outreach by Secretary of State Marco Rubio to discuss how increased oil revenues could assist the country following the devastating earthquake earlier this summer.

The source added:

“Delcy reached a renewed awareness that increased oil production is the way to rebuild after the earthquakes and to achieve what her government wants to do for the people suffering from the earthquakes.”

David Goldwyn, president of the international energy consultancy Goldwyn Global Strategies, said investments from independent oil producers and boosting output from existing fields would serve as the “primary source of new oil growth for the next few years” for Venezuela.

“While the oil majors are trying to buy time to see how the political situation clarifies and whether they can cherry-pick the best assets, independent companies can de-risk their projects in the short term,” Goldwyn said.

However, Goldwyn noted that these investments would add no more than 300,000 barrels per day to the country’s oil production over the next year, falling far short of the multi-million-barrel increase that officials in Caracas and Washington wish to see.

“Until the framework improves, electricity is restored, and the political picture becomes clear, all we will see is incremental production growth,” the strategist said.

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US-Brazil rift widens over proposed sanctions and trade tariffs

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Diplomatic tensions between the two countries remain at a peak as the US government considers new sanctions targeting a judge on Brazil’s Supreme Court.

According to sources familiar with the matter who spoke to the Financial Times (FT), the Trump administration is evaluating new measures against Justice Alexandre de Moraes, whom it sanctioned last year on human rights grounds before subsequently rescinding that decision.

Washington’s renewed focus on the magistrate threatens to widen the rift between Brazil and the US across trade and political spheres, casting a shadow over upcoming elections in Latin America’s largest nation.

A little over a year ago, De Moraes was subjected to sanctions under the Global Magnitsky Act. US Treasury Secretary Scott Bessent accused him at the time of engaging in a “repressive censorship campaign, arbitrary detentions that violate human rights, and politicized prosecutions,” including measures directed at former Brazilian President Jair Bolsonaro.

Bolsonaro, an ally of Donald Trump, was sentenced last year to 27 years in prison for plotting a coup.

However, sanctions targeting the judge, his wife, and a company owned by his family were lifted in December following a meeting and phone conversations between Trump and his Brazilian counterpart, Luiz Inacio Lula da Silva.

According to a source familiar with the matter who requested anonymity, US interest in De Moraes was revived partly due to a case that ignited a debate over press freedom in Brazil.

The judge authorized police raids against a journalist and two sources as part of an investigation into media coverage concerning a Supreme Court justice and his family.

De Moraes defended the action, arguing that the information in question had been illegally obtained and disclosed, thereby endangering the safety of the justice’s family.

The judge gained global prominence several years ago following a public conflict with Elon Musk, which briefly led to the billionaire’s X platform being blocked in Brazil.

Supporters say he “helped protect Brazilian democracy against a wave of misinformation.”

However, critics, including the Trump administration, view him as violating free speech rights.

“He went after the president’s supporters. Not just Elon Musk, but MAGA supporters in Brazil as well. Even if we want to build good relations with Brazil, it is clear that this man is an adversary,” said a person familiar with the US government’s thinking.

Another person stated that the reimposition of Magnitsky sanctions is “under evaluation,” noting that such sanctions entail the freezing of US-based assets and a prohibition on American companies and individuals conducting business with targeted parties.

While it remains unclear whether or when a decision will be reached, any such move would intensify an escalating retaliatory spiral between the two most populous countries in the Americas.

Tensions initially erupted more than a year ago when Trump imposed a 50% tariff on Brazil while demanding that prosecution proceedings against Bolsonaro be dropped.

That tariff was subsequently invalidated by the US Supreme Court.

A brief period of de-escalation since then has drawn to a close, with the US applying a 25% import tariff on numerous Brazilian products in July.

Last month, Brazil denied entry to two Trump envoys over concerns regarding potential interference in its upcoming October elections. Washington rejects those allegations.

Lula, who is seeking re-election for a fourth presidential term, suggested that the US might act to support his main opponent, Senator Flavio Bolsonaro, the jailed former leader’s son.

The 80-year-old president has also engaged in a sharp public exchange of words with US Secretary of State Marco Rubio.

On Sunday, thousands of supporters gathered to welcome Lula at a stadium in Sao Bernardo do Campo, an industrial suburb of Sao Paulo, for the official launch of his election campaign.

Lula originally achieved prominence in the area during the late 1970s as a union leader heading metalworkers’ strikes.

Speaking at the venue, Lula said, “I thank the working men and women of this country who believed that someone like themselves could achieve more than someone different from them. As long as I am alive, I will not stop fighting, and I will not allow the right [to prevail].”

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