Student protests against the Israel-Hamas conflict have led to calls for college endowment funds to divest from Israel and companies doing business there. The ongoing unrest has brought about demands for universities to review their investments in tech giants like Google and Amazon, as well as defense contractors such as Boeing and Lockheed. However, implementing these divestments is a complex process.
At the University of California, Berkeley, student activists agreed with the president to support a cease-fire in Gaza. Meanwhile, Rutgers University promised scholarships for ten Palestinian students displaced by the war. Brown University's board of trustees pledged to vote on divesting from Israel.
Universities are reluctant to divest due to potential lower returns on their endowment funds, which could impact future students negatively. For instance, The Wharton School at the University of Pennsylvania emphasizes that introducing greater risk or lower returns in the endowment would limit resources available for tuition assistance and university operations.
Historically close ties between US universities and defense industries have raised concerns for decades. In 1961, former President Dwight Eisenhower warned of the 'military-industrial complex' entering the academic sphere. California, known for its defense and aerospace sectors, has over $158bn a year from the defense industry alone as of fiscal year 2021.
Student activism in California has been prevalent, drawing inspiration from past protests against wars such as Vietnam and apartheid South Africa. Collaborations between universities and defense companies can come in various forms, often prevalent in STEM departments through research projects, recruitment, job fairs, and school donations.
Weapons companies like Raytheon, Northrop Grumman, Boeing, and Lockheed Martin are listed on the University of California's corporate affiliates program. Graduate students in California are increasingly unionizing to demand their schools distance themselves from weapons manufacturers and government defense operations.
Universities have faced calls to sever ties with companies that donate over $1m cumulatively, such as Raytheon. However, the process of divesting is not straightforward and requires careful consideration of potential consequences.
