Trump Calls for National Guard in San Francisco Amidst AI-Fueled Economic Rebound
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San Francisco is experiencing a surprising resurgence, driven by the artificial intelligence boom, even as former President Donald Trump continues to call for the deployment of the National Guard. Despite significant gains in public safety and economic indicators, Trump reiterated his plans to send troops to the city on October 17, 2025, telling Fox News’ Maria Bartiromo, “the difference is I think they want us in San Francisco.”
A City on the Rise
Contrary to the narrative of urban decay often portrayed, San Francisco is demonstrating a robust recovery. Crime rates have fallen dramatically, dropping 30% compared to 2024 levels. Homicide rates are at their lowest in 70 years, and car break-ins have seen a 22-year low. This positive trend coincides with a surge in tourism, event bookings, and a tightening residential real estate market. The office market is also showing signs of life, fueled by the city’s position as a global hub for artificial intelligence.
The AI Boom and Venture Capital Influx
The engine driving San Francisco’s revitalization is the explosive growth of the AI sector. New data from CBRE indicates that venture capital funding in 2025 is projected to exceed the record $276 billion seen in 2021. A substantial 80% of this investment – approximately $115 billion through the third quarter – is concentrated in San Francisco and Silicon Valley. By the end of September, the San Francisco Bay Area’s investment levels were already 35% above its previous annual peak, according to CBRE’s analysis.
Local Leaders Respond
San Francisco’s Democratic Mayor, Daniel Lurie, expressed optimism about the city’s direction. “San Franciscans are feeling positive about the direction of our city once again,” Lurie stated in a release from Governor Gavin Newsom’s office. “And we are going to continue working every single day to build on this progress and keep our city safe 365 days a year.” This statement followed the successful security measures implemented during Salesforce’s annual Dreamforce conference.
A Shifting Stance from Tech Leaders
The debate over federal intervention gained prominence after Salesforce CEO Marc Benioff initially voiced support for Trump’s call for troops, a position publicly echoed by Elon Musk and David Sacks, both with close ties to the Trump Administration. However, facing mounting criticism, Benioff reversed course on Friday, posting on X, “Having listened closely to my fellow San Franciscans and our local officials, and after the largest and safest Dreamforce in our history, I do not believe the National Guard is needed to address safety in San Francisco.”
Previous Deployments and Local Opposition
The Trump administration’s previous deployments of the National Guard to Chicago and Portland, Oregon, were met with protests and legal challenges. Lurie has consistently maintained that additional troops are unnecessary, emphasizing existing partnerships between San Francisco law enforcement and federal agencies to address drug-related crimes. “I am deeply grateful to the members of our military for their service to our country, but the National Guard does not have the authority to arrest drug dealers — and sending them to San Francisco will do nothing to get fentanyl off the streets or make our city safer,” Lurie explained in a statement released Monday. He also highlighted the successful security surrounding recent events like Dreamforce and the No Kings Protests.
Economic Indicators Point to Growth
Beyond the AI sector, San Francisco’s economy is showing broad-based improvement. Tourism spending is projected to reach $9.35 billion in 2025, a modest increase from $9.26 billion. Major events, including the NBA All-Star weekend and the Outside Lands music festival, are contributing to this growth. The commercial real estate market is also recovering, with tech companies accounting for 53% of leasing activity – the highest percentage since 2019, according to CBRE. Apartment rental prices are surging, increasing 6% in August, significantly outpacing the 3.75% rise in Chicago.
Ted Egan, San Francisco’s chief economist, believes housing prices are nearing their peak, stating, “housing is probably as cheap as it’s going to get for a while.” .
Remaining Challenges
Despite the positive trends, San Francisco still faces significant challenges. The city has experienced the loss of key tenants in its downtown shopping district, including the closure of the Nordstrom flagship store at San Francisco City Centre, which is now largely vacant. Office vacancies remain high at 33.6% as of the third quarter, according to Cushman and Wakefield. Longstanding issues of homelessness and public drug use continue to concentrate in specific areas of the city.
However, Egan notes a palpable shift in the city’s atmosphere. “It seems cleaner and safer now than it’s ever been in any of the time that I’ve been here,” he said, adding that San Francisco remains an attractive destination for those starting their careers due to its abundant economic opportunities and long-term strengths.
San Francisco’s story is one of resilience and reinvention, a narrative that challenges the prevailing perception of a city in decline.
