Trump calls for National Guard deployment in San Francisco loom over city's AI-driven resurgence

In a striking move, President Donald Trump has intensified his calls for deploying the National Guard to San Francisco, coinciding with the city’s notable post-pandemic revival, largely fueled by advancements in artificial intelligence. Recent statistics reveal a significant drop in crime rates—down 30% since 2024—with homicides reaching their lowest point in 70 years and car break-ins at a 22-year low. As the city enjoys a resurgence in event bookings and tourism, the residential real estate market is tightening, and the demand for office space is rising. This surge in business activity is closely linked to the booming AI sector, with new data from CBRE indicating that venture capital funding in 2025 is projected to exceed the previous record of $276 billion set in 2021. Notably, San Francisco and Silicon Valley have been the primary beneficiaries of this investment, securing 80% of AI-related venture funding, which amounts to a staggering $115 billion by the third quarter. Mayor Daniel Lurie expressed optimism about the city's trajectory, stating, "San Franciscans are feeling positive about the direction of our city once again." His remarks came in a statement released by Governor Gavin Newsom’s office, emphasizing ongoing efforts to maintain safety and build on the city’s progress. This message was particularly poignant ahead of Salesforce's annual Dreamforce conference. The situation escalated when Salesforce CEO Marc Benioff expressed support for Trump’s proposal to send federal troops to San Francisco, a stance that received backing from influential tech figures like Elon Musk and David Sacks. However, after facing backlash, Benioff retracted his statement, declaring on X, "Having listened closely to my fellow San Franciscans and our local officials, I do not believe the National Guard is needed to address safety in San Francisco." Trump recently reiterated his intention to deploy the National Guard, remarking on Fox News that, "the difference is I think they want us in San Francisco." The White House has not yet commented on these developments. Meanwhile, Mayor Lurie highlighted the successful safety of recent events, including Dreamforce, without directly addressing Trump's calls for military intervention. The economic indicators present a favorable outlook for San Francisco, with tourism spending projected to rise to $9.35 billion this year. High-profile events, such as the NBA All-Star weekend and various music festivals, are contributing to this growth. The commercial real estate sector is also showing signs of recovery as companies gradually move away from remote work policies. Tech firms accounted for 53% of leasing activity in 2025, the highest level since 2019. Despite these positive trends, challenges persist. The city has witnessed the exit of prominent retailers like Nordstrom from its downtown shopping area, and office vacancy rates remain elevated at 33.6%. Issues such as homelessness and open drug use continue to plague certain neighborhoods. However, Ted Egan, San Francisco's chief economist, noted significant improvements in the city’s overall health, stating, "It seems cleaner and safer now than it’s ever been in any of the time that I’ve been here." Egan remains optimistic about the long-term economic prospects of San Francisco, asserting that it continues to be a desirable location for new professionals seeking career opportunities.