AFT President Criticizes Valor Equity After CEO Resignation from DOGE

CEO's Resignation Sparks AFT Critique on Pension Fund Management

WASHINGTON — The recent resignation of Antonio Gracias, CEO of Valor Equity Partners, from his role at the Department of Government Efficiency (DOGE) has prompted a response from Randi Weingarten, President of the American Federation of Teachers (AFT).

Valor Equity Partners confirmed that Gracias is no longer involved in freelance government work. This announcement followed Weingarten's letter to nine public pension funds urging a review of their investments with Valor. The funds, which manage AFT members' retirement savings, received the letter on the heels of this development.

“It’s amazing what shining a spotlight can reveal,” Weingarten remarked. “While we are encouraged that Gracias has abandoned DOGE and seems to now be taking his core business seriously, it’s disappointing it apparently took letters from his investors to finally flush out the truth.”

AFT members have a significant portion of their deferred wages, estimated at $4 trillion, invested in public pension funds, with $1.8 billion allocated to Valor. The funds include major entities like the California Public Employees’ Retirement System and the New York State Teachers’ Retirement System.

The letter criticized Gracias and other Valor employees for allegedly neglecting their corporate duties by dedicating 80 hours weekly to DOGE. Controversy arose in March when Gracias appeared with Elon Musk and inaccurately claimed that millions of deceased individuals were receiving Social Security benefits.

Weingarten's letter called into question the impact of Valor employees' government work on pension fund agreements, suggesting it could trigger "key person" clauses that allow for cash payouts. Additionally, concerns were raised about the frequent use of private jets by Valor staff for Washington, D.C. travel since March 2025, purportedly for DOGE activities.

The letter also addressed potential threats to Social Security and Medicare, emphasizing that any instability might directly harm pension beneficiaries, sparking fears and demands for increased benefits.

Weingarten proposed a set of 12 questions for fiduciaries to evaluate their continued association with Valor, coinciding with a recent AFL-CIO report. This report, released last month, critiqued Valor's performance, highlighting below-median results in distributions according to Preqin Ltd.

For over a decade, the AFT has equipped pension trustees with tools to assess investment risks, including evaluations of companies with reputational challenges. The AFT Trustee Council, comprising 40 members across 20 public pension funds, plays a crucial role in these efforts.