WASHINGTON, Oct. 2 (UPI) -- A groundswell of opposition to Iran is pushing U.S. states to divest their pension funds from companies that do business in Iran, and behind-the-scenes political efforts by the administration are paying off with increased European support of government sanctions.

Last week California became the most recent state to pass measures that would divest its retirement funds from any companies that do business with Iran. Gov. Arnold Schwarzenegger said he will sign the legislation, which involves shifting billions of dollars away from those companies.

The Center for Security Policy, a think tank that pushes divestment from countries that are said to sponsor terrorism, released a report in 2004 outlining how much individual states invest in these companies. The report found that California’s CalSTRS, the state teachers' retirement fund, invested in 195 companies that did business in Iran. The public employees' retirement fund, CalPERS, was found to have invested in 144 companies doing business in Iran.

Earlier this year Florida divested its pension funds from similar companies, and many other states, including Michigan, Massachusetts and Texas, are looking into similar initiatives.

But these measures are not a new concept.