DayofPal—New York City’s pension funds are considering resuming investments in Israeli government bonds, a move that would direct public funds into Israel’s treasury despite the ongoing war in Gaza.
According to a report by the Financial Times, the city’s chief financial officer, Mark Levine, is pushing for reinvestment, placing him on a potential collision course with Mayor Zohran Mamdani, who has publicly supported divesting from Israel over its genocide in Gaza.
Levine said Israeli bonds have delivered strong financial returns and continue to hold investment-grade ratings, arguing that his fiduciary duty requires decisions to be based on financial performance rather than political considerations.
Israeli government bonds function as direct loans to the occupation state, providing investors with regular interest payments while channeling capital directly to the government.
Critics argue that such investments effectively support Israel’s policies, including settlement expansion, forced displacement of Palestinians, and the killing of civilians in Gaza and the occupied West Bank.
Any decision to reinvest is likely to intensify tensions within City Hall. One of Mamdani’s first actions after taking office in early January was to revoke an executive order issued by his predecessor that barred city agencies from boycotting or divesting from Israel.
New York had routinely invested pension funds in Israeli bonds for decades, a practice that ended in 2023 when the city allowed its holdings to mature without reinvesting.
At the time, former chief financial officer Brad Lander declined to purchase new bonds, citing a broader policy of avoiding foreign sovereign debt and treating Israel like any other state.
Despite warnings from credit rating agencies, including Moody’s, that Israeli bonds are becoming an increasingly risky investment, Levine has reopened the debate, reviving questions over whether public pension funds should be used to finance a state accused of serious violations of international law.
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