NYC Comptroller Halts Pension Fund Investment in Israeli Bonds

New York City Comptroller Mark Levine decided Thursday not to use city pension funds to purchase Israeli bonds, citing an internal analysis that found them to be an unsound financial investment during the current regional conflict. Levine, who controls approximately $2 billion of the city's pension funds, stated that his fiduciary responsibility to 750,000 retirees outweighed political considerations.

While the city will stop purchasing new bonds, Levine noted that the pension funds still maintain over $285 million in Israeli holdings, primarily in equities. He maintained that Israel remains a dynamic economy and that these existing holdings remain an important part of the portfolio.

The decision drew sharp criticism from Jewish leaders and Israel's consul general in New York, who accused Levine of breaking a campaign pledge and warned the move would fuel antisemitism. Conversely, Mayor Zohran Mamdani and pro-Palestinian groups, including Jewish Voice for Peace, supported the decision. Mamdani argued that the city does not purchase the bonds of any other sovereign nation and should not make an exception for Israel.