Israeli consul general calls decision misguided; Mamdani endorses
New York City Comptroller Mark Levine on Thursday defended his decision not to direct city pension funds toward Israeli government bonds, saying politics did not influence his decision. He reached his conclusion, he said, after an internal analysis by his office found the bonds were not a sound financial investment, especially during a time of conflict in the region.
“I expressed my deep appreciation for the Israel-NYC economic relationship during my campaign for comptroller, and that appreciation remains unchanged,” Levine said. “I also pledged to make every investment decision free of politics, based solely on its financial merits and my fiduciary responsibility to 750,000 current and future retirees.”
Some Jewish leaders accused Levine of breaking a pledge he made during last year’s comptroller race to restart buying Israeli bonds after his predecessor, Brad Lander, let holdings mature without reinvestment. They said the reversal could add further fuel to a rise in antisemitism.
Levine’s comments in a New York Times interview earlier in the week drew victory cheers from supporters of the pro-Palestinian Boycott, Divestment and Sanctions campaign, which has pressed over the past year to end city investment in the bonds. The anti-Zionist group Jewish Voice for Peace called the shift “a political earthquake” in a written statement.
“In the most Jewish city in the country, New Yorkers have made it clear that it’s no longer politically or financially viable to pledge unconditional support for the Israeli military and government,” the group said.
Mayor Zohran Mamdani, a Democratic socialist who has accused Israel’s government of genocide and called for the arrest of Prime Minister Benjamin Netanyahu, endorsed Levine’s decision at an unrelated press conference Wednesday.
“We don’t purchase the bonds of any other sovereign nation,” Mamdani said. “I don’t think that we should make an exception when it comes to Israel.”
Israel’s war in Gaza played a high-profile role in last year’s elections in New York City, including the mayoral race. Mamdani has stuck to the rhetoric despite drawing rebuke from Jewish leaders who say his words have made members of their community less safe.
Reactions from Israeli officials were pointed. Ofir Akunis, Israel’s consul general in New York, called Levine’s decision “misguided” and said it would hurt the city’s economy. “The fact that Mayor Mamdani welcomed this decision speaks volumes,” Akunis said. “This decision will only further fuel antisemitism in New York City.”
The comptroller directly oversees about $2 billion of the city’s pension funds. External asset managers oversee the remaining $327 billion, with investment decisions on the larger pot of money requiring a vote by the pension boards. On Thursday, Levine noted that the funds still hold more than $285 million in Israel, primarily through equities.
“Israel remains one of the world’s most dynamic and innovative economies, and those holdings remain an important part of our portfolio,” he said.
In 2023, Levine’s predecessor, Brad Lander, chose not to reinvest city funds in Israeli bonds once existing holdings matured. When Levine took office, he said he remained committed to resuming purchases, citing the bonds’ long presence in the city’s portfolio. His reversal this week drew victory cheers from BDS advocates who had pressed over the past year to end city investment in the bonds.