The advocacy organization Democracy for the Arab World Now (DAWN) has issued a formal warning to New York State officials regarding potential legal action to block further investments in Israeli bonds. The group contends that such financial instruments effectively subsidize Israel’s military operations and human rights violations against Palestinians.
Executive Director Sarah Leah Whitson declared in a Friday statement that public officials must cease all investments in Israel Bonds, asserting they violate international legal obligations and fiduciary responsibilities to taxpayers. “For too long, our public officials have prioritized politically expedient support for Israel, using taxpayer money to finance Israel’s brutal war machine,” Whitson emphasized.
Financial records reveal significant exposure to Israeli debt, with the New York State Common Retirement Fund maintaining over $352 million in investments as of March 2024. These bonds, marketed by an entity affiliated with Israel’s finance ministry, offer varying terms: retail bonds start at $36 while institutional ten-year dollar-denominated bonds require minimum $25,000 investments with approximately 5.2% yields.
The controversy has intensified following New York City Comptroller Mark Levine’s January announcement to resume purchases despite the city’s 2024 divestment. This position contrasts sharply with Mayor Zohran Mamdani’s public support for divestment over Israel’s conduct in Gaza.
DAWN has dispatched formal demands to Governor Kathy Hochul, Attorney General Letitia James, and Mayor Mamdani, urging publication of policies prohibiting Israeli security purchases until cessation of “unlawful occupation, apartheid rule and ongoing genocide.” The organization warns of supporting litigation if demands remain unmet.
Legal advisor Alex Smith articulated the gravity of the situation: “New York officials continuing to make such investments in the face of overwhelming evidence of the war crimes and crimes against humanity they support may face personal civil and criminal liability for aiding and abetting those crimes.”
The debate transcends partisan lines, with former hedge fund manager and Florida gubernatorial candidate James Fishback questioning the risk-reward ratio of Israel bonds during a Tucker Carlson podcast appearance. Concurrently, credit agency Moody’s has flagged Israeli bonds as “increasingly risky investments,” complicating comptroller Levine’s defense of their financial soundness despite personal ties to Israel.
Middle East Eye’s inquiries to relevant New York offices remained unanswered at publication time.