New York City’s top financial official has backed away from a high-profile campaign pledge to purchase Israeli government bonds, reversing course over mounting concerns about economic instability and credit risk in the region.
Mark Levine, a Democratic incumbent who made the purchase of Israeli bonds a central plank of his successful 2025 election campaign, confirmed his decision to The New York Times in recent comments, emphasizing that his choice is rooted purely in fiscal prudence rather than political opposition to Israeli policy.
“I always said this would be based on financial considerations only, not politics — that’s still my position,” Levine stated. “But as of now, we feel that because of some technical challenges, and because of financial considerations, this is not an investment that we can make right now.”
The debate over whether New York City should invest pension fund assets in Israeli bonds first erupted into public view in 2023, when then-Comptroller Brad Lander chose not to reinvest in new Israeli bonds after the city’s existing holdings matured. At that time, the city’s pension fund held roughly $39 million in Israeli bonds, which delivered consistent annual returns of approximately five percent. Lander’s decision stopped short of full divestment, however, as the city did not liquidate its existing positions.
When Levine launched his campaign for comptroller last year, he positioned himself as an avowed supporter of Israel and made the purchase of new Israeli bonds a key campaign promise, setting up an immediate ideological and policy clash with New York Mayor Zohran Mamdani, who has publicly called for full divestment from Israel over its military conduct in the Gaza Strip. Notably, the mayor lacks the legal authority to override the comptroller’s independent decisions on pension fund bond purchases, meaning Levine’s final call stands regardless of city hall’s position.
Levine, who speaks Hebrew and has longstanding personal ties to Israel, has not shied away from commenting on Israeli domestic politics. In his recent comments, he shared that he feels a deep personal connection to the country but also expressed heartbreak over its current political climate, echoing widespread international criticism of Prime Minister Benjamin Netanyahu’s current government.
Levine’s decision comes against a backdrop of shifting credit ratings for Israeli sovereign debt. In 2024, credit rating agency Moody’s downgraded Israeli bonds, labeling the asset an “increasingly risky investment.” While Moody’s has since revised its overall outlook for Israel upward, the technical credit rating of Israeli bonds still remains below the level it held before the October 7, 2023 attacks.