NYS Comptroller Defends Israel Bond Investments Amid Divestment Calls

New York State Comptroller Tom DiNapoli has stated his intention to continue investing state pension funds in Israel bonds, positioning himself against a growing divestment movement driven by pro-Palestinian activists. This stance diverges from a recent decision by New York City Comptroller Mark Levine, who announced he would not reinvest city pension funds in Israel bonds.

DiNapoli, a Democrat seeking re-election, oversees a state pension fund valued at approximately $309.7 billion. His office indicated that they continue to seek investment opportunities in Israel that benefit the fund. The New York State pension system currently holds over $360 million invested in Israel, with its investment in Israel bonds remaining unchanged.

Levine, also a Democrat, recently reversed a campaign pledge by stating his decision not to reinvest in Israel bonds was based solely on financial considerations. However, during a Democratic Party primary debate in June 2025, Levine had previously expressed support for including Israel and Israel bonds in the city's globally diversified portfolio, citing their historical performance.

Maya Mamdani, the Mayor, welcomed Levine’s decision, arguing that the city should not make an exception for Israel when it does not purchase bonds from other sovereign nations. A spokesperson for the city comptroller clarified that while Israel bonds are no longer being purchased, the city's pension system still maintains $285.42 million in other Israel-based public fixed-income investments.

Advocates such as Dov Hikind, founder of Americans Against Antisemitism, have praised DiNapoli's consistent position while criticizing Levine for reportedly yielding to pressure. Hikind expressed a desire for DiNapoli to increase his investments in Israel.

Previously, the former New York City Comptroller, Brad Lander, divested $40 million in Israel bonds that had been held by the city since the 1970s.