Zohran Mamdani, the Democratic nominee for New York City mayor, said he would support divesting municipal pension funds from Israel if elected, telling CBS2 New York that investments that violate international law should be reexamined.
"I think we should not have a fund that is invested in violation of international law," Mamdani said during a Sunday interview on CBS2 New York’s "The Point with Marcia Kramer." He added that the approach taken by outgoing Comptroller Brad Lander in handling Israel bonds "is the right approach." Mamdani indicated he views the city’s purchase of State of Israel Bonds as at odds with the city’s stated values.
Mamdani’s comments echo actions taken by Lander, who when he took office in 2022 opted not to reinvest approximately $40 million in city pension funds that had been held in State of Israel Bonds. Lander has said the city still holds more than $300 million invested in Israeli companies, a distinction Lander and Mamdani have used to differentiate between direct purchases of Israel Bonds and broader equity or corporate holdings.
Under city rules, the mayor appoints trustees to the municipal pension boards alongside the comptroller and union representatives, meaning an elected mayor could press the pension boards on investment policy and potentially clash with the comptroller over votes. Manhattan Borough President Mark Levine, the Democratic nominee to succeed Lander as comptroller, has taken the opposite position: his campaign said he supports investing in Israel bonds and would prioritize investments with proven stability and returns for pensioners.
"Mark has been clear on his position on Israel bonds throughout the campaign. As comptroller, he will work closely with the other pension fund trustees to prioritize investments which has proven stability and strong returns for pensioners," said Levine campaign spokesperson Annabel Lassally.
Mamdani has previously signaled support for the boycott, divestment and sanctions movement against Israel and at a 2021 pro-Palestinian rally was recorded chanting "BDS." In the interview, he stopped short of endorsing a blanket divestment from all Israeli companies, saying the focus should be on where the city is "directly implicated." He added that whether to take broader steps would be a matter of determining where investments violate international law.
The head of Israel Bonds issued a public response to Mamdani’s remarks, saying the organization has seen strong support since the Oct. 7, 2023, attacks and noting substantial investments from U.S. local governments and the State of New York. "Israel Bonds is proud of the unprecedented outpouring of support — more than $5.5 billion in investments since October 7 — including major commitments from local governments around the country including the State of New York," said Dani Naveh, CEO of Israel Bonds.
Former City Comptroller Scott Stringer criticized the prospect of a mayor-led divestment. "Any attempt by the next mayor to divest from Israel Bonds would be a colossal mistake," Stringer said, calling the bonds a reliable investment dating back to the 1970s.
Mamdani’s statement arrives as New York City prepares for a new administration and a contested transition at the comptroller’s office. If elected, the mayor could influence pension board appointments and shape the city’s approach to investments tied to foreign governments and firms, but any change to pension policy would require action by the trustees and be subject to fiduciary duties to union members and retirees.
The debate highlights tensions between political values and fiduciary responsibility in managing public pensions, with candidates and stakeholders framing the issue around legal implications, investment returns and the ethical responsibilities of municipal trustees. Mayoral and comptroller campaigns have increasingly faced scrutiny over how municipal investments align with city policy priorities and international developments.
As the contest continues, candidates, pension trustees and financial managers will likely face pressure to explain how investment decisions balance legal, ethical and financial considerations for hundreds of thousands of city workers and retirees.
