Human Rights Organisation Issues Stern Warning to New York Officials Over Israeli Bond Holdings
The human rights group Dawn has issued a formal warning to New York state and local officials, asserting that investment of public funds in bonds issued by Israel contravenes both international legal standards and fiduciary responsibilities. The organisation cautioned that such investments could expose officials and beneficiaries to what it described as "substantial legal, ethical and financial risks."
Formal Communication Targets Key Decision-Makers
This significant warning was dispatched on Friday alongside a comprehensive twenty-six page memorandum addressed to several prominent New York figures. Recipients included Governor Kathy Hochul, Attorney General Letitia James, New York City Mayor Zohran Mamdani, alongside State Comptroller Tom DiNapoli and City Comptroller Mark Levine. The communication explicitly calls for an immediate cessation of new purchases and the divestment of any existing holdings in Israeli bonds.
Sarah Leah Whitson, executive director of Dawn, stated in an accompanying declaration that these investments violate "legal obligations not to aid and abet Israeli crimes and their fiduciary duties to taxpayers." The letter notably carries the threat of potential litigation should the recommendations be ignored.
Growing Divestment Calls Amidst Political Divides
This development emerges against a backdrop of increasing calls for divestment from Israel across the United States following the conflict in Gaza. It also coincides with a noticeable shift among some elected officials away from what was once considered reflexive support for Israel. The issue has created clear political fault lines within New York's governance structures.
In 2023, then New York City Comptroller Brad Lander terminated the city's approximately forty million dollar investment in Israeli bonds, citing identified legal and financial perils. His successor, Mark Levine, has signalled intentions to reinvest in these instruments, placing him in direct opposition to Mayor Mamdani, who has publicly opposed the plan. At the state level, the situation mirrors this division, with Comptroller DiNapoli affirming his commitment to maintain state investments while challenger Raj Goyle has pledged to terminate them.
Substantial Financial Stakes and Conflicting Perspectives
Financial disclosures have revealed considerable sums involved in these investments. The Guardian reported in 2024 that since the October 2023 attacks, US states and municipalities had purchased at least one point seven billion dollars worth of Israeli bonds. Dani Naveh, president of the Development Corporation for Israel, countered by highlighting that the corporation has sold over five point seven billion dollars in bonds worldwide since the Hamas attacks, describing them as offering "strong, steady returns" and a "meaningful way to stand with and support the Jewish state."
Naveh further characterised opposition as a "small and noisy disinformation campaign driven by antisemitism." In contrast, Mayor Mamdani's spokesperson referenced the mayor's recent press conference remarks, where he stated, "I don't think that we should purchase Israel bonds. We don't purchase bonds for any other sovereign nation's debt."
Legal and Fiduciary Arguments at the Core
Dawn's position is built on a firm legal foundation. The group argues that Israeli bonds are not merely passive market instruments but constitute direct loans to the Israeli government that finance its defence forces, weaponry, and military operations. Michael Omer-Man, Dawn's director of Israel-Palestine, emphasised that Israel Bonds openly markets its products as "supporting" the state, making it increasingly difficult to argue investments are made purely for sound financial reasons.
The organisation warns that these investments potentially enable human rights violations in Palestine and breach the fiduciary duty officials hold to invest public funds solely for the financial benefit of beneficiaries, such as pension holders.
Broader National Campaign and Local Legal Challenges
This warning forms part of a wider national movement. A coalition of groups has launched the "Break the Bonds" campaign, advocating for divestment at local levels and targeting state and union pension funds alongside university investments. Legal challenges are already emerging elsewhere; in Palm Beach County, Florida, residents have sued the county over its investment of seven hundred million dollars in local property taxes into Israeli bonds.
Lydia Ghuman of the Internationalist Law Center, representing the plaintiffs, argued, "These millions of dollars should be going to local needs. The fact that they are being invested in bonds that are not beating the rate of inflation and propping up the economy of a foreign government is a sign of the special interests gripping local politics."
The conflicting stances among New York's leadership underscore how technical financial decisions, such as pension fund investments, have become deeply contentious political issues, reflecting the ever-widening national divide over policy towards Israel.
