Israel boycott could cost NYC pension funds over $37 billion – report

New York City’s public pension funds risk losing $37.55 billion in future returns over the next decade if Mayor Zohran Mamdani decides to boycott Israel and divest from Israel bonds, according to a new report by the JLens Investment network.

JLens is affiliated with the Anti-Defamation League (ADL), an international advocacy organization whose objective is to combat antisemitism and other forms of bigotry and discrimination.

The JLens report warned that such losses would be most acutely felt by NYC public-sector workers, including teachers, police officers, and firefighters whose retirement systems depend on pension fund performance.

“While the debate around BDS often centers on moral and political arguments, this analysis highlights that there may also be material financial considerations,” the report stated, referring to the anti-Israel Boycott, Divestment, and Sanctions movement.

“As the NYC Pension Funds’ board of trustees navigate increased political pressure, careful consideration of a range of potential economic outcomes – alongside legal, fiduciary, and policy factors – may be relevant to responsible long-term stewardship of plan assets,” the report added.

NYC top financial official Mark Levine argued earlier this year that New York benefited from continued investments in Israel bonds due to their stability.

“Israel bonds have never missed a payment in 70 years, ever, not once,” Levine said. He added that the investments help secure stronger returns for retirees. Historical data shows that Israel bonds have averaged around 5% annually, higher than many other investment options.

ADL CEO Jonathan Greenblatt said the report underscores the financial risks of anti-Israel divestment policies affecting municipal pension funds.

“While some in New York, including Mayor Mamdani, have publicly supported the BDS movement, an international campaign aimed at isolating and delegitimizing the world’s only Jewish state, this analysis highlights the potentially serious financial consequence of applying BDS-aligned divestment strategies to the city’s pension funds,” Greenblatt said.

He warned, “This research shows that divestment strategies guided by the BDS campaign can be bad fiscal policy, and we believe that they risk contributing to an environment where Jewish New Yorkers are already targeted and marginalized.”

Zohran Mamdani has a history of pro-Palestinian activism and has repeatedly described Israel’s military campaign in Gaza as “genocide” following the Hamas-led October 7, 2023, attack on southern Israeli communities.

The New York City mayor began his tenure in January by revoking the city's adoption of the IHRA Definition of Antisemitism, a move that was condemned by Jewish groups in the United States.

In April, he also drew criticism from some members of New York’s Jewish community after he declined to attend the annual NYC Israel Parade, which New York mayors have traditionally attended regardless of political affiliation.

New York City is also home to a growing number of Israeli-founded tech firms. A U.S.–Israel Business Alliance report found that at least 30 Israeli unicorns operate in the city, contributing to its technology sector and local job market.

New York City is also home to a growing number of Israeli-founded technology companies. A U.S.–Israel Business Alliance report found that at least 30 Israeli unicorn companies operate in New York. These firms, defined as privately held companies valued at over $1 billion, contribute to the city’s tech sector and employment base.