Sarah Leah Whitson is the Executive Director of DAWN.
New York State and City investments in so-called "Israel Bonds" are once again in the spotlight. Public officials, including candidates competing in the November election for State Comptroller, are debating whether taxpayer money should continue to finance a foreign military force implicated in grave abuses against Palestinians — particularly in Gaza, where Israeli forces have killed at least 71,000 people, the majority women and children. This debate is long overdue.
There is no dispute that Israel Bonds help fund Israel's military and security apparatus, as recent DAWN research further highlights. The Israeli government uses the funds it raises from American taxpayers to finance the weapons and costs of the Israel Defense Forces (IDF) and other Israeli armed police. The bonds directly support a government engaged in criminal military operations, unlawful occupation and apartheid rule over Palestinians. When New Yorkers buy these bonds, we become financially entangled in these crimes.
Supporters of these purchases claim they are prudent financial instruments. They are not. Israel Bonds are illiquid, nearly impossible to resell and offer below-market returns. Independent credit agencies rank them only marginally above junk status. They fail even the most basic standards of responsible public investing.
Supporters of these purchases claim they are prudent financial instruments. They are not.
- Sarah Leah Whitson
So why do our officials continue to buy them? The goal is hardly to protect retirees or taxpayers. Rather, they do so to express political support for Israel so that they can curry favor with pro-Israel lobbyists and donors. In the process, they transform public pension funds into a steady funding stream for foreign military operations at the expense of New Yorkers' financial security and moral standing.
These investments very clearly breach New York's international legal obligations. Last year, the International Court of Justice (ICJ) ruled, and the United Nations General Assembly (UNGA) affirmed, that Israel's decades-long military occupation of Palestine is illegal, ordering Israel to end it immediately. In a near unanimous vote, the UNGA directed governments not to assist Israel in its crimes, specifically urging them to prevent trade and business that helps Israel maintain its occupation. Complying with these international legal obligations is not optional; the UNGA resolution makes clear that these obligations extend to subnational public authorities and state-controlled entities, including cities, states, pension systems, treasuries and other custodians of public funds.
Continuing to purchase bonds that finance the IDF places New York in direct violation of these obligations. It also exposes public officials to potential liability for aiding and abetting Israel's unlawful conduct, particularly in light of the ongoing prosecution of Israeli officials for war crimes and crimes against humanity at the International Criminal Court (ICC).
New York can adopt clear policies prohibiting investments that contribute to grave human rights violations.
- Sarah Leah Whitson
At home, the legal risks are equally clear. Public officials have a fiduciary duty to act solely in the financial interest of beneficiaries. Under New York law, public fiduciaries are governed by statutory and regulatory standards that require investment decisions to be made solely in the interests of beneficiaries with "care, skill and caution." The interests of taxpayer beneficiaries require prioritizing stability, liquidity and competitive returns. Purchasing high-risk, politically motivated bonds violates that responsibility, placing ideology above sound financial management.
Beyond legal and financial risks, these investments damage New York's reputation. Public funds carry not only financial obligations but also ethical responsibilities to uphold nonviolence, non-discrimination and minority protections — particularly in how they allocate capital. Responsible investing means treating human rights as integral to fiduciary duty. Yet as institutions around the world reassess their exposure to human rights abuses, New York is moving in the opposite direction, doubling down on investments tied to civilian harm and collective punishment.
There is another path. New York can adopt clear policies prohibiting investments that contribute to grave human rights violations. Many public funds already apply ethical screens to tobacco, fossil fuels and weapons manufacturers. During the height of South Africa's apartheid rule, states and cities went much further, prohibiting any dealings with South African businesses — not just the government. Applying similar standards to Israel Bonds would align New York's financial practices with its stated values.
Ending purchases of Israel Bonds is not anti-Israel — It is pro-accountability. It sends a message that public money will not be used to bankroll unlawful violence or the permanent occupation of Palestine. It affirms that fiscal responsibility and human rights are not competing priorities, but complementary ones.
Civil society organizations, including DAWN, are calling on New York to act now. We are prepared to pursue legal remedies if officials continue to ignore their obligations. Responsible governance — not litigation — is our preferred path.
New Yorkers deserve investments that are lawful, ethical and financially sound. Our public funds should serve our communities — not foreign militaries engaged in ongoing abuses.
It is time for New York to put its residents first.
The views and positions expressed in this article are those of the author(s) and do not necessarily reflect the views of DAWN.
