Mamdani pledges New York City pensions divestment from Israel Bonds

New York City’s Democratic mayoral nominee, Zohran Mamdani, said Sunday that he believes the city’s pension funds should not be invested in Israel Bonds due to what he described as 'Israel’s' violations of international law.

During an appearance on CBS New York’s The Point with Marcia Kramer, Mamdani was asked whether he would push for the divestment of city pension funds from companies doing business with 'Israel' or from Israel Bonds, a longstanding investment for the city.

“I think that we should not have a fund that is invested in the violation of international law,” Mamdani said. He added that current NYC Comptroller Brad Lander had taken the “right approach” by halting new purchases of Israel Bonds.

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Mamdani emphasized that the focus should be on areas where the city is “directly implicated.” “In the city pension fund, purchasing Israel Bonds, that to me, is something that is a clear indication of our values, and we know that our values are actually with international law,” he said.

As of March 2024, the New York State Common Retirement Fund held approximately USD 352 million in Israel Bonds, making it one of the largest US-based investors in the securities. NYC’s pension funds, worth a total of USD 289 billion and overseen by the comptroller, include the New York Employees' Retirement System, the Fire and Police Pension Funds, the Teachers’ Retirement System, and the Board of Education Retirement System.

NYC maintained a 50-year record of investing in Israel Bonds until 2023, when Lander decided not to reinvest USD 30 million of matured bonds, citing a policy against foreign sovereign debt and an effort not to favor one country over another. The move drew criticism and accusations of yielding to the Palestinian-led Boycott, Divestment and Sanctions (BDS) movement, though Lander has maintained that his decision was not political.

City pension funds still hold USD 315 million in 'Israeli' firms and real estate.