Rights Group Warns New York Executives Not to Invest Public Funds in Israeli Bonds

A human rights group has warned New York state and local officials that investing public funds in bonds issued by Israel violates international law and fiduciary duties and may expose officials and beneficiaries alike to “substantial legal, ethical, and financial risks,” Alice Speri reported for The Guardian.

Calls have been growing for divestment from Israel in the U.S. following the war in Gaza.

The warning, from the human rights group DAWN, was sent Friday alongside a 26-page memo to New York Gov. Kathy Hochul; state Attorney General Letitia James; New York City Mayor Zohran Mamdani; and state and city comptrollers Tom DiNapoli and Mark Levine, respectively.

The group called on officials to immediately cease new purchases and divest any current holdings in Israeli bonds, arguing the investments violate “legal obligations not to aid and abet Israeli crimes” as well as fiduciary duties to taxpayers, DAWN Executive Director Sarah Leah Whitson said in a statement.

The letter, which threatens litigation, comes amid growing calls for divestment from Israel in the U.S. following the war in Gaza, and as some elected officials have moved away from once-reflexive support for Israel. In 2023, then–New York City Comptroller Brad Lander ended the city’s nearly $40 million investment in Israeli bonds, citing legal and financial risks.

His successor, Levine, has indicated plans to reinvest, putting him in direct conflict with Mamdani, who has opposed the move. At the state level, the issue is similarly divisive, with DiNapoli saying he will maintain the state’s investments and challenger Raj Goyle pledging to end them.