NYC Comptroller breaks campaign promise to Jewish voters to buy Israel Bonds, drawing praise from Mamdani

New York City Comptroller Mark Levine’s decision not to resume the city’s investments in Israel Bonds, breaking a campaign promise he made to Jewish voters last year, drew mixed reactions Wednesday from supporters of Israel and advocates for the Palestinian cause. It also marked another symbolic shift in the city’s relationship with Israel under Mayor Zohran Mamdani.

The decision, first reported by The New York Times, is a significant reversal for Levine, the city’s highest-ranking Jewish elected official, who repeatedly promised last year to restore the investments after his predecessor ended a nearly 50-year practice of buying Israeli government debt.

The city’s pension funds previously held $39 million in Israel Bonds, which returned roughly 5%. Former Comptroller Brad Lander, who is also Jewish, decided not to purchase new bonds when the holdings matured in 2023, citing the city’s policy against investing in foreign government debt.

In an interview with the Times, Levine cited financial concerns and technical challenges, including those related to the war in Gaza and Israel’s political instability, in explaining why Israel Bonds are “not an investment that we can make right now.”

He insisted the decision was not driven by political pressure or a shift in his personal support for Israel, and left open the possibility of purchasing Israel Bonds in the future. The pension funds still hold $285 million in Israel-related assets, including common stocks and more than $1 million in Israeli real estate investment trusts.

The move was nonetheless a political victory for Mamdani, a longtime supporter of boycotts of Israel, who opposed the bond purchases and has sought to reshape New York City’s relationship with Israel, politically, emotionally and economically.

“I welcome the comptroller’s decision,” Mamdani told the Forward on Wednesday. “It is something that I’ve said in the past … I don’t believe that our city should purchase Israel bonds. We don’t purchase the bonds of any other sovereign nation. I don’t think that we should make an exception when it comes to Israel.” The mayor can neither prevent the investment nor overrule it.

Lander, now a congressional candidate, also voiced his approval via text message. “The pension funds are not invested in the bonds of other foreign countries,” Lander said, “and previous comptrollers’ decisions to buy Israel bonds nonetheless were a political move, not a fiduciary one.”

Why Levine changed his mind

For Jewish voters who supported Levine’s campaign, the reversal raises questions about a promise he made while seeking the office of the city’s chief financial officer.

“This has been a rock-solid investment for decades,” he said during the campaign. “Israel has never missed a bond payment, and a good, balanced portfolio should have global diversity.”

When Mamdani suggested Lander’s move should become permanent, Levine pushed back. “Israel bonds have never missed a payment in 70 years, ever, not once,” he said in April. “They pay excellent interest.”

He also called out critics who had been protesting outside his office. “We have had no protesting about our investments in Saudi Arabia, our investments in Pakistan or China, only this one little, tiny sliver,” Levine said.

A spokesperson for Levine’s office said the decision was strictly financial, not political, and noted that the decision applies only to the city’s short-term investments, where concerns about regional instability and financial risks make Israel Bonds “less attractive than other options.” Though the office did acknowledge that it invests in some bonds with lower returns.

Levine conceded that when he made the campaign promise, he did not have a complete understanding of the city’s financial options. “Perhaps a year and a half ago,” Levine told the Times, “I would have expected that the ratings would have been improved by now and/or that the interest rate would have gone up.”

Jewish leaders, who criticized Lander’s decision when it was revealed last year, remained largely silent on Wednesday.

Former comptroller warns of consequences

Scott Stringer, who served as comptroller from 2013 to 2021 and also ran for mayor last year, warned that Levine’s decision could have broader political and social consequences. “This is a major victory for BDS, and it’s going to have long-term ramifications,” Stringer told the Forward. “This indecision will, unfortunately, spark more BDS calls that could cause further antisemitism.”

Stringer and his predecessors — John Liu and Bill Thompson — purchased tens of millions of dollars in bonds during their time in office. Stringer called Israel Bonds a “sound long-term investment” and argued that the city should not base its decisions on short-term developments.

“It’s a sound investment today, and it’s a sound investment for the future,” he said, adding that it also sends an important symbolic message, especially “because of the politics of the moment.”

When Landers ended the investment in 2023, former Mayor Eric Adams protested but couldn’t stop it. Moshe Davis, who was Adams’ Jewish liaison and worked with then-First Deputy Mayor Randy Mastro, drafted a letter to Lander, saying the decision called into question his “fiduciary duty to the city’s pensioners.” On Wednesday, Davis suggested Levine was “feeding the BDS lie” just like his predecessor.

“Our city deserves a comptroller who stands up to anti-Israel propaganda,” Davis said, “the way he promised on the campaign trail.”

An Israel Bonds spokesperson criticized Levine’s reversal, pointing to his repeated campaign promises. Nate Miller, a spokesperson for Israel Bonds, pointed to the strength of Israel’s economy and said investors have purchased more than $8.5 billion in Israel Bonds since the Oct. 7, 2023 attack on Israel and the Gaza war. Despite Levine’s decision, Miller said, “We look forward to sitting down with him and his team.”

Levine’s spokesperson said the comptroller’s office “continues to evaluate investment opportunities based on their financial merits and our fiduciary responsibilities.”

Jacob Kornbluh is the Forward’s senior political reporter. Read full bio →

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