New York City Comptroller Mark Levine has reversed a major campaign promise to resume investing city funds in Israel Bonds, drawing fierce criticism from Jewish leaders and former city officials who accuse him of retreating under pressure from Mayor Zohran Mamdani and the Democratic Party’s anti-Israel wing.
Levine, who repeatedly pledged during his 2025 campaign to restore the city’s longstanding investment in Israeli government bonds, announced Wednesday that his office would not move forward with the purchases, citing financial concerns, credit ratings and what he described as technical obstacles.
The reversal represents a significant political victory for Mamdani, who has openly opposed the city’s purchase of Israel Bonds and has advocated boycotts targeting the Jewish state.
Levine insisted that his decision was based entirely on investment considerations rather than political pressure.
“I always said this would be based on financial considerations only, not politics — that’s still my position,” Levine told The New York Times.
“But as of now, we feel that because of some technical challenges, and because of financial considerations, that this is not an investment that we can make right now.”
The explanation marks a sharp departure from Levine’s position during last year’s Democratic primary, when he presented Israel Bonds as a reliable investment and explicitly promised to restore them to the city’s portfolio.
During a June 2025 debate against former Brooklyn Councilman Justin Brannan, Levine defended the bonds’ longstanding financial record.
“We have a globally diversified portfolio, and that should include investments in Israel and Israel bonds, which have paid solid dividends for 75 years,” he declared at the time.
Levine continued defending the proposed investments after taking office in January, including as recently as April, despite growing opposition from anti-Israel activists.
His announcement Wednesday effectively maintains the policy established by his predecessor, Brad Lander, who allowed the city’s Israel Bond holdings to expire in 2023 without purchasing replacements.
New York City had invested in Israel Bonds for nearly five decades, beginning in the 1970s. At the time Lander discontinued the purchases, the city held approximately $40 million in the securities.
The investments had historically generated returns of approximately 5%, and previous comptrollers had defended them as financially sound.
Levine’s reversal drew particularly sharp criticism from former City Comptroller Scott Stringer, who had expanded the city’s investments in Israel Bonds during his tenure.
“They were a very sound investment,” Stringer said Wednesday.
Stringer warned that the decision could embolden activists associated with the Boycott, Divestment and Sanctions movement, which seeks to isolate Israel economically.
“This inaction will further empower the BDS [boycott, divestment and sanctions] movement around the country. That is my worry. And it could continue to contribute to more antisemitism.”
Former Brooklyn Assemblyman Dov Hikind, founder of Americans Against Antisemitism, was even more outspoken in his condemnation of Levine.
“A perfect example of a coward: a sellout and a fraud trying to appease the dangerous lunatics on the left driving NY and the country off a cliff. Shame on you,” Hikind wrote on social media.
The decision was welcomed by Mamdani, who has made opposition to Israel a prominent feature of his political career.
Speaking at a Wednesday press conference, the mayor expressed approval of Levine’s announcement.
“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 we should make an exception when it comes to Israel,” Mamdani said.
The mayor’s comments underscored the political significance of Levine’s reversal, particularly given the differences between the two officials on Israel.
Levine, who is Jewish and has maintained close relationships with mainstream Jewish organizations, has generally described himself as a supporter of Israel while criticizing certain policies of Prime Minister Binyamin Netanyahu’s government.
Mamdani, by contrast, has long identified with the movement to boycott Israel and has repeatedly faced criticism from Jewish organizations over his positions.
The two officials initially appeared headed for a confrontation over Israel Bonds when they took office at the beginning of the year, but have since developed a cooperative working relationship.
Levine’s decision removes one of the most visible disagreements between them.
The comptroller’s office maintained Wednesday that the decision should not be interpreted as a broader withdrawal from investments connected to Israel.
A spokesperson emphasized that Levine remains supportive of the Jewish state and said the city continues to hold more than $285 million in investments involving Israeli companies and other Israel-related assets.
Those holdings include publicly traded Israeli businesses and more than $1 million invested in Israeli real estate investment trusts.
The spokesperson said decisions concerning Israel Bonds and other securities are evaluated according to their suitability for the city’s investment portfolio and the financial interests of municipal employees and retirees.
New York City’s five public pension funds currently hold approximately $326 billion in assets, making the comptroller one of the most influential financial officials in municipal government.
The Israel Bond holdings previously represented a relatively small portion of the city’s overall investments, but their symbolic importance has made them a recurring source of political controversy.
Levine’s office pointed to changes in Israel’s credit ratings following the wars involving Hamas and Iran, as well as the performance of alternative investments.
Fitch Ratings lowered its outlook for Israel in 2024, while Moody’s and S&P Global also downgraded the country’s credit standing during the conflicts.
Although Moody’s and S&P have since restored their outlooks to stable, Israel’s overall credit ratings remain below their prewar levels.
Levine’s investment team also argued that the approximately 5% return available on certain two- and three-year Israel Bonds compares unfavorably with the city’s pension system, which recorded a 13% return over the previous year.
Critics countered that comparing fixed-income securities with the performance of an entire pension portfolio does not fully account for the different purposes and risk profiles of those investments.
They also noted that the comptroller’s office holds other securities with returns below those available from Israel Bonds.
In explaining why he had made such a firm campaign commitment before completing a full financial assessment, Levine acknowledged that he had expected Israel’s credit outlook to improve.
“Perhaps a year and a half ago,” he said, “I would have expected that the ratings would have been improved by now and/or that the interest rate would have gone up.”
Representatives of Israel Bonds disputed the suggestion that the securities were no longer attractive investments.
A spokesperson for the organization said Levine had repeatedly promised to restore the city’s purchases and had previously characterized the bonds as “a long-term safe and secure investment.”
The organization maintained that the description remains accurate.
Israel Bonds officials have also reported strong investor demand since the October 7, 2023, Hamas massacre, with purchases more than doubling during the subsequent period.
Other major public institutions have continued investing in the securities despite the political and security challenges facing Israel.
New York State’s pension system, overseen by State Comptroller Thomas DiNapoli, reportedly holds more than $360 million in Israel Bonds.
Former CUNY trustee and financier Jeffrey Wiesenfeld, who has been active in promoting the investments, criticized Levine’s decision and pointed to the continued purchases by other public entities.
“I am grievously disappointed. NYS AND Palm Beach county alone hold $1 BILLION [in Israel bonds],” Wiesenfeld said.
“There has been no change in the high quality. Because of the US 10-year treasury, the rates are the highest ever. At least be truthful.”
The reversal has also been celebrated by anti-Israel activists who had urged Levine to maintain Lander’s policy of avoiding direct purchases of Israeli government debt.
For Jewish leaders who supported Levine’s campaign, however, the announcement has raised questions about the reliability of his commitments on issues involving Israel, particularly at a time when Mamdani’s administration is seeking to reshape the city’s relationship with the Jewish state.
Levine has left open the possibility of purchasing Israel Bonds at a later date if financial conditions change, but his office has announced no timetable for reconsidering the decision.