By: Rob Otto

The Democratic nominee for New York City comptroller, Manhattan Borough President Mark Levine, has pledged to reinvest city pension funds in Israeli government bonds – a dramatic reversal of current Comptroller Brad Lander’s decision to pull city money out of the long-held investment. The New York Post was first to report the political and financial firestorm now surrounding the city’s pension fund strategy.

When Lander took office in 2022, the city’s pension system held just under $40 million in Israeli bonds – a portfolio tradition dating back to 1974. But when those bonds matured in early 2023, Lander opted not to renew the investment, marking the first time in decades that New York City had no stake in Israel’s sovereign debt. Critics say the move amounted to a quiet divestment – and potentially a nod to anti-Israel sentiment on the far left. NY Post reported Lander’s divestment sparked swift political backlash.

Levine, now favored to win the comptroller race in November, has publicly committed to reversing course. “We have a globally diversified portfolio, and that should include investments in Israel and Israel Bonds, which have paid solid dividends for 75 years,” Levine said during a primary debate, as reported by the NY Post.

He emphasized the anomaly of New York City standing alone in its absence from Israeli bond holdings. “We are now the only pension fund in America without that investment,” Levine stated. “Prudent management for global diversity should include investment in those assets.” NY Post highlighted this as a key campaign issue for Levine.

Lander, however, defended his decision in a detailed July letter to Deputy Mayor Randy Mastro, saying prior comptrollers made political decisions by favoring Israel over other nations. “The decision to invest only in Israel bonds, when the funds held no other country’s bonds, and to invest assets intended for short-term cash management in longer-term bond instruments, was a political decision, not a fiduciary one,” he wrote.

While Lander insisted his divestment wasn’t anti-Israel – noting he’s Jewish and identifies as a Zionist – he argued the pension fund should not prioritize Israel over other countries. “We treat investments in Israel as we treat investments in any other country. No better, and no worse,” he wrote. “You appear to be asking that the City’s pension funds treat Israel better than all other countries. That would also be politically motivated, and inconsistent with fiduciary duty,” Lander added, according to the NY Post.

But former Comptroller Scott Stringer wasn’t buying it. He slammed Lander’s explanation as dishonest and offensive. “Brad got busted for BDS’ing the pension system. He got caught, and now he has to own up to it,” Stringer told the Post. Visibly angry, Stringer added, “If you get busted, you can’t be trusted.”

Despite the controversy, Israeli bonds have historically yielded stable returns – around 5% annually. The New York state pension system, under Comptroller Tom Di Napoli, currently holds over $360 million in Israel bonds – underscoring how far outside the norm Lander’s approach has been.

Levine’s stance signals a likely return to the city’s decades-long tradition of investing in the Jewish state – and a political rebuke of the anti-Israel activism increasingly taking hold in progressive circles