The comptroller of New York City, an avowed supporter of Israel, has backtracked on his pledge to purchase the country’s bonds, citing deteriorating credit conditions and financial risks in the country.
Mark Levine, a Democrat who campaigned on buying Israeli bonds, told The New York Times that he has decided against the move. Notably, his decision was not based on opposition to Israel’s occupation of the West Bank or genocide in Gaza, but on its economic condition.
“I always said this would be based on financial considerations only, not politics – that’s still my position,” Levine said. “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.”
New York City’s purchase of Israeli bonds became a contentious issue in January 2026, after Levine told the Financial Times he was considering buying them, citing their economic performance.
Levine’s predecessor, Brad Lander, declined to buy new Israeli bonds in 2023. At the time, the city’s pension fund held around $39m in Israeli bonds, generating returns of around five percent.
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The city didn’t liquidate its holdings, but allowed them to mature without reinvesting.
Levine made purchasing Israeli bonds a key element in his election last year. That set up a potential clash with New York City Mayor Zohran Mamdani, who publicly backed divestment from Israel over its conduct in Gaza.
The mayor does not have the authority to overrule the comptroller’s decisions on bond purchases that fund the city workers’ pension system.
Levine, who speaks Hebrew, waded into Israel’s upcoming election.
“I feel a real closeness to the country, and I’m also heartbroken at the state of politics in the country right now,” he told The New York Times, criticising the government of Benjamin Netanyahu.
Levine’s defence of Israeli bonds came against the backdrop of several credit rating downgrades. In 2024, Moody’s downgraded Israeli bonds, calling them an “increasingly risky investment”.
Moody’s later reversed its outlook on Israel, but the bonds’ technical ratings remain below their pre-7 October 2023 level.