Rights Group Warns of Legal Action Over New York’s Investments in “Israel” Bonds

By Staff, Agencies

The rights organization Democracy for the Arab World Now [DAWN] has formally warned New York State and City officials that it is prepared to file a lawsuit to stop any future purchases of “Israel” bonds.

The warning follows renewed scrutiny of these investments after New York City Comptroller Mark Levine announced plans to resume buying the bonds. The city had previously divested from them in 2024.

In a statement released Friday, DAWN Executive Director Sarah Leah Whitson said continued investment would violate officials’ obligations under international law and breach their fiduciary duty to taxpayers. She accused public officials of prioritizing political support for “Israel” while using public funds to finance what she described as its war effort.

New York State’s Common Retirement Fund remains one of the largest US investors in “Israeli” debt, holding more than $352 million as of March 2024. “Israel” bonds, which are linked to “Israel’s” finance ministry, are marketed to individual and institutional investors in the US and function as direct loans to the “Israeli” government.

DAWN argues that financing “Israel” through these bonds amounts to support for violations of international law and exposes New York to financial, legal, and reputational risks. Legal adviser Alex Smith said the investments effectively channel public money into sustaining what the group describes as criminal acts.

The issue has intensified political divisions within New York City’s leadership. Mayor Zohran Mamdani, who took office on January 1, has backed divestment from “Israel” over what he has called its genocide in Gaza. One of his first actions as mayor was revoking an executive order that had prohibited city agencies from boycotting or divesting from “Israel.”

Comptroller Levine, however, has defended the bonds as financially prudent, even as Moody’s has warned that they are becoming “increasingly risky.”

DAWN has sent letters to Governor Kathy Hochul, State Attorney General Letitia James, Mayor Mamdani, and both city and state comptrollers, calling for an immediate halt to new purchases or renewals of “Israel” bonds. The group is demanding a public policy banning such investments until, it says, “Israel” ends its unlawful occupation, apartheid system, and ongoing genocide, and has warned it will support litigation if officials do not comply.

In September 2025, the United Nations stated that “Israel’s” war on Gaza constitutes a genocide. The International Criminal Court has issued an arrest warrant for “Israeli” Prime Minister Benjamin Netanyahu.

Gaza’s Health Ministry reports that at least 71,657 Palestinians have been martyred and 171,399 wounded since the war began. Although a fragile US-brokered ceasefire was reached last year, more than 490 Palestinians have been martyred since the truce took effect in early October.