Zohran Mamdani’s Stance on NYC Pension Funds

Zohran Mamdani, if he becomes mayor, intends to advocate for the sale of New York City’s pension funds linked to Israel.

In a recent interview, he expressed, “I don’t believe we should maintain a fund that operates in violation of international law.” He made these comments during an appearance on CBS2 New York’s “Points with Mercia Kramer.”

Mamdani noted that he supports the current strategy of Secretary Brad Lander, which involves distancing the city’s investments from those with Israeli ties. This, he believes, is the appropriate direction for the city.

Back in 2022, when Lander assumed office, approximately $40 million of the city’s pension fund was invested in Israeli bonds. However, despite losing his primary election to socialist candidates, Lander chose to divest entirely from these bonds, which had been a staple since the 1970s, and did not reinvest as they matured.

As it stands, the city reportedly still has over $300 million invested in Israeli companies.

“It’s crucial to recognize where we are directly involved,” Mamdani highlighted. He emphasized that purchasing Israeli bonds from the City Pension Fund signals a certain set of values that he believes should align with international law.

Mamdani, a leading candidate in the Democratic race for mayor, hasn’t heavily focused on the campaign but has made clear his support for various measures including boycotts against Israel. Nonetheless, he has become more cautious. For instance, even after previously chanting “BDS” at a pro-Palestinian rally in 2021, he refrained from endorsing calls for complete divestment from all Israeli companies when questioned.

In the mayoral context, the mayor appoints a member to the Pension Committee, alongside a director and a union representative for the workforce. This setup means that should Mamdani be elected, he would seek to contest the Secretary regarding investments in Israeli bonds.

Mark Levine, who is running for Secretary and is likely to succeed Lander, has been a proponent of investing in Israeli bonds. A spokesperson reiterated his position, stating, “Mark has been clear about his stance on Israeli debt throughout the campaign and will work closely with pension fund councillors to focus on stable investments that yield strong returns for recipients.”

A spokesperson for Israeli bonds responded to Mamdani’s comments, remarking, “I haven’t weighed in on the candidate’s statements, but it’s worth noting that Israeli bonds have substantial backing, with investments exceeding $5.5 billion since October 7th, backed by the national government, including that of New York State.” They emphasized that the recent record-breaking investments showcase both Israel’s strength and the confidence of Americans in its future.

Former City Director Scott Stringer criticized Mamdani’s initiative to halt investments in Israeli bonds. He remarked, “It would be a significant error for the next mayor to divest from Israeli bonds. This has been a sound investment since the 1970s.”