By Trendsetter Tribune 
The disagreement came into sharper focus this week after Levine signaled his intention to resume New York City pension fund investments in Israeli bonds, reversing a decision by his predecessor, Brad Lander, who declined to reinvest after the bonds matured.
Levine, who took office on January 1, has argued that Israeli bonds have been a long-standing and financially sound part of the city’s portfolio. In an interview last week, he noted that the city had invested in Israeli bonds continuously since the 1970s and had generated consistent returns.
“Israeli bonds had been part of the portfolio for decades,” Levine said. “They’ve performed well, and the city has benefited financially.”
Most Israeli government bonds held by institutional investors offer returns of roughly five percent, with some exceeding comparable U.S. Treasury yields.
Mayor Mamdani, who has expressed support for the Boycott, Divestment and Sanctions (BDS) movement targeting Israel, publicly opposed the move during a press conference on Wednesday.
“I don’t think we should purchase Israel bonds,” Mamdani said. “We don’t purchase bonds for any other sovereign nation’s debt, and the comptroller has made his position clear. I continue to stand by mine.”
Despite the disagreement, both officials have emphasized a willingness to work together on other priorities. Levine endorsed Mamdani during the Democratic primary, and the two have aligned on several domestic policy issues. Still, the bonds debate could test their relationship early in their administrations.
As comptroller, Levine serves as the city’s chief financial officer and financial watchdog, overseeing audits, contracts, and the management of the city’s pension funds. The office is often viewed as the second most powerful position in city government and can function as a counterweight to the mayor. Levine leads a staff of approximately 800 employees.
The current dispute mirrors tensions from the previous administration, though with roles reversed. Former Comptroller Brad Lander opted not to reinvest in Israeli bonds after they matured in 2023, a decision that sparked a public feud with then-Mayor Eric Adams, who accused Lander of politically targeting Israel. Lander denied the accusation, maintaining that the decision aligned with city investment policies rather than political considerations.
At the time, Lander noted that the city continued to hold more than $300 million in other Israeli assets and that it did not invest in bonds issued by other foreign governments. When he took office in January 2022, the city held approximately $39 million in Israeli bonds, a small fraction of the pension system’s overall holdings.
As of June, New York City’s five pension funds collectively managed more than $294 billion in assets, making any Israeli bond investment a relatively minor component of the portfolio.
The pension funds are governed by boards of trustees that typically include the comptroller, a mayoral appointee, and labor representatives. While the mayor does not directly control investment decisions, mayoral appointees can influence outcomes on some boards.
Levine has downplayed the possibility that the mayor could block reinvestment, telling Jewish Telegraphic Agency last year that the mayor “just doesn’t have the votes for that,” adding that there is little precedent for mayors driving specific pension investment decisions.
The issue has drawn protests from anti-Zionist activist groups opposed to reinvestment. On his first day in office, Mamdani also revoked an executive order issued by Adams that barred city agencies from boycotting Israel, though New York City law continues to prohibit discrimination based on national origin.
The bond dispute unfolds as the city faces significant fiscal challenges. Levine has inherited an estimated $12.6 billion budget gap over the next two fiscal years, which City Hall must address as Mamdani pushes forward with major policy proposals, including free bus service and expanded child care.