New York State Comptroller Tom DiNapoli has run the state’s pension funds for 18 years. This year, for the first time in that stretch, he has a Democratic primary fight on his hands, and his purchases of Israel Bonds have become an issue in it.
The Intercept reported that a state ethics body raised concerns about a trip DiNapoli took to Israel that was paid for by the Jewish Community Relations Council of New York. In a February 2, 2024, letter to the comptroller, the New York State Commission on Ethics and Lobbying in Government approved the council’s reimbursement but said several commissioners worried it “could give reasonable basis for the impression that a person could improperly influence you.” The letter was obtained through a public records request and shared exclusively with the outlet. The commission declined to comment.
The trip and the bonds
The council has a financial relationship with Israel Bonds, which issues Israeli government debt securities in the United States. An itinerary the council drafted, obtained by Jewish Voice for Peace New York, had DiNapoli slated to meet with Israel Bonds staff. According to its website, the council received financial backing from Israel Bonds in 2024. A council spokesperson said that donation paid for a float in the 2024 Israel Day parade, which DiNapoli regularly attends.
Lisa Mulleneaux, a researcher with the group’s “Break the Bonds” campaign, filed a complaint with the commission in October. She wrote that DiNapoli “engaged in a foreign policy function far outside his statutory mandate as a fiduciary to millions of pensioners and public employees.”
A DiNapoli spokesperson pointed to the commission’s eventual approval of the reimbursement and said the office was unaware of any ethics complaint tied to the trip.
The Intercept reported that DiNapoli has backed Israel Bonds enthusiastically, including a $20 million pension fund investment after the October 7 attacks. Since the February 2024 trip he has put $120 million more of the state’s common retirement fund into the bonds, bringing the total held by state pension funds to $332.5 million, the outlet said.
The primary
Two challengers, Raj Goyle and Drew Warshaw, have each pledged to divest from Israel investments if elected. Both run to DiNapoli’s left. Their position matches that of Brad Lander, the former New York City comptroller, who chose not to buy new Israel Bonds while overseeing the city’s pension fund.
Critics raise two arguments. Dani Noble, an organizer with Jewish Voice for Peace, called the bonds “unrestricted loans to the Israeli military and government.” State employee Becky Silber said she was “gutted” to learn in 2024 that her retirement money was funding Israel.
The second is financial. Unlike traditional foreign-debt assets, Israel Bonds cannot be sold on a secondary market and must be held to maturity, and critics point to a decline in Israel’s credit rating in recent years. “It is hard to justify this as financial prudence or an effective strategy for diversification,” said Kaycee Wimbish, a Kingston resident active with the Mid-Hudson Valley chapter of the Democratic Socialists of America.
