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Joseph Hernandez, Republican candidate for New York State Comptroller, speaking with voters. Photo: Hernandez campaign<\/p>\n
The plan of a Democratic candidate for New York comptroller to divest the state of its holdings in Israel bonds<\/a> violates the fiduciary duties of an office which oversees the management of hundreds of billions of dollars in pension funds and other assets, his Republican opponent, Joseph Hernandez, told The Algemeiner during an exclusive interview on Monday.<\/p>\n Hernandez, a Cuban refugee whose family fled the Castro regime, explained that the proposal, promised by former Kansas state Rep. Raj Goyle (who moved to New York after a failed bid for US Congress in 2010), would amount to an endorsement of the boycott, divestment, and sanctions (BDS) movement<\/a> against Israel while alienating a country widely regarded as arguably the most reliable US ally.<\/p>\n Israel bonds, he added, are one of the safest assets a government could own. He has promised to invest $1 billion in them if he is elected.<\/p>\n \u201cFrom a purely financial perspective, these are good investments. You would put your own money in this for sure, and you shouldn\u2019t apply politics to the equation,\u201d he said. \u201cImagine if we stopped investing the bonds of other foreign countries or vice versa because of disagreements over policy. That\u2019s just bad decision making.\u201d<\/p>\n \u201cThe economic rationale for investing in Israeli bonds is impeccable,\u201d Hernandez continued. \u201cIsrael has an exploding technology sector producing giant leaps in artificial intelligence and the next generation of health care and biotech. We should be partnering with them in these areas, beyond the bonds. I think the relationship, from an investment perspective, should be broader. As the fiduciary and ultimately as the sole trustee of the New York State pension fund, I will seek ways not only to increase investment on the bonds side but also to collaborate on bringing the next generation of technologies to New York and promote a new era of job growth in the state.\u201d<\/p>\n In New York City specifically, records show that Israel bonds, historically yielding approximately 5 percent annually, have outperformed many alternatives.<\/p>\n As for the state overall, Israeli firms pour billions of dollars and tens of thousands of jobs into the local economy, and business experts have warned<\/a> that a push for divestment could lead Israeli-associated and Jewish-owned companies to leave.<\/p>\n A study released by the United States-Israel Business Alliance in October revealed that, based on 2024 data, 590 Israeli-founded companies directly created 27,471 jobs in New York City that year and indirectly created over 50,000 jobs when accounting for related factors, such as buying and shipping local products.<\/p>\n These firms generated $8.1 billion in total earnings, adding an\u00a0estimated $12.4 billion in value to the city\u2019s economy and $17.9 billion in total gross economic output.<\/p>\n As for the entire state, the report, titled the \u201c2025 New York \u2013 Israel Economic Impact Report,\u201d found that 648 Israeli-founded companies generated $8.6 billion in total earnings and $19.5 billion in gross economic output, contributing a striking $13.3 billion in added value to the economy<\/a>. These businesses also directly created 28,524 jobs and a total of 57,145 when accounting for related factors.<\/p>\n From financial tech leaders like Fireblocks to cybersecurity powerhouse Wiz, Israeli entrepreneurs have become indispensable to the innovation ecosystem. The number of Israeli-founded \u201cunicorns,\u201d privately held companies with a valuation of at least $1 billion, operating in New York City has quadrupled since 2019, increasing from five to 20.<\/p>\n However, anti-Israel activists in the US have been pushing for state and local governments, in addition to businesses, universities, and various cultural forums to divest all assets from Israel-linked entities in accordance with the BDS movement.<\/p>\n The\u00a0BDS movement seeks to isolate Israel<\/a> on the international stage as the first step toward its elimination. Leaders of the movement have repeatedly stated their goal is to destroy the world\u2019s only Jewish state.<\/p>\n Goyle\u2019s plan would enact the divestment component of BDS by aiming to limit Israel\u2019s capacity to issue bonds for the purpose of borrowing money, a core function of government which raises capital for expenditures such as roads and bridges while contributing to economic health, market stabilization, and a high credit rating.<\/p>\n The New York Post reported last month that Goyle wants to fully divest $338 million in foreign assets, including Israel bonds, from New York\u2019s retirement fund.<\/p>\n \u201cI\u2019m here to tell you that when I am comptroller, we will not renew the foreign bond portfolio of the state comptroller\u2019s office and that includes Israel bonds,\u201d Goyle \u00a0told a gathering of supporters of the left-wing Working Families Party. \u201cWe will not send a blank check for [Israeli Prime Minister] Benjamin Netanyahu\u2019s war crimes in Gaza.\u201d<\/p>\n The state comptroller\u2019s office manages pensions for state and municipal workers and runs the\u00a0Common Retirement Fund, one of the largest pension funds in the country with a $291 billion investment portfolio. It currently holds about $337.5 million in Israel bonds.<\/p>\n Hernandez contrasted his view with Goyle\u2019s, arguing that the US should continue to be a friend of both Israel and the Jewish people.<\/p>\n \u201cI live in New York, the largest Jewish population outside of Israel. I see what this community contributes to America and to our society,\u201d he said. \u201cThe relationship that we have is unbreakable and it is one we should continue to invest in both socially, politically, and financially.\u201d<\/p>\n Across the political spectrum, Israel bonds are widely considered wise investments.<\/p>\n \u201cThey\u2019re stable, they\u2019re guaranteed, they\u2019ve never had a problem, and it\u2019s a good investment,\u201d state Assemblyman David Weprin, a Democrat and former chair of the New York City Council Finance Committee, told the Post.<\/p>\n Goyle is not the only New York Democrat advocating a rupture in the state\u2019s financial relationship with Israel. New York City Mayor Zohran Mamdani<\/a>, who entered office last month, has been an outspoken supporter of the BDS movement.<\/p>\n Mamdani, a far-left democratic socialist who has made anti-Israel activism a cornerstone of his political career, has repeatedly accused Israel of \u201capartheid\u201d and refused to recognize its right to exist as a Jewish state.<\/p>\n Such positions have raised alarm bells among not only New York\u2019s Jewish community but also Israeli business owners and investors, who fear a hostile climate under Mamdani\u2019s leadership.<\/p>\n