Blab Politics
New York City Pension Funds Face $37 Billion Losses if Divested from Pro-Israel Companies, ADL Report Shows
A new analysis released on June 10, 2026 by the Anti‑Defamation League (ADL) and its affiliate JLens estimates that removing New York City pension investments in companies that do business with Israel could reduce the city’s pension assets by more than $37 billion over the next decade.
The report compares the historical performance of two hypothetical large‑cap U.S. equity portfolios: one that includes 47 major American firms targeted by the Boycott, Divestment and Sanctions (BDS) movement and one that excludes those firms. The excluded portfolio earned an average annual return of 13.7 percent, while the portfolio that included the BDS‑targeted firms returned 11.7 percent, a difference of roughly two percentage points. Applying that performance gap to the city’s projected equity holdings between 2025 and 2035, the analysis projects a cumulative loss of $37.55 billion.
The companies identified in the report include Alphabet, Amazon, Microsoft, Boeing, Bank of America, Chevron, Cisco, Ford, IBM, Intel, McDonald’s, Meta, JPMorgan Chase and Exxon Mobil, among others. These firms are among the largest U.S. companies that maintain business relationships with Israel.
The five pension systems that would be affected are the Teachers’ Retirement System, the New York City Employees’ Retirement System, the Police Pension Fund, the Fire Pension Fund (FIRE), and the Board of Education Retirement System. The report breaks down the projected losses by fund: $15.09 billion for the Teachers’ system, $10.91 billion for the Employees’ system, $7.13 billion for the Police Fund, $3.02 billion for FIRE, and $1.39 billion for the Board of Education.
The analysis notes that any shortfall in investment returns would need to be offset by higher employer contributions from the city and taxpayers. The report warns that increased pension obligations could force the city to redirect resources away from essential services, reduce spending in areas such as education, public safety or social services, or raise revenues through higher taxes or fees.
Mayor Zohran Mamdani, who was elected in November 2025, has publicly supported the BDS movement and serves on the boards of all five pension systems. The report cites his stance as a factor that could make divestment more likely under his administration. In contrast, former Comptroller Brad Lander divested city funds from Israel bonds when they matured, while current Comptroller Mark Levine has said he will invest in Israel bonds and Israeli firms.
According to a statement released by ADL CEO Jonathan Greenblatt, the research shows that “divestment strategies guided by the BDS campaign can be bad fiscal policy, and we believe that they risk contributing to an environment where Jewish New Yorkers are already targeted and marginalized.”
The report is based on a decade of historical performance data and extrapolates that a BDS‑aligned strategy applied to the city’s large‑cap U.S. public equity portfolios could reduce total pension assets by approximately $37.55 billion between 2025 and 2035.
City officials have not yet responded to the report. The analysis was made public on the ADL website and was also covered by the New York Post, which highlighted the potential financial impact and the mayor’s support for BDS. The report’s findings add to ongoing discussions about the city’s investment policy and the broader debate over the economic implications of the BDS movement.
The ADL and JLens have previously conducted similar studies on university endowments, estimating that a BDS‑aligned strategy could cost the largest 100 endowments $33 billion over a decade. The current report extends that methodology to municipal pension funds.
The city’s pension funds will continue to be managed by the Comptroller’s office, and any changes to investment strategy would require approval from the pension boards and potentially the city council. Until such decisions are made, the projected losses remain a theoretical estimate based on past performance.
The report underscores the financial stakes of divestment decisions and suggests that policymakers consider the potential impact on public services and taxpayers before adopting a BDS‑aligned investment policy.
The report compares the historical performance of two hypothetical large‑cap U.S. equity portfolios: one that includes 47 major American firms targeted by the Boycott, Divestment and Sanctions (BDS) movement and one that excludes those firms. The excluded portfolio earned an average annual return of 13.7 percent, while the portfolio that included the BDS‑targeted firms returned 11.7 percent, a difference of roughly two percentage points. Applying that performance gap to the city’s projected equity holdings between 2025 and 2035, the analysis projects a cumulative loss of $37.55 billion.
The companies identified in the report include Alphabet, Amazon, Microsoft, Boeing, Bank of America, Chevron, Cisco, Ford, IBM, Intel, McDonald’s, Meta, JPMorgan Chase and Exxon Mobil, among others. These firms are among the largest U.S. companies that maintain business relationships with Israel.
The five pension systems that would be affected are the Teachers’ Retirement System, the New York City Employees’ Retirement System, the Police Pension Fund, the Fire Pension Fund (FIRE), and the Board of Education Retirement System. The report breaks down the projected losses by fund: $15.09 billion for the Teachers’ system, $10.91 billion for the Employees’ system, $7.13 billion for the Police Fund, $3.02 billion for FIRE, and $1.39 billion for the Board of Education.
The analysis notes that any shortfall in investment returns would need to be offset by higher employer contributions from the city and taxpayers. The report warns that increased pension obligations could force the city to redirect resources away from essential services, reduce spending in areas such as education, public safety or social services, or raise revenues through higher taxes or fees.
Mayor Zohran Mamdani, who was elected in November 2025, has publicly supported the BDS movement and serves on the boards of all five pension systems. The report cites his stance as a factor that could make divestment more likely under his administration. In contrast, former Comptroller Brad Lander divested city funds from Israel bonds when they matured, while current Comptroller Mark Levine has said he will invest in Israel bonds and Israeli firms.
According to a statement released by ADL CEO Jonathan Greenblatt, the research shows that “divestment strategies guided by the BDS campaign can be bad fiscal policy, and we believe that they risk contributing to an environment where Jewish New Yorkers are already targeted and marginalized.”
The report is based on a decade of historical performance data and extrapolates that a BDS‑aligned strategy applied to the city’s large‑cap U.S. public equity portfolios could reduce total pension assets by approximately $37.55 billion between 2025 and 2035.
City officials have not yet responded to the report. The analysis was made public on the ADL website and was also covered by the New York Post, which highlighted the potential financial impact and the mayor’s support for BDS. The report’s findings add to ongoing discussions about the city’s investment policy and the broader debate over the economic implications of the BDS movement.
The ADL and JLens have previously conducted similar studies on university endowments, estimating that a BDS‑aligned strategy could cost the largest 100 endowments $33 billion over a decade. The current report extends that methodology to municipal pension funds.
The city’s pension funds will continue to be managed by the Comptroller’s office, and any changes to investment strategy would require approval from the pension boards and potentially the city council. Until such decisions are made, the projected losses remain a theoretical estimate based on past performance.
The report underscores the financial stakes of divestment decisions and suggests that policymakers consider the potential impact on public services and taxpayers before adopting a BDS‑aligned investment policy.
