Divesting from Israel could cost NYC over $37 billion in taxpayer losses
Israel divestment could put New York City taxpayers at risk for more than $37 billion over a decade, according to a new report released Wednesday by ADL (the Anti-Defamation League) and its affiliate JLens examining the potential impact of BDS-aligned investment restrictions on the city’s pension funds.
The report, “The Impact of Israel Divestment on the New York City Pension Funds: Estimating BDS’s Financial Toll on New York City Employees, Retirees and Beneficiaries,” was prepared by JLens with review and input from subject matter experts.
The analysis compared the 10-year historical performance of two hypothetical large-cap US equity portfolios: one broadly diversified and one excluding 47 major American companies targeted by the Boycott, Divestment, and Sanctions (BDS) movement for doing business in Israel, including Alphabet, Amazon, and Microsoft.
It found an approximately two-percentage-point annualized performance gap which, when compounded, could result in substantial differences in long-term returns. Applying that gap to NYC pension funds’ estimated large-cap US public equity allocations over a future decade, the report estimates approximately $37.55 billion in forgone value.
ADL CEO and National Director Jonathan Greenblatt said the findings highlight the potentially serious financial consequences of BDS-aligned divestment strategies, while JLens Managing Director and former NYC Deputy Comptroller Ari Hoffnung said similar research in 2024 found such strategies could cost the 100 largest university endowments $33 billion over a decade.
The methodology was reviewed by legal and financial experts, including Columbia Law professor Joshua Mitts, who said it is consistent with standard financial practice for evaluating exclusionary strategies.
The report estimates potential losses from 2025 to 2035:
* Teachers’ Retirement System (TRS): $15.09 billion
* New York City Employees’ Retirement System (NYCERS): $10.91 billion
* Police Pension Fund (POLICE): $7.13 billion
* Fire Pension Fund (FIRE): $3.02 billion
* Board of Education Retirement System (BERS): $1.41 billion
Total: approximately $37.54 billion
“The BDS movement, many of whose founding goals are antisemitic, seeks to isolate Israel on multiple fronts: diplomatic, financial, professional, academic, and cultural,” ADL stressed.
“ADL believes the movement’s ultimate goal is to delegitimize the Jewish state by maliciously targeting Israel, its institutions, and its supporters, including Jewish individuals and community organizations.”
