Investments in Israel Bonds unacceptable

Over the past year and a half, Israel’s assault on Gaza has devastated the Palestinian population. Tens of thousands have been officially reported killed and starved, an overwhelming majority of them women and children. In May 2024, the International Criminal Court issued an arrest warrant for Israeli Prime Minister Benjamin Netanyahu, citing alleged war crimes and crimes against humanity.

With the use of state taxpayer funds, Illinois State Treasurer Michael Frerichs has brought Illinois’ total investments in Israel Bonds over $145 million. These transactions make Illinois one of the top U.S. state-level investors in Israel Bonds.

These state investments aren’t just morally indefensible — they’re financially reckless. In the past year, U.S. credit agencies have downgraded Israel Bonds twice as Israel faces international sanctions and instability. In September 2024, Moody’s warned that Israel’s bonds were at risk of slipping into “junk” status.

Illinois is home to the largest Palestinian community in this country — people whose tax dollars are invested in violence against their own family and friends. Just this past April, children from Gaza arrived at O’Hare Airport seeking medical care. Many of these children had lost limbs or parents because of the violence funded by Illinois’ investments. Illinois taxpayers have had enough.

On June 20, a broad coalition of community, labor and faith organizations convened at the quarterly meeting for the Illinois State Board of Investment (ISBI), for which Treasurer Frerichs is the vice-chair, to demand divestment from Israel Bonds and companies supporting the violence. Some protesters were on their fifth day of a hunger strike.

On many issues — criminal justice reform, workers’ rights, civil rights — Illinois is a leader in the nation for progressive reform. The State Treasurer and ISBI have the chance to set that same standard with respect to investments in companies escalating armed conflict.

Bryan Maxwell

Pottstown