(José Niño, Headline USA) The Arkansas state government has thrown its weight behind Israel, investing millions and reinforcing a growing trend among U.S. states.
Gov. Sarah Huckabee Sanders, R-AR, announced a plan to invest up to $50 million in Israel Bonds in the middle of May. According to the Arkansas Democrat Gazette, the Arkansas Public Employees Retirement System (APERS) trustees agreed to allocate between $25 million and $50 million of state funds into Israel Bonds.
This marks one of the largest single investments by the state in these securities, which are debt instruments issued by the Israeli government to raise capital for its national development.
The investment is part of a broader policy, established in Arkansas in 2017, that allows and encourages state funds to be invested in Israel Bonds.
Israel Bonds are fixed-income securities backed by the full faith and credit of the State of Israel. They have been sold in the U.S. since 1951. The bonds are often purchased by institutional investors, including state and municipal pension funds, as well as individuals seeking both financial returns and a symbolic connection to Israel.
Arkansas is not alone in this approach. In recent years, especially following the Oct. 7, 2023, Hamas attacks and the subsequent Israel-Hamas war, multiple U.S. states have dramatically increased their investments in Israel Bonds, often citing both financial prudence and political solidarity.
Florida’s Treasury has been particularly active, with Chief Financial Officer Jimmy Patronis announcing an additional $120 million investment in October 2023, bringing the state’s total holdings to $200 million. Since 2017, Florida has purchased $310 million in Israel Bonds, generating over $6.4 million in interest for the state.
Patronis stated, “Israel bonds are a prudent use of state funds and offer a consistently positive return on investment. As we’ve seen throughout history, Democracy and freedom are fragile, and Florida proudly stands with Israel, the only democratic nation in the Middle East.”
The New York State Common Retirement Fund has been a long-term investor in Israel Bonds, with a recent $20 million purchase in October 2023 raising its total holdings to $267.8 million. Comptroller Thomas DiNapoli emphasized both the financial and symbolic value:
“In addition to providing a steady return for our pension fund’s members, Israel bonds help support one of our nation’s strongest allies. I am heartened that so many other public funds have stepped forward to purchase bonds and support Israel, the only democratic government in the region, during these tragic and challenging days.”
Ohio is another major player, with the state treasury holding $262.5 million in Israel Bonds as of early 2024. Ohio Treasurer Robert Sprague described the practice as a “sound investment” for the Ohio Treasurer’s Office, with a record of competitive rates and reliable repayments.”
Ohio has a long history with Israel Bonds, with every state treasurer since 1993 making such investments.
Texas has invested in Israel Bonds annually since 1994, and after a $20 million purchase in October 2023, the state’s total holdings neared $100 million.
Texas Comptroller Glenn Hegar described the bonds as “a key component of our investment portfolio at the state’s treasury, providing a reliable return for the people of Texas.”
Arkansas’s investment in Israel Bonds is part of a larger, bipartisan trend among U.S. states to support Israel financially while seeking stable returns for public funds.
José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino
