For decades, Israel has relied on a quiet, almost invisible pipeline of U.S. money: state‑level investments in Israeli bonds. These aren’t federal appropriations debated on the House floor. They’re decisions made by state treasurers, pension boards, and investment committees — often without public hearings, without media coverage, and without any democratic consent from the people whose tax dollars are being used.
Illinois is one of the clearest examples of how this works — and how it can be challenged.
Illinois: A Case Study in Divestment and Resistance
In Illinois, organizers from the Anti‑War Committee – Chicago and the U.S. Palestinian Community Network/BDS Chicago uncovered millions of dollars quietly funneled into Israeli bonds through the state’s investment portfolio. They were direct purchases of Israel Bonds — financial instruments that go straight into the Israeli treasury.
Through sustained pressure, public education, and direct confrontation with the Illinois Treasurer’s Office, the coalition forced the state to divest millions. But divestment is not a one‑time victory. Israeli bonds mature, expire, and can be renewed unless communities stay vigilant.
Illinois still holds Israeli bonds today. And Illinois is only one state.
The Other 49 States: A National Financial Pipeline
Every U.S. state has the legal authority to purchase Israeli bonds. Only 35 states actually report they do, but likely all 50 states participate. Some have done so for decades. Others began after 9/11, when Israel Bonds aggressively marketed themselves as “stable, patriotic investments.”
Below is a breakdown of what is publicly known from state treasurer disclosures, pension fund reports, and Israel Bonds’ own promotional materials
States with Documented Israeli Bond Purchases (Recent or Historical)
California – Historically one of the largest purchasers; state agencies and municipalities have bought over $2 billion cumulatively since the 1970s.
New York – Another major buyer; cumulative purchases exceed $1.5 billion.
Florida – Over $1 billion purchased by state and municipal funds.
Texas – Hundreds of millions purchased through state pensions and local governments.
Ohio – Regular purchaser; tens of millions annually.
New Jersey – Over $300 million historically.
Pennsylvania – State pensions have repeatedly bought Israeli bonds.
Maryland – Long history of purchases.
Virginia – State retirement systems have invested for decades.
Massachusetts – Multiple pension funds have purchased Israeli bonds.
Illinois – Tens of millions historically; millions recently divested.
Minnesota, Colorado, Georgia, Michigan, Missouri, Connecticut, North Carolina, South Carolina, Kentucky, Tennessee, Indiana, Wisconsin, Arizona, Washington, Oregon, Nevada, New Mexico, Kansas, Nebraska, Utah – All have documented purchases at various points.
States with No Publicly Documented Purchases
Alaska, Hawaii, Idaho, Montana, Wyoming, North Dakota, South Dakota, Arkansas, Louisiana, Mississippi, Alabama, Oklahoma, West Virginia, Delaware, Vermont, New Hampshire, Maine, Rhode Island
Many of these states have smaller pension systems or less transparent reporting.
Disclaimer on Transparency and Hidden Investments
The numbers listed above are only what is publicly visible. Many states do not provide full transparency, and some investments may be buried inside complex financial statements, bundled through third‑party investment firms, or reported under vague categories that hide the true nature of the purchase.
It is likely that the real total is higher than what public records show. The lack of transparency is part of the problem, and part of the reason communities must demand full disclosure from their state treasurers and pension boards.
Approximate National Total: How Much Money Does Israel Receive From U.S. States?
Israel Bonds themselves publicly claim that U.S. state and municipal governments have purchased over $5 billion in Israeli bonds since the program began.
But that number is outdated.
Based on cumulative disclosures, state treasurer reports, and Israel Bonds’ own promotional statements:
A realistic estimate is that U.S. states currently hold between $2.5 billion and $3.5 billion in active Israeli bonds.
And historically, the total amount purchased by states and municipalities is likely:
$6 billion to $7 billion in cumulative state-level investment. (What's reported)
This is state money — not federal aid.
This is pension money — workers’ retirement funds.
This is public money — taken from taxpayers without their consent.
And unlike federal aid, which is debated publicly, Israeli bonds are purchased quietly, often buried in investment reports that no one reads.
Why These Bonds Matter
When a state buys an Israeli bond, the money goes directly to the Israeli Ministry of Finance. It is not earmarked. It is not restricted. It is not monitored.
It becomes part of the same budget that funds:
settlement expansion
military operations
surveillance systems
weapons procurement
home demolitions
land seizures
the apartheid infrastructure across the West Bank and Gaza
This is why organizers in Illinois call Israeli bonds “the hidden pipeline.”
Weapons Manufacturers and Tech Firms: The Second Layer
Many states also invest in corporations deeply tied to Israeli occupation:
Lockheed Martin – supplies F‑35 jets used in Gaza
Boeing – provides bombs and missile systems
Northrop Grumman – drone systems and targeting tech
Elbit Systems – surveillance towers and border militarization
Palantir – predictive policing and mass surveillance used on Palestinians
These investments are separate from Israeli bonds — but they reinforce the same system.
Why Divestment Matters Now
State-level divestment is one of the few pressure points ordinary people can influence. You don’t need Congress. You don’t need the White House. You need:
your state treasurer
your pension board
your city council
your county comptroller
These are accessible targets. They are vulnerable to public pressure. And they often have no idea what they’re actually funding.
Illinois proved that divestment is possible.
Now the rest of the country needs to follow.
We need to be aware about what this money does. Every dollar that a state pours into Israeli bonds is a dollar that fuels displacement. It fuels the land theft in the West Bank. It fuels the destruction of Gaza. It fuels the mass killings. It fuels the genocide. It fuels the rape and torture in the prison dungeons. And if we want it to stop, we have to be the ones who stand up and demand that our states stop financing apartheid. No one else is going to do it for us.
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📽️ Credit: Sovereign Media
