Israel Divestment Could Cost NYC Taxpayers $37 Billion, New ADL-JLens Analysis Finds
BDS movement targets major American companies like Amazon, Alphabet and Microsoft; ADL-JLens report estimates risk to NYC Pension Funds NEW YORK, June 10, 2026–(BUSINESS WIRE)–Israel divestment could put New York City taxpayers at risk for more than $37 billion over a decade, according to a new report released today by ADL (the Anti-Defamation League) and…
BDS movement targets major American companies like Amazon, Alphabet and Microsoft; ADL-JLens report estimates risk to NYC Pension Funds
NEW YORK, June 10, 2026–(BUSINESS WIRE)–Israel divestment could put New York City taxpayers at risk for more than $37 billion over a decade, according to a new report released today 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, titled “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 U.S. 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.
The analysis found an approximately two-percentage-point annualized performance gap, which, when compounded over time, could result in substantial differences in long-term returns. Applying that historical performance gap to the NYC pension funds’ estimated large-cap U.S. public equity allocations over a future 10-year period, the report estimates approximately $37.55 billion in potential forgone value.
“While some in New York, including Mayor Mamdani, have publicly supported the BDS movement, an international campaign aimed at isolating and delegitimizing the world’s only Jewish state, this analysis highlights the potentially serious financial consequences of applying BDS-aligned divestment strategies to the city’s pension funds,” said Jonathan Greenblatt, ADL CEO and National Director. “This 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 NYC pension analysis builds on JLens’ 2024 research on university endowments, which found that a BDS-aligned strategy applied to the 100 largest endowments could result in $33 billion in forgone gains over a decade.
“The BDS movement has migrated from college campuses to city halls as universities have become less hospitable to anti-Israel activism. But the investment math doesn’t change with the venue,” said Ari Hoffnung, JLens Managing Director, ADL Senior Advisor on Corporate Advocacy, and former NYC Deputy Comptroller. “Our 2024 research showed that BDS-aligned strategies could cost university endowments $33 billion; this analysis shows that if our assumptions prove true they could cost NYC pension funds more than $37 billion. Whether the target is a university endowment or a public pension fund, the financial consequences will be real — and they will fall on the people these institutions serve: from students and faculty to teachers, police officers, and firefighters.”
The report’s methodology was reviewed by leading legal and financial experts, including Joshua Mitts, the David J. Greenwald Professor of Law at Columbia University.
“The findings are economically intuitive. Excluding a significant share of large-cap companies from a broad, market-cap-weighted index changes a portfolio’s exposure and can affect long-term performance,” said Mitts. “The methodology used here is consistent with standard financial practice for evaluating exclusionary strategies. For long-horizon investors such as pension funds, understanding the potential financial implications of such constraints is an important component of portfolio analysis.”
The full report details projections for each of the five NYC pension funds, which together constitute the fourth largest public pension system in the U.S. If the funds, which collectively manage over $300 billion in assets, were to adopt BDS-aligned divestment strategies from 2025 to 2035, the research estimates the following potential losses:
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 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.
About ADL
ADL is the leading anti-hate organization in the world. Founded in 1913 to protect the Jewish people, ADL works to stop the defamation of the Jewish people and secure justice and fair treatment to all. In the face of rising antisemitism, we protect, advocate, and educate, through a mix of programs and services using the latest innovations and technology, and seek to create a world without hate. More at www.adl.org.
About JLens
Founded in 2012, JLens is a 501(c)(3) nonprofit and Registered Investment Advisor that empowers investors to align their capital with Jewish values and advocates for Jewish communal priorities in the corporate arena. JLens’ Jewish Investor Network is composed of 40 Jewish institutions, representing $15 billion in communal capital. In 2022, JLens established an affiliation with ADL (the Anti-Defamation League), the leading anti-hate organization in the world. More at www.jlensnetwork.org.
Disclosures
This material is provided for informational and educational purposes to contribute to public policy and shareholder advocacy discussions. It does not constitute investment advice, a recommendation, or an offer to buy or sell any security or to adopt any investment strategy.
JLens is a nonprofit organization and SEC-registered investment adviser that engages in shareholder advocacy and research. This material is not intended to provide advice to any governmental entity, pension plan, or other investor, and should not be relied upon for investment decision-making.
The analysis presented is based on historical data and includes hypothetical, model-based comparisons of portfolios. It is intended solely to illustrate potential outcomes under the scenarios described and does not reflect the performance of any actual portfolio or client account. Hypothetical results have inherent limitations and depend on the assumptions, data, and methodologies used. Different assumptions or methodologies may produce materially different results.
This material includes forward-looking statements and illustrative projections based on those assumptions. Such statements are subject to uncertainty and are not intended as predictions of future results. There can be no assurance that any estimates or projections will be realized.
The analysis relies on publicly available information and selected criteria, including the identification of certain companies and the choice of index comparisons. Different selections could produce materially different results. JLens does not undertake to update this information.
Certain external experts referenced in connection with the analysis were compensated for their time. Their views are their own, and their review was limited to the methodology and analytical approach described.
The views expressed are those of JLens as of the date of publication, are subject to change, and reflect values-based advocacy positions. These positions are not intended as predictions of the performance of any actual portfolio or account.
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Contacts
Media Contacts:
JLens Dukas Linden Public Relations JLens@dlpr.com
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