In the US, native governments and states typically use their very own budgets to buy funding automobiles. States are permitted to put money into overseas bonds, supplementing overseas governments with public funds. One state specifically has invested a whole lot of thousands and thousands in Israeli struggle bonds—Florida.
Florida has probably the most Israeli struggle bonds within the nation at $950 million. The Florida State Treasury below CFO Jimmy Patronis invested $250 million in Israeli bonds as of March 2024, buying $120 million extra in late 2023, adopted by one other $50 million buy in early 2024. The funding in Israeli bonds continues to develop regardless of the bond ranking dropping.
In October 2024, S&P International downgraded Israel’s sovereign ranking from A+ to A as a result of ongoing conflicts and financial deficits that have been anticipated to achieve 9% of GDP in 2024 on the time. Moody’s downgraded its long-term native and foreign-currency issuer rankings from A2 to Baa1. Fitch Scores maintained Israel’s A ranking however cited a destructive outlook as a result of struggle in March 2025. Now, Israel’s debt-to-GDP ratio is approaching 70% and businesses are contemplating transferring to a “junk” ranking.
Quite a few Florida lawmakers went to work to make sure that the state would proceed supporting Israel by means of bond purchases. Earlier than I proceed, I have to that that one specific county specifically owns nearly all of Israeli bonds—Palm Seaside County. Palm Seaside County owns over $700 million in Israeli bonds, composing 15% of its portfolio. Sure, the identical Palm Seaside County linked to Epstein, however that’s one other matter. Additionally, sure, the identical Palm Seaside County the place Mar-a-Lago is situated.
Florida lawmakers, and Palm Seaside County officers specifically, lobbied closely and passed a new law that states Florida can’t discriminate towards overseas bonds. Taxpayers don’t have any say if their elected officers select to put money into high-risk bonds for political causes over returns. Florida’s CS/CS/HB 669, titled “Israeli Bonds, was unanimously authorized by Republican and Democratic legislators in April and went into impact on July 1 after Governor Ron DeSantis signed it into legislation.
So, no matter credit standing, Florida will proceed investing in Israeli bonds as there is no such thing as a minimal ranking requirement. Legislators are exposing the state to a major monetary danger for purely political functions. The final verify and stability to guard taxpayers’ danger publicity was quietly eliminated, and Florida is constant to put money into a extremely dangerous struggle bond with out regard for US residents.
