A group of Palestinian Americans is suing Palm Beach County, Florida, over its decision to invest more than $700 million in Israeli bonds to support the war effort in Gaza. This investment has made the county the largest purchaser of Israeli bonds worldwide since October 7.
The plaintiffs accuse Joseph Abruzzo, the county's investment supervisor, of allocating 15% of their investment funds to Israel while ignoring financial warnings about the country's ability to repay its debts.
According to the lawsuit, Abruzzo was "driven by his pro-Israel politics, violating state and county laws that require officials to avoid risky investments and manage public funds without ideological considerations."
The Palestinian-Americans leading the lawsuit have requested anonymity, fearing harassment against them or their families in Gaza. One plaintiff stated that he 37 of family members were killed in the Gaza war and, according to the lawsuit, "suffered from symptoms of PTSD, anxiety and depression, knowing that his county tax dollars are significantly contributing to the ongoing genocide in Gaza and endangering his family members."
The lawsuit cites media reports in which urban finance experts noted that such a high concentration of taxpayer money in one type of investment is highly unusual and potentially dangerous.
Abruzzo dismissed the allegations, asserting that investing in Israel Bonds is not only legal but also financially sound, generating $172 million in interest payments for the county. "Although we have not yet received the lawsuit, we expect this ridiculous case to be dismissed quickly. Palm Beach County has a strong and diverse investment portfolio designed to protect taxpayers' investments," he said in a statement to the press.
"The investments are subject to county policies and Florida laws," he added. "The county's investment in Israel Bonds will yield significant returns for Palm Beach County while safeguarding taxpayers' money. Our office has a proven track record of providing substantial investment returns to residents, including a record $172 million in investment income for taxpayers in the 2023 fiscal year."
Israel Bonds have traditionally been sold to Jews in the diaspora as a way to support Israel, but in recent years, the market has expanded, with major financial institutions becoming key buyers. Since October 7, Israel Bonds, the government body issuing the bonds, has sold over $3 billion in bonds, three times the annual amount in recent years. Many investors have stated they are doing so to show solidarity with Israel during the war.