In america, native governments and states usually use their very own budgets to buy funding automobiles. States are permitted to spend money on overseas bonds, supplementing overseas governments with public funds. One state specifically has invested lots of of hundreds of thousands in Israeli struggle bonds—Florida.
Florida has essentially 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 score dropping.
In October 2024, S&P World downgraded Israel’s sovereign score from A+ to A as a result of ongoing conflicts and financial deficits that have been anticipated to succeed in 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 score however cited a unfavorable outlook as a result of struggle in March 2025. Now, Israel’s debt-to-GDP ratio is approaching 70% and companies are contemplating transferring to a “junk” score.
Quite a few Florida lawmakers went to work to make sure that the state would proceed supporting Israel by bond purchases. Earlier than I proceed, I need to that that one specific county specifically owns nearly all of Israeli bonds—Palm Seashore County. Palm Seashore County owns over $700 million in Israeli bonds, composing 15% of its portfolio. Sure, the identical Palm Seashore County linked to Epstein, however that’s one other matter. Additionally, sure, the identical Palm Seashore County the place Mar-a-Lago is positioned.
Florida lawmakers, and Palm Seashore County officers specifically, lobbied closely and handed a brand new legislation that states Florida can’t discriminate in opposition to overseas bonds. Taxpayers don’t have any say if their elected officers select to spend money on high-risk bonds for political causes over returns. Florida’s CS/CS/HB 669, titled “Israeli Bonds, was unanimously accepted 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 score requirement. Legislators are exposing the state to a big monetary danger for purely political functions. The final examine and stability to guard taxpayers’ danger publicity was quietly eliminated, and Florida is continuous to spend money on a extremely dangerous struggle bond with out regard for US residents.
