Miami-Dade county in Florida raises the limit on investments in Israel bonds

In addition to raising the investment cap from 3% to 5%, the resolution would also reduce the maturity of “bonds backed by the full faith and credit of the state of Israel” from five to three years. 

By Sharon Udasin, JTA

The Miami-Dade region in Florida can spend millions more tax dollars on Israel, after officials increased the share of county investments that can include Israeli bonds.

The Board of County Commissioners approved a resolution last week toward the start of a seven-hour meeting, in a unanimous, single vote that grouped together numerous ordinances.

This action enables the county to invest up to 5%, rather than 3%, of its $9 billion in investments in these bonds—debt issued by the Israeli government sold by a U.S. underwriter.

Despite the previous cap of 3%, Israeli bonds only make up about 1.48% of Miami-Dade’s portfolio, or roughly $130 million, according to the county’s third-quarter investment report.

Known as “Israel Bonds,” these loans are deeply rooted in the Diaspora’s relationship with the country.

Israel, like many countries, raises money by selling bonds to investors, who then receive repayments with interest after a specified time period.

But for American Jews, these bonds are issued via the U.S.-based Development Corporation for Israel, which has served as the underwriter since 1951.

As for Miami-Dade, the county began purchasing Israeli bonds in 2016. But these investments increased substantially just after Hamas’ Oct. 7, 2023, attacks on Israel.

At the time, Miami-Dade Mayor Daniella Levine Cava announced that the county would be boosting these investments from $51 million to $76 million.

Palm Beach County made a similar decision at the time, as did cities, counties, and states around the country.

Nonetheless, activists nationwide have increasingly been pushing governments to stop investing in Israel bonds, citing the Jewish state’s military operations in Gaza.

An initiative called “Break the Bonds,” launched by the progressive Jewish Voice for Peace group, claims that “the Israeli military is committing a genocide of Palestinians in Gaza” and that community investments in such bonds are enabling the situation.

“At a time when so many people in our community are struggling, we believe our public dollars should be invested in our communities and in meeting the needs of the people who live here,” JVP South Florida said in a statement prior to last Tuesday’s vote.

Israel Bonds representatives did not reply to repeated requests for comment.

Given the resolution’s swift passage, which occurred without a public hearing at the board meeting, detractors signed up to testify about an unrelated item in order to voice their concerns.

“My tax dollars should be kept safe and should be working to benefit my community,” Coconut Grove resident Jared Simon, who identified himself as Jewish, told the commissioners.

“You didn’t even allow public comment on it before voting,” he said. “Your constituents do not want their tax dollars funding the functions of the Israeli government.”

Addressing the lack of public hearing, the commissioners responded that residents already had the opportunity to speak about the resolution during a session earlier this summer.

That session occurred on July 15, when the Intergovernmental and Economic Impact Committee advanced the rule to the Board of County Commissioners with a favorable recommendation.

Among the most prominent speakers to take the podium — even though he had apparently not registered to do so — was James Fishback, a far-right former gubernatorial candidate and sharp critic of Israel.

Alleging that the commissioners “unanimously voted to give up to $450 million of money to Israel,” Fishback said he’d rather not be “escorted out by these great men in uniform.”

“Do you serve the people of Hialeah or of Haifa? Do you serve the people of Aventura or of Tel Aviv?” he asked the commissioners.

“Do you serve the people of South Miami or of Jerusalem? This money should be invested here in this community.”

As the sergeants escorted Fishback out of the auditorium, another individual screamed “America First!” from the audience.

Oliver Gilbert, one of the commissioners, responded that the “board today didn’t vote to give any money to anyone,” stressing that they just “set investment criteria.”

Before Tuesday’s meeting reached its most heated point, Keon Hardemon, another commissioner, told the audience that he and his colleagues “don’t care what you’re talking about, what subject it is that you don’t like, what you care for, what you don’t care for, or what your politics are.”

“What we are not going to stand for are people who want to make anyone in this room feel uncomfortable,” Hardemon added.

Yet immediately after this intervention, public outcry over the resolution, known as 11A2, continued.

Miami resident Mina Trachtenberg argued that county investment policies require the prioritization “of public funds and liquidity of public funds above all else.”

“The resolution passed today achieves the opposite of that, opening the door to the purchase of high-risk, even junk-quality bonds of a foreign entity,” Trachtenberg said. “Please divest from apartheid.”

Anthony Rodriguez, the chairman of the Board of County Commissioners, eventually instructed the sergeants in the room to eject anyone who refused to comply with the rules.

Just after those instructions, Miami resident Mohammed Mohammed came to the podium, voicing his alarm that he was “going to be escorted out just for being Palestinian.”

“That’s not the case. Let’s not put words in anybody’s mouth,” a visibly frustrated Rodriguez responded. “You just have to follow the order and speak on the item.”

Mohammed then declared “that 11A2 is an absolute disgrace,” leading Rodriguez to summon the sergeants and declare that the speakers just “want their minute of fame.”

The rule’s sponsor, commissioner René García, explained that the county invests about $9 billion, with the intention of generating “a greater return of money” to fund public needs.

García, a former Republican state senator, explained that the rule simply ensures “more flexibility and more liquidity” for certain investments.

In addition to raising the investment cap from 3% to 5%, the resolution would also reduce the maturity of “bonds backed by the full faith and credit of the state of Israel” from five to three years.

Within that text, the authors also deleted a clause that previously had required Israel to have an “A” credit rating from at least two agencies.

That revision stemmed from a recent Florida statute allowing investments in Israel bonds regardless of the country’s rating.

This change was particularly noteworthy because credit ratings of Israel have fluctuated in the past few years.