In the USA, native governments and states usually use their very own budgets to buy funding autos. States are permitted to put money into international bonds, supplementing international governments with public funds. One state particularly has invested lots of of hundreds of thousands in Israeli battle bonds—Florida.
Florida has essentially the most Israeli battle bonds within the nation at $950 million. The Florida State Treasury beneath 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 because of the 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 scores from A2 to Baa1. Fitch Rankings maintained Israel’s A score however cited a destructive outlook because of the battle in March 2025. Now, Israel’s debt-to-GDP ratio is approaching 70% and businesses 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 via bond purchases. Earlier than I proceed, I need to that that one explicit county particularly 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 particularly, lobbied closely and passed a new law that states Florida can not discriminate in opposition to international 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 accepted by Republican and Democratic legislators in April and went into impact on July 1 after Governor Ron DeSantis signed it into regulation.
So, no matter credit standing, Florida will proceed investing in Israeli bonds as there isn’t a minimal score requirement. Legislators are exposing the state to a major monetary threat for purely political functions. The final verify and steadiness to guard taxpayers’ threat publicity was quietly eliminated, and Florida is continuous to put money into a extremely dangerous battle bond with out regard for US residents.
