Since 2020, states and municipalities across the country have amassed a portfolio of $1.7 billion in Israel Bonds—securities sold by the state of Israel to “strengthen every aspect of Israel’s economy, enabling national infrastructure development.” Since October 7th, 2023, $580 million of state and municipal investments have been invested in Israeli bonds.

In some cases, the state treasurers and comptrollers that purchased Israeli bonds are the very same officials who pushed for laws in their states against investing in firms that embrace environmental social governance (ESG), or investments based, at least superficially, on diversity, climate change, or any other criteria they deem “woke.” Their argument: If a firm makes politically motivated investment decisions in accordance with ESG, then the firm has compromised its fiduciary duty to be a good steward of dollars and maximize returns for investors.