What are Israel Bonds, and why have they become a target for the BDS movement?

 

In recent weeks, activists have achieved major victories in getting states to divest from Israel Bonds. But what exactly are Israel Bonds, what role do they play in the Israeli occupation, and how are activists successfully mobilizing against them?

Last month, Florida Atlantic University (FAU) announced that it will invest an additional $5 million in Israel Bonds, making the school the largest Israeli bondholder among universities worldwide.

“This is a sound financial decision — but equally important, it is a statement of solidarity that reflects our vision for the future,” declared FAU president Adam Hasner in a press release. “As a leading university and a member of the South Florida community, we cannot ignore what is happening to Jewish students across the country, and we are proud of the steps we are taking to become the safest and most welcoming university for Jewish life in America.”

The announcement comes amid growing protests over the issue, as multiple states have divested from the bonds in recent weeks after pressure campaigns from activists.

What are Israel Bonds, what role do they play in the Israeli occupation, and how are activists successively fighting against them?

Israel Bonds are loans to the Israeli treasury that help sustain the country’s economy. In this economic arrangement, the U.S.-based Development Corporation for Israel (DCI) underwrites debt securities issued by the Israeli government.

The idea was devised by Israel’s first Prime Minister, David Ben-Gurion, when the country faced vast economic challenges.

Israel has consistently appealed to the U.S. Jewish population to invest in the bonds, particularly during times of turmoil in the region and Zionist military campaigns. Between October 7, 2023, and March 2024, Israel received more than $8 billion through Israel bonds.

The sale of Israel Bonds funnels money directly to the country’s economy, which entangles it with apartheid, illegal occupation, and genocide. According to their website, Israel Bonds “play an essential role in Israel’s economic resilience.”

“Breaking ties with Israel Bonds is a tangible, crucial act of solidarity with Palestinians,” declares a US Campaign for Palestinian Rights explainer on the issue.  (more...)

What are Israel Bonds, and why have they become a target for the BDS movement?