Florida is on the verge of passing a law that would allow local governments to invest freely in Israeli government bonds—even as concerns mount over the country’s financial stability. Governor Ron DeSantis has pledged to sign the measure, which sailed through the state legislature without opposition and would make Israel the only foreign nation granted special treatment for public investments at the local level.
The driving force behind the initiative is Palm Beach County, Florida’s wealthiest jurisdiction and the de facto winter headquarters of Donald Trump. For county treasurer Joseph Abruzzo, support for Israel has become a deeply personal mission. In just two years, Abruzzo has increased Palm Beach’s holdings in Israeli bonds more than tenfold, with investments now exceeding $700 million—more than any other local government in the world.
The legislation is designed, in effect, to shield these investments from potential legal or regulatory challenges. The problem? Israel’s credit rating has recently been downgraded by leading agencies, citing heightened default risks due to the ongoing war with Hamas and domestic unrest. Under existing rules, counties like Palm Beach would be barred from acquiring such securities. The new law would nullify those restrictions.
Abruzzo has called the bill “an act of friendship toward our greatest ally”. While he initially acknowledged the move as a political gesture, he now frames it as a “strategic choice.” But the push is not entirely homegrown. Behind the scenes is Israel Bonds, a state-run enterprise tasked with selling Israeli securities in the U.S. The organization has been linked to a coordinated campaign involving travel junkets, exclusive events, and lobbying efforts aimed at local officials.
Not everyone is applauding. A group of Palm Beach residents has filed a lawsuit, arguing that the county’s investments violate Florida laws prohibiting the use of public funds for ideological purposes. Though the case was dismissed on procedural grounds, attorneys plan to refile this fall. Among the plaintiffs are American citizens of Palestinian descent, some of whom lost family members in Israeli airstrikes on Gaza.
Florida is not alone. Since the Hamas attacks of October 7, states like Arkansas, Ohio, and New York have increased their financial commitments to Israel. But none approach Palm Beach’s scale. The Florida bill could become a blueprint for others to follow, potentially channeling vast amounts of public money into a conflict zone—with few safeguards and little oversight.
As one University of Chicago scholar put it: “We’ve never seen a local government go this far in backing a foreign nation at war—especially when it means gambling with taxpayer savings in the name of geopolitical loyalty”.
