In the US, native governments and states typically use their very own budgets to buy funding automobiles. States are permitted to spend money on international bonds, supplementing international governments with public funds. One state specifically has invested tons of of thousands and thousands in Israeli struggle bonds—Florida.
Florida has probably the most Israeli struggle 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 International downgraded Israel’s sovereign score from A+ to A because of the ongoing conflicts and monetary deficits that have been anticipated to achieve 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 unfavorable outlook because of the struggle in March 2025. Now, Israel’s debt-to-GDP ratio is approaching 70% and companies are contemplating shifting to a “junk” score.
Quite a few Florida lawmakers went to work to make sure that the state would proceed supporting Israel by means of bond purchases. Earlier than I proceed, I have to that that one specific county specifically owns the vast majority of Israeli bonds—Palm Seaside County. Palm Seaside County owns over $700 million in Israeli bonds, composing 15% of its portfolio. Sure, the identical Palm Seaside County linked to Epstein, however that’s one other matter. Additionally, sure, the identical Palm Seaside County the place Mar-a-Lago is positioned.
Florida lawmakers, and Palm Seaside County officers specifically, lobbied closely and handed a brand new legislation that states Florida can’t discriminate towards international bonds. Taxpayers don’t have any say if their elected officers select to spend money on high-risk bonds for political causes over returns. Florida’s CS/CS/HB 669, titled “Israeli Bonds, was unanimously authorized by Republican and Democratic legislators in April and went into impact on July 1 after Governor Ron DeSantis signed it into legislation.
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 big monetary threat for purely political functions. The final verify and stability to guard taxpayers’ threat publicity was quietly eliminated, and Florida is constant to spend money on a extremely dangerous struggle bond with out regard for US residents.
