In america, native governments and states usually use their very own budgets to buy funding autos. States are permitted to spend money on overseas bonds, supplementing overseas governments with public funds. One state particularly has invested tons of of tens of millions in Israeli warfare bonds—Florida.
Florida has essentially the most Israeli warfare bonds within the nation at $950 million. The Florida State Treasury below 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 had been anticipated to succeed in 9% of GDP in 2024 on the time. Moody’s downgraded its long-term native and foreign-currency issuer rankings from A2 to Baa1. Fitch Rankings maintained Israel’s A score however cited a damaging outlook because of the warfare in March 2025. Now, Israel’s debt-to-GDP ratio is approaching 70% and companies 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 by means of bond purchases. Earlier than I proceed, I need to that that one explicit county particularly 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 situated.
Florida lawmakers, and Palm Seaside County officers particularly, lobbied closely and passed a new law that states Florida can’t discriminate in opposition to overseas 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 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 big monetary danger for purely political functions. The final verify and steadiness to guard taxpayers’ danger publicity was quietly eliminated, and Florida is constant to spend money on a extremely dangerous warfare bond with out regard for US residents.