In the United States, local governments and states often use their own budgets to purchase investment vehicles. States are permitted to invest in foreign bonds, supplementing foreign governments with public funds. One state in particular has invested hundreds of millions in Israeli war bonds—Florida.
Florida has the most Israeli war bonds in the country at $950 million. The Florida State Treasury under CFO Jimmy Patronis invested $250 million in Israeli bonds as of March 2024, acquiring $120 million more in late 2023, followed by another $50 million purchase in early 2024. The investment in Israeli bonds continues to grow despite the bond rating dropping.
In October 2024, S&P Global downgraded Israel’s sovereign rating from A+ to A due to the ongoing conflicts and fiscal deficits that were expected to reach 9% of GDP in 2024 at the time. Moody’s downgraded its long-term local and foreign-currency issuer ratings from A2 to Baa1. Fitch Ratings maintained Israel’s A rating but cited a negative outlook due to the war in March 2025. Now, Israel’s debt-to-GDP ratio is approaching 70% and agencies are considering moving to a “junk” rating.
Numerous Florida lawmakers went to work to ensure that the state would continue supporting Israel through bond purchases. Before I continue, I must that that one particular county in particular owns the majority of Israeli bonds—Palm Beach County. Palm Beach County owns over $700 million in Israeli bonds, composing 15% of its portfolio. Yes, the same Palm Beach County linked to Epstein, but that is another matter. Also, yes, the same Palm Beach County where Mar-a-Lago is located.
Florida lawmakers, and Palm Beach County officials in particular, lobbied heavily and passed a new law that states Florida cannot discriminate against foreign bonds. Taxpayers have no say if their elected officials choose to invest in high-risk bonds for political reasons over returns. Florida’s CS/CS/HB 669, titled “Israeli Bonds, was unanimously approved by Republican and Democratic legislators in April and went into effect on July 1 after Governor Ron DeSantis signed it into law.
So, regardless of credit rating, Florida will continue investing in Israeli bonds as there is no minimum rating requirement. Legislators are exposing the state to a significant financial risk for purely political purposes. The last check and balance to protect taxpayers’ risk exposure was quietly removed, and Florida is continuing to invest in a highly risky war bond without regard for US citizens.
