A new report is warning that New York City pension funds could lose more than $37 billion over the next decade if they adopt boycott and divestment policies targeting companies that do business with Israel.

According to a report released Wednesday by the Anti-Defamation League (ADL) and its affiliate JLens, divesting from major American corporations targeted by the Boycott, Divestment and Sanctions (BDS) movement could significantly reduce investment returns for New York City’s public pension system.

The report comes as New York City mayoral candidate Zohran Mamdani, a supporter of the BDS movement, could gain influence over the city’s pension funds through appointments to the boards that oversee them.

The analysis examined the performance of two hypothetical investment portfolios over a ten-year period. One portfolio included major U.S. companies targeted by the BDS movement, while the other excluded them.

Among the companies targeted by BDS are Alphabet (Google), Amazon, Microsoft, Boeing, Bank of America, Chevron, Cisco, Ford, IBM, Intel, McDonald’s, Meta, JPMorgan Chase, and ExxonMobil.

According to the report, the portfolio excluding those companies generated an annualized return of 11.7%, compared to 13.7% for the portfolio that included them.

Based on those figures, researchers estimated that New York City’s pension funds could lose approximately $37.5 billion in value over a ten-year period if similar divestment policies were implemented.

The findings were first reported by the New York Post.

The report also warned that any pension fund shortfalls would ultimately have to be covered by taxpayers through increased city contributions.

Researchers said lower investment returns could force the city to divert money away from education, public safety, and social services, or potentially raise taxes and fees to cover pension obligations.

ADL CEO Jonathan Greenblatt said the findings demonstrate that BDS-driven investment policies could carry serious financial consequences.

“While some in New York, including Mayor Mamdani, have publicly supported the BDS movement, an international campaign aimed at isolating and delegitimizing the world’s only Jewish state, this analysis highlights the potentially serious financial consequences of applying BDS-aligned divestment strategies to the city’s pension funds,” Greenblatt said.

New York City’s pension system consists of five major retirement funds covering teachers, city employees, police officers, firefighters, and education employees.

The report’s authors urged policymakers to avoid adopting BDS-related investment policies, arguing that such moves could harm both retirees and taxpayers while providing little financial benefit.

(YWN World Headquarters – NYC)