Providence City Council introduces ordinance to stop investment in Israel

PROVIDENCE, R.I. (WLNE) — The Providence City Council heard an ordinance Thursday that would divest city funds from Israel sovereign bonds and prevent future investments in governments accused of war crimes and human rights violations.

The ordinance was introduced by Council President Rachel Miller, Councilor Justin Roias, and Councilor Miguel Sanchez, who cited the council’s 2006 order divest from companies that conducted business in Sudan after the genocide perpetrated in Darfur.

The proposal would prevent city assets from being invested or reinvested in bonds of governments maintaining a prolonged military occupation that have been the subject of United Nations Security Council resolutions and/or International Court of Justice rulings.

The city treasurer would also need to review the any investments that would violate the ordinance.

“Our investments are a reflection of our values,” Sanchez said. “Upholding the values of peace, freedom, and justice means not contributing to a war that has taken the lives of 15,000 children.”

Jewish Voice for Peace Rhode Island voiced support for the ordinance, saying the bonds go “directly to the Israeli treasury, providing unrestricted funding going towards general operating funds for the Israeli military and government.”

“As Jews of conscience, we don’t think that our city should be loaning public funds to the Israeli military and government with no guardrails or restrictions to ensure our community isn’t inadvertently supporting violations of international law and violence against Palestinians,” JVP member Johanna Vollhardt said.

Mayor Brett Smiley said he would veto the ordinance if it was passed:

I am deeply concerned and disappointed in the City Council’s proposed divestment ordinance that reeks of antisemitism. The ordinance is divisive and polarizing and will only make members of our Jewish community feel further isolated and targeted. I have worked hard to ensure our local Jewish community feels safe and welcomed and share the R.I. Jewish Alliance’s strong concerns about the language and misguided purpose of this ordinance. Currently, the City of Providence has no direct investments in State of Israel Bonds. Within the pension portfolio of approximately $430 million, the city holds a passive index fund valued at $7.5 million that holds a wide range of international bonds from a multitude of countries and as of this year only 0.4% of that investment is in State of Israel Bonds, totaling only $29,940. An ordinance requiring the divestment of a bond of this size is unproductive, ineffective and possibly violates state law. I am strongly opposed to this ordinance and if passed, intend to veto it.

Meanwhile, the Rhode Island Coalition for Israel criticized the ordinance, saying it was “antisemitic” and “fiscally reckless.”

Israel Bonds also released the following statement:

We are proud of our longstanding relationship with Providence, which has invested in Israel Bonds for over 20 years. This investment has provided residents with reliable and strong returns. Prohibiting future investments would be detrimental to the residents of Providence.