New York State Comptroller Tom DiNapoli is back under the ethics microscope over a February 2024 trip to Israel that critics say blurs the line between public duty and private influence. The visit, paid for by a local Jewish advocacy group, is drawing heat because DiNapoli continues to oversee sizable purchases of Israel bonds for the New York State Common Retirement Fund while locked in a competitive Democratic primary.
As reported by The Intercept, the Jewish Community Relations Council of New York coordinated DiNapoli’s itinerary and reimbursed expenses for the February trip. A letter from the state ethics commission signed off on the reimbursement but warned that the arrangement could still create an appearance of improper influence. According to The Intercept, the commission’s Feb. 2, 2024 correspondence put that caution in writing even as it allowed the payment.
Public comments and filings with the New York State Commission on Ethics and Lobbying in Government describe the Jewish Community Relations Council as a coordinator for more than 60 local Jewish organizations with financial ties to Israel Bonds. Critics say that web of relationships only sharpens the appearance problem. Those submissions call for the state to divest its Israel bond holdings and argue that the trip, followed by later bond purchases, may run afoul of state ethics rules.
Pension purchases and the math
The Office of the State Comptroller has reported that as of October 2023, the Common Retirement Fund held about $267.8 million in Israel bonds, according to a comptroller press release. Citing public records and statements, The Intercept reported that DiNapoli’s office has authorized roughly $120 million in additional Israel bond purchases since February 2024. Critics say that tally brought the fund’s exposure to roughly $332.5 million in Israel bonds.
Political pushback
DiNapoli’s Democratic primary opponents have not let the issue slide. Raj Goyle and Drew Warshaw have publicly pledged to divest New York’s Israel bond holdings if they win the office, according to reporting on the comptroller race. Advocacy groups and legal critics have joined in, urging a pause or full divestment and warning that these sovereign bonds carry legal, ethical and reputational risks for a public pension fund, as reported by national coverage of the controversy.
Legal and ethics questions
New York’s Public Officers Law bars public officials from conduct or acceptance of gifts that would create a substantial conflict with their duties or even the appearance of impropriety. The state ethics commission has authority to investigate and impose civil penalties. Those rules form the backbone of the complaints filed with the commission and underpin the cautionary language the panel used when it approved reimbursement for DiNapoli’s travel.
What happens next
The dispute is poised to hang over the final stretch of the Democratic primary for state comptroller on June 23, 2026, when voters decide who will oversee the state’s retirement fund. Unions, watchdogs and rank-and-file voters will be watching closely for any formal ethics findings, new disclosures or late campaign shifts as the primary clock winds down.
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