The ordinance would only impact a tiny fraction of the city’s current investments, according to city officials, who said there are nearly $30,000 worth of Israel bonds in a Vanguard international index fund where the pension is invested. But the city had held $2.3 million in Israeli bonds as recently as 2022, according to investment documents, prompting the councilors to argue they need to prohibit future investment.
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“I am deeply concerned and disappointed in the City Council’s proposed divestment ordinance that reeks of antisemitism,” Smiley said. “The ordinance is divisive and polarizing and will only make members of our Jewish community feel further isolated and targeted.”
It’s not uncommon for US states and municipal governments to use the Israeli government bonds as an investment vehicle. The bonds are currently paying between 5 and 6 percent interest rates, according to the Israel Bonds website. Providence’s bonds matured in 2022 and were not reinvested.
According to national news reports, some US states have increased their investments in the bonds since the Oct. 7 attack by Hamas.
The ordinance, sponsored by Councilors Miguel Sanchez, Roias and Council President Rachel Miller, was introduced at Thursday night’s council meeting and referred to the Finance Committee to be considered.
It would prohibit city assets, including the pension fund, endowments or annuities, from being invested in “any sovereign 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.”
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Israel is the only sovereign nation mentioned by name in the ordinance.
The Jewish Alliance of Rhode Island and Board of Rabbis of Greater Rhode Island sent out a statement strongly condemning the ordinance, arguing it “singles out Israel as a pariah state, which is antisemitic.”
Adam Greenman, the head of the Jewish Alliance, said just the act of criticizing the Israeli government isn’t antisemitic.
“Where this ordinance becomes antisemitic is where it solely singles out Israel,” Greenman said. “They’ve specifically chosen to focus attention and energy on Israel, even as they acknowledge that there are other places throughout the world that are, in their mind, problematic.”
Greenman said the divestment conversation is “divisive,” pushing the two sides of the Israel-Palestinian debate further apart.
“It doesn’t have any practical impact other than to alienate the Jewish community further,” Greenman said.
Another group called Jewish Voice for Peace, an anti-Zionist group that has been protesting the war, said they support the ordinance.
“As Jewish, Providence residents dedicated to our deeply held Jewish value of tikkun olam, or ‘repairing the world,’ we believe that our city government should focus on making sure our communities can thrive here locally — not invest in foreign genocide and war,” said Zack Kligler, a member of the group that launched its Rhode Island chapter after Oct. 7.
“We absolutely resent the accusation that it’s antisemitic,” Kligler said.
City Councilor John Goncalves sent a letter to three sponsors expressing concerns about the ordinance, calling it “both divisive and as a foreign policy matter, outside of the purview of our local government.”
“This ordinance is largely symbolic and ineffective in very practical terms,” Goncalves said. “Local government resources and efforts are better directed toward pressing local concerns where the council can make a tangible impact.” He said the ordinance alienates Providence residents who support Israel and its right to exist.
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Sanchez, who was fired from his job in Governor Dan McKee’s office for his pro-Palestinian views, said he was frustrated with Goncalves’ letter.
“Our intention is not to be divisive,” Sanchez said. “He’s creating tension that really shouldn’t be there. Obviously, if folks have concerns then we can talk about them.”
Roias and Sanchez noted that the City Council in 2006 divested city assets from companies doing business in Sudan amid a genocide in the Darfur region. The Israel ordinance does not propose to divest from companies doing business in Israel, only in direct government bonds.
It’s not clear if the ordinance would have the votes to pass the all-Democratic, 15-member council.
Smiley pledged to veto the ordinance if it reaches his desk. The council would need 10 votes to override a potential veto.
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Steph Machado can be reached at steph.machado@globe.com. Follow her @StephMachado.
