The State of Texas now holds approximately $280 million in Israeli government bonds. Why?
To be clear, I do not object to Texas investing outside the United States. The Permanent School Fund invests internationally as part of a diversified investment strategy. Prudent financial management means investing where we can achieve appropriate risk-adjusted returns and diversifying to manage risk.
But Israel is different.
In February, Acting Comptroller Kelly Hancock announced that Texas would double its investment in Israel Bonds from approximately $140 million to $280 million—the largest one-time Israel Bond purchase in Texas history. He said the investment “reinforces our long-standing relationship” with Israel and that the Texas-Israel partnership “stretches beyond finance.”
That is no longer simply an investment decision. The Comptroller himself described it as an expression of solidarity and a political relationship with a foreign government.
I believe that crosses a line.
I do not object to sound financial management. I object to using Texas state funds to take sides in foreign-policy disputes that are properly addressed by the federal government.
I am running for Governor of Texas. I am not running for President, Secretary of State, or the United States Senate. My responsibility is to Texans. I receive no support from AIPAC. Foreign policy is better directed toward our Libertarian US Senate candidate Ted Brown.
To be open and candid, I believe Israel has a right to exist and defend itself. I also recognize the history of Palestinian displacement surrounding the establishment of Israel and the suffering of Palestinian civilians. Opposing the policies of Netanyahu does not make you an anti Semite. Those are serious issues, but they are not issues that Texas should be trying to resolve through its investment portfolio.
Texas should trade with the world. Texas should invest prudently. Texas should welcome international business and investment.
But Texas should not use taxpayer-funded state institutions to conduct foreign policy.
Texas first.