Empowering States to Divest from Entities Boycotting Israel.
This law allows state and local governments to withdraw public pension funds and prohibit investments in companies that engage in economic boycotts targeting Israel or Israeli-controlled territories. The change ensures these local decisions are not overridden by federal law, granting states greater autonomy. For citizens, this means the management of their public retirement funds may be influenced by foreign policy considerations, provided financial prudence is maintained.
Key points
State and local governments can legally exclude companies involved in boycotting Israel from public contracts and investments without federal preemption.
Managers of public pension funds may divest assets from such companies, provided it does not lower returns or increase risk for retirees.
Before imposing sanctions, authorities must provide written notice to the company and give them a chance to prove they are not engaged in boycott activities.
Expired
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