A new ADL/JLens report warns that BDS-aligned divestment from companies doing business in Israel could cost New York City pension funds more than $37 billion over the next decade.

The report, titled The Impact of Israel Divestment on the New York City Pension Funds, examined two hypothetical large-cap U.S. equity portfolios over a 10-year period from July 2015 to June 2025. One was broadly diversified, while the other excluded 47 major American companies targeted by the BDS movement for doing business in Israel, including Alphabet, Amazon and Microsoft.

According to the report, the BDS-excluded portfolio underperformed by about two percentage points annually. Applied to New York City’s pension system, which manages more than $300 billion, ADL and JLens estimated $37.55 billion in potential forgone value from 2025 to 2035.

The largest projected loss was for the Teachers’ Retirement System, at $15.09 billion. The New York City Employees’ Retirement System could lose $10.91 billion, followed by the Police Pension Fund at $7.13 billion, the Fire Pension Fund at $3.02 billion and the Board of Education Retirement System at $1.41 billion.

“This analysis highlights the potentially serious financial consequences of applying BDS-aligned divestment strategies to the city’s pension funds,” ADL CEO Jonathan Greenblatt said. Ari Hoffnung, JLens managing director and former NYC deputy comptroller, said the movement has shifted “from college campuses to city halls,” but “the investment math doesn’t change with the venue.”

The report comes amid growing debate over New York pension policy under Mayor Zohran Mamdani, who has opposed city pension investments tied to Israel. ADL noted that its estimate is based on past market performance and assumes a similar gap over the next decade.