HARRISBURG, PA — While no Pocono municipalities directly send money to Israel, Pennsylvania residents across Monroe, Pike, Wayne, Lackawanna, Luzerne, and Carbon counties are indirectly funding Israel through state-level investments and policies.

The Money: $64.5 Million in Israel Bonds

Pennsylvania State Treasurer Stacy Garrity has invested $64.5 million of state taxpayer funds in Israel Bonds as of July 2025. This is money from Pennsylvania’s treasury that comes from all state taxpayers—including those living in the Poconos.

Timeline of Recent Investments:

• October 2023: Garrity announced $20 million investment after Hamas attack (total reached $56 million)
• June 2025: Added $25 million more during Israel-Iran military strikes
• Current Total: $64.5 million

This makes Israel Bonds Pennsylvania’s single largest foreign investment—the only foreign-backed security the state purchases independently rather than as part of index funds.

What Are Israel Bonds?

Israel Bonds are investment securities backed by the Israeli government. They’re marketed as a way to financially support Israel while earning returns. Pennsylvania has invested in them since the 1990s under both Democratic and Republican treasurers.

Key Facts:

• Not traded on open market (you’re locked in until maturity)
• Higher interest rates than many U.S. bonds
• Never defaulted
• Proceeds support Israeli government operations

Garrity defends the investments as both financially sound and politically important: “Israel is our greatest ally in the Middle East, and I will continue to stand by them.”

The Controversy

Pennsylvania’s investment has sparked significant debate:

Supporters argue:

• Israel Bonds are reliable, secure investments
• They’ve provided good returns for 30+ years
• Supporting Israel aligns with U.S. foreign policy

Critics counter:

• It’s taxpayer money being used for foreign policy
• Other states don’t make such large single-country investments
• Moody’s downgraded Israel’s credit rating due to war risks
• The bonds aren’t liquid—Pennsylvania is locked in

In February 2024, pro-Palestine protesters at the state Capitol demanded Garrity divest from Israel, leading to dozens of arrests for trespassing.

The BDS Ban: How It Affects Pocono Contracts

Beyond direct investments, Pennsylvania law restricts what companies can do business with the state.

Act 163 (passed in 2016) prohibits Pennsylvania from:

• Contracting with companies that boycott Israel
• Working with firms that have divested from Israeli businesses
• Doing business with entities participating in BDS (Boycott, Divestment, Sanctions) movements

What This Means for the Poconos:

Any company wanting to do business with Monroe County government, Stroudsburg Borough, or other local municipalities must certify they don’t boycott Israel if the contract involves state funding or oversight.

Falsifying this certification carries penalties:

• Up to $250,000 fine
• 3-year suspension from state contracts

Pennsylvania’s Broader Israel Ties

The state has maintained formal cooperation with Israel since 1997:

1997: Governor Tom Ridge signed Pennsylvania’s first cooperative agreement with Israel to enhance technological research, economic development, and cultural awareness.

Business Connections: Over 350 Pennsylvania companies trade with Israel or have Israeli subsidiaries, including major firms in Philadelphia and Pittsburgh.

Philadelphia-Israel Chamber of Commerce: Operates offices serving southeastern PA and the Lehigh Valley, facilitating business partnerships between Pennsylvania companies and Israeli firms.

What Pocono Residents Should Know

Your tax dollars are involved: A portion of Pennsylvania state taxes collected from Pocono residents goes into the general treasury, which Garrity then invests in Israel Bonds.

No direct local payments: Individual Pocono counties and municipalities don’t send money directly to Israel or Israeli companies based on available public records.

State law compliance required: Any local business contracting with government must comply with the anti-BDS law, even if the work is local.

Election issue: The Israel Bond investments became a major issue in the 2024 Pennsylvania treasurer race, with Democratic challenger Erin McClelland questioning whether the state should take sides in foreign conflicts.

The Political Context

Treasurer Garrity, a Republican, has made supporting Israel a signature issue. She increased investments specifically after the October 7, 2023 Hamas attacks and again during Israel’s conflict with Iran in June 2025.

Critics note that Garrity previously divested $3 million from Russia after the Ukraine invasion and sold $394 million in Chinese securities over “human rights violations,” making her foreign policy stances through investments a pattern rather than an exception.

McClelland, who lost to Garrity in 2024, argued: “We’ve never seen the treasurer take sides in foreign conflicts before. That’s a relatively new construct we’re seeing that is becoming very prevalent in the Republican Party.”

The Bottom Line

While no Pocono town directly funds Israel, state-level policies mean:

1. $64.5 million of Pennsylvania taxpayer money (including from the Poconos) is invested in Israel Bonds
2. State law prohibits government contracts with companies that boycott Israel
3. All Pennsylvania residents, including those in Monroe, Pike, Wayne, Lackawanna, Luzerne, and Carbon counties, are affected by these policies

Whether you view this as smart investment strategy and supporting an ally, or as inappropriate use of taxpayer funds for foreign policy, your Pennsylvania state taxes are connected to Israel through decisions made in Harrisburg.

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Source: Pennsylvania Treasury, International Consortium of Investigative Journalists, Pennsylvania Act 163, WHYY reporting