(JTA) — Earlier this week, several pro-Palestinian groups in North Carolina touted the state pension fund’s sale of $6.7 million in Israeli government bonds as a “victory.”

But despite the groups’ claims, the North Carolina Department of State Treasurer said that the sale had nothing to do with “divestment” but was simply a part of a routine portfolio rebalance.

“The sale of two Israel Government International bonds was not related to a divestment exercise,” the North Carolina Department of State Treasurer said in a statement to the Jewish Telegraphic Agency. “The previously held bonds were sold in October during a larger fixed income portfolio rebalancing exercise that sold bonds with shorter remaining maturity than the portfolio typically holds.”

The activists had hailed the sale as a win for the boycott Israel movement.

“VICTORY: NC DIVESTS FROM ISRAEL!! Genocide and apartheid are a bad investment,” wrote the Jewish Voice for Peace chapter of Triangle North Carolina in a post on Instagram, adding that the sale was a result of a “powerful campaign” supported by over 40 local organizations.

The JVP chapter had joined with several other groups, including Muslims for Social Justice and Jewish Voice for Peace Charlotte, to form Break the Bonds North Carolina Coalition, a campaign advocating for divestment. Similar campaigns have long lobbied treasury officials in other places.

But the likelihood that officials in North Carolina would pass BDS measures appeared unlikely. In 2017, the state’s governor signed into law a bill that banned state agencies from doing business with companies that boycott Israel. The elected state treasurer, Brad Briner, is a Republican, as is the majority of the legislature. The governor, meanwhile, is a moderate Jewish Democrat who has never made Israel a centerpiece of his politics.

Still, anti-Israel sentiment that has surged among Democrats have made an impact on the state. In June, the North Carolina Democratic Party passed a resolution calling for the United States to implement an immediate arms embargo on Israel. And in August, the Democratic Rep. Valerie Foushee announced that she “will not accept” donations for the 2026 elections from the pro-Israel lobby AIPAC.

Last month, on Oct. 29, Break the Bonds gathered outside the State Treasurer’s Office to deliver a petition with 4,600 signatories and called on the state to divest the Israeli bonds held in its pension fund.

“The people of North Carolina do not want a retirement fund invested in genocide, occupation, and apartheid,” the petition read. “We demand that our savings be used to make our communities stronger and healthier, not to fund crimes against humanity abroad.”

But while a press release from JVP cited the petition as part of its efforts to pressure the state to divest, the treasury said that its “rebalancing exercise took place before Break the Bonds NC Coalition presented its petition to our department.”

The treasurer also added that as of the end of October, it still held some Israeli bonds within its broader investments.

The discrepancy between the group’s celebratory tone and the treasury’s explanation was not the first time that a Boycott, Divestment, and Sanctions effort elicited a conflicting response.

In April 2024, anti-Zionist activists at Pitzer College in California, including the local JVP chapter, claimed victory after the school announced it would no longer pre-approve students to study abroad at Haifa University. The school later said the decision had come from waning student interest, not a principled objection.

A similar episode also occurred this month in Minnesota, where pro-Palestinian advocates claimed they had successfully pressured the State Board of Investment to divest from Israeli bonds.

Despite the statements from the groups, which included MN BDS Community and the Anti-War Committee, the state board told TCJewfolk that the sale of some Israeli bonds was a fiscal choice.

“Contrary to statements from the organization referenced in your inquiry, the Minnesota State Board of Investment (SBI) has not changed its investment policy regarding permitted investments,” the SBI told TCJewfolk. “The SBI hires professional, third-party institutional investment managers to make investment decisions at the individual security level. These holdings are not static.”

The status of Israel bonds in New York City offers another glimpse at the complicated politics of the contested holdings. This year, Comptroller Brad Lander, a progressive, declined to reinvest Israel bonds that matured, giving anti-Israel activists a sense of the victory. But the city remains invested in Israeli assets, and activists there are continuing to push for divestment — which the mayor-elect, Zohran Mamdani, favors and the comptroller-elect, Mark Levine, says he does not plan to do.

In a press release Tuesday, JVP said that the sale in North Carolina came shortly after “Minnesota and Michigan announced their decisions not to re-invest.

Reached for comment by the Jewish Telegraphic Agency, Ari Rosenberg, a member of Jewish Voice for Peace Triangle and the Break the Bonds NC Coalition, said the state’s decision “represents the power of people’s voices from across the state — including public sector workers — who had been calling attention to these problematic investments for nearly a year.”

“For months, we met with the Treasurer’s office, gathered 5,000 signatures from concerned citizens, and rallied with state pension fund recipients and community members to deliver our petition and our message,” Rosenberg said in an emailed statement. “The Treasurer’s decision makes it clear that our voices were heard.”

The post NC activists claimed ‘victory’ in their Israel-divestment push. The state treasury says they’re wrong. appeared first on The Forward.