Press Kit — Media Resources for Arkansas Pension Investigation
Media resources for journalists covering Arkansas pension investments in Israel Bonds.
Campaign summary
Divest for AR Future is a grassroots Arkansas campaign investigating Israel Bonds investments by state pension funds. Through FOIA requests to four state agencies, the campaign has obtained and analyzed nearly 1,100 public records revealing approximately $155 million in authorized pension fund exposure to Israel Bonds — despite internal recommendations against new purchases, without independent credit analysis, and through a process that bypassed normal investment channels.
The campaign is calling for a pause on new purchases, independent financial analysis, and pension transparency legislation for the 2027 Arkansas legislative session.
Key statistics
| Figure | Detail |
|---|---|
| $55M | Current Arkansas State Treasury holdings in Israel Bonds (including $20M purchased since May 2025) |
| $50M | ATRS (teacher retirement) authorization for Israel Bonds (June 2, 2025; Board Chair cast lone “no” vote) |
| $25–50M | APERS (public employee retirement) authorization for Israel Bonds (May 15, 2025) |
| $155M | Total authorized Arkansas exposure — Treasury holdings plus pension fund authorizations combined |
| 1,098 | Public records obtained and analyzed across two FOIA rounds to four state agencies |
| 3 | Major credit agencies (S&P, Moody’s, Fitch) that have downgraded Israel’s credit rating since 2024 |
| 0 | Independent credit analyses of Israel Bonds found in the entire document record |
| 4 | Arkansas state agencies that received FOIA requests (Treasury, ATRS, APERS, Auditor of State) |
| 1 | Dissenting vote on the ATRS Board — Chair Danny Knight, who warned the process departed from standard practice |
| 2 | Rounds of FOIA requests filed (August 2025 and February 2026) |
| 141 | New documents received in FOIA Round 2 (118 Treasury, 16 APERS, 7 ATRS) |
| 8,648 | Pages in APERS’s Round 2 FOIA production — the single largest response received |
Timeline of key events
2017
-
Arkansas first purchases Israel Bonds
State Treasury purchases through outreach from Israel Bonds representatives to then-Treasurer Dennis Milligan.
2023
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$10M purchase after October 7
State Board of Finance approves purchase. Treasurer Walther: “Those who bless Israel will be blessed, and those who curse Israel will be cursed.”
2024
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Moody’s downgrade: A1 → A2
First major credit downgrade, with negative outlook.
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S&P downgrade: AA- → A+
S&P downgrades Israel’s sovereign credit rating, with negative outlook.
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Fitch downgrade: A+ → A
Third major agency downgrades Israel, with negative outlook.
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Moody’s second downgrade: A2 → Baa1
Moody’s further downgrades Israel, with negative outlook.
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S&P second downgrade: A+ → A
S&P further downgrades Israel, with negative outlook.
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Internal memo recommends against new purchases
Senior Treasury investment manager cites credit downgrades, recommends holding positions and letting $17M roll off.
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Auditor arranges Israel Bonds meetings
State Auditor Milligan arranges for Israel Bonds representatives to meet with state officials.
2025
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Israel Bonds representatives meet state officials
Sales representatives meet with directors of ATRS, APERS, the State Treasurer, and the State Auditor.
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$20M Treasury purchase; APERS authorizes $25–50M
Treasury purchases two new $10M Israel Bonds, bringing holdings to $55M. APERS Investment Subcommittee unanimously authorizes $25–50M.
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ATRS Board authorizes up to $50M
Board adopts Resolution 2025-22. Board Chair Danny Knight casts lone “no” vote, warning the process departs from standard practice.
-
APERS full board approves $25–50M
Jason Brady introduces Israel Bonds citing Treasury’s $55 million holdings. Board approves without independent financial analysis.
-
Arkansas Times investigation published
“Arkansas taxpayers are loaning Israel millions of dollars as its war in Gaza grinds on.”
-
Governor celebrates bond purchases
Governor Sanders: “Arkansas puts its money where its mouth is and is investing millions in Israeli bonds!”
-
ATRS formalizes investment guidelines
Establishes written guidelines for “Israeli Jubilee bond account” managed by Reams Asset Management — four months after board authorization.
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APERS confirms purchase
APERS receives first Israel Bonds statement, confirming a purchase eventually occurred.
2026
-
FOIA Round 2 submitted
Second round of FOIA requests submitted to all four agencies.
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Treasury delivers Round 2 response
118 documents, 2,526 pages.
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APERS delivers Round 2 response
16 documents including 8,648-page production.
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ATRS delivers partial Round 2 response
7 documents. General Counsel Jennifer Kelly confirms full original scope will be honored.
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Investigation corpus complete: 1,098 documents
Auditor of State’s Round 2 response received via flash drive from General Counsel TJ Fowler. Total: 1,098 documents across four agencies, two FOIA rounds.
Key quotes from the public record
“Both S&P Global Ratings and Moody’s downgraded Israel’s credit ratings due to heightened security risks and weakened economic prospects. The outlook remains negative… It is crucial for Israel to manage these risks effectively.”
— Senior investment manager, Arkansas State Treasurer’s Office (internal memo, late 2024)
“[The Board is] going outside of the scope of the way we usually do things.”
— Danny Knight, ATRS Board Chair and sole dissenting vote (June 2025)
“Arkansas puts its money where its mouth is and is investing millions in Israeli bonds!”
— Governor Sarah Huckabee Sanders (public statement, August 2025)
“Those who bless Israel will be blessed, and those who curse Israel will be cursed. Arkansas unequivocally stands with Israel, as demonstrated by the recent actions of Governor Sarah Sanders and the Arkansas Legislature.”
— State Treasurer Larry Walther, press release (Oct. 2023) (source document)
“This is a wonderful message, Stacy. I will reach out to the Auditor directly, but please let him know how deeply we appreciate his support… you are truly one of a kind; forever grateful.”
— Lawrence Berman, Israel Bonds National Managing Director, replying to the Auditor’s office on the October 7 anniversary (source document)
“It had come to his attention” that Israel Bonds were available, and the State Treasury “currently holds approximately $55 million in Israel Bonds as part of its $11 billion portfolio.”
— Jason Brady, Auditor of State’s appointee to APERS board, introducing Israel Bonds to the board (June 11, 2025)
“Still zero for APERS.”
— Amy Fecher, APERS Executive Director, confirming no purchases two months after board authorization (July 30, 2025)
“APERS intent is to purchase the bonds directly. Staff opinion is that there is not a need to incur management fees.”
— Carlos Borromeo, APERS Chief Investment Officer (2025)
The fiduciary question
Arkansas law requires pension investments to be based solely on “pecuniary factors” — financial merit (Protecting Arkansas Investments Act, Act 411 of 2023; Ark. Code § 24-2-614). The central question for journalists: Were these investment decisions made through the standard process of independent financial analysis, or were they driven by political relationships and external pressure?
Key evidence points:
An internal Treasury memo recommended against new purchases. The Treasurer’s senior investment manager wrote that the state should hold existing positions and let maturing bonds roll off.
No independent credit analysis has been produced. A review of nearly 1,100 public records from four state agencies found zero independent credit analyses.
The ATRS Board Chair warned the process was irregular and voted against it. Danny Knight’s dissent noted the request departed from the normal manager-driven process.
The investments were arranged through a state official with stated non-financial motivations. State Auditor Dennis Milligan arranged meetings between Israel Bonds representatives and agency heads.
Public statements by the Governor, Treasurer, and other officials framed the purchases in political — not financial — terms. The Governor celebrated them as proof Arkansas “puts its money where its mouth is.”
The bond market offers many alternatives with higher credit ratings and greater liquidity. Israel Bonds cannot be traded before maturity and carry declining credit ratings.
The Auditor’s appointee served as conduit. Jason Brady introduced Israel Bonds to the APERS board citing Treasury holdings, not independent analysis. The board approved $25–50 million.
The board voted before staff were ready. APERS authorized $25–50 million but purchased nothing for two months. The CIO was still establishing contact with Israel Bonds in late July 2025.
Two pension funds, zero independent credit analyses. APERS chose direct purchase with no manager; ATRS hired a manager but created investment guidelines four months after authorization. Neither produced independent analysis before the board vote.
Background resources
- Arkansas law: Ark. Code § 24-2-614 (sole interest rule); Act 411 of 2023 (pecuniary factors only); Ark. Code §§ 24-2-610–619 (prudent investor standard)
- Credit ratings: Moody’s downgraded Israel from A1 to Baa1 (via A2); S&P downgraded from AA- to A (via A+); Fitch downgraded from A+ to A (August 2024); all three maintained negative outlook
- Prior press coverage: Jennifer Lenow, “Arkansas taxpayers are loaning Israel millions of dollars as its war in Gaza grinds on,” Arkansas Times, July 11, 2025
- Source documents: Browse the full FOIA document archive — key evidence documents published for public review
Resources for download
Media contact
Email: divestforarfuture@proton.me
For source documents and detailed research findings, contact us directly. All claims are backed by public records obtained through lawful FOIA requests.
Divest for AR Future is a campaign of Little Rock Peace for Palestine.