Pennsylvania Treasurer Faces Ethics Questions Over Israel Bonds Investment and Campaign Funding

HARRISBURG — Pennsylvania Treasurer Stacy Garrity is facing scrutiny from ethics experts regarding her use of campaign funds to attend an event hosted by a firm to which she directed $45 million in state investments through Israel Bonds since the October 7, 2023 attacks. The situation raises questions about potential conflicts of interest and the appropriate use of campaign versus taxpayer dollars.

Investment in Israel Bonds and Subsequent Event

Garrity invested $45 million in Israel Bonds, a move that followed earlier internal concerns within the Treasury Department about the potential risks associated with the investment. Spotlight PA reports that the firm behind the bonds then invited Garrity, along with other Pennsylvania investors, to a “Thank You Event.”

Garrity opted to pay the $450 ticket cost from her campaign funds, believing it was inappropriate to use taxpayer money for an event she considered political in nature. Her campaign spokesperson, Matt Beynon, stated, “Treasurer Garrity believed that the Israel Bonds event crossed the line beyond her official capacity as Treasurer and into the political, so she decided to pay for her ticket from her campaign funds because she did not believe taxpayer dollars should be used for those purposes.”

Ethical Concerns and Questions Remain

While some see Garrity’s decision to use campaign funds as a positive step, ethics experts have raised concerns about the lack of transparency surrounding the event. Davina Hurt, director of the Markkula Center for Applied Ethics at Santa Clara University, acknowledged the “self-reflective movement” but emphasized the need for more information. Hurt questioned who Garrity interacted with at the event, how she determined it was a political event, and the timeline of her decision-making process.

Hurt stated that as an elected official, it’s significant to be thoughtful about which events one attends and to clearly separate individual interests from public benefit. The details of the event remain unclear, and the Development Corporation for Israel, the firm behind the bonds, did not respond to follow-up questions from Spotlight PA.

Broader Context of Israel Bonds Investments

Garrity’s investment in Israel Bonds began before the October 7th attacks, with an initial $20 million purchase announced after the Hamas attack, as reported by WHYY. She subsequently invested an additional $25 million in June 2025, just hours before Israel launched strikes on Iran, according to PennCapital-Star. Garrity has defended these investments as both financially sound and a demonstration of support for Israel.

The Pennsylvania Treasury has been investing in Israel Bonds since the 1990s, and Garrity has stated they “pay above-market returns and they’ve never defaulted.” However, a 2021 memo from a former top Treasury staffer cautioned that Israeli bonds could be a risky investment due to Israel’s political instability and military involvement, as Spotlight PA revealed. This advice was not followed after the 2023 Hamas attack.

Comparison to Governor Shapiro’s Practices

Garrity’s campaign likewise used the opportunity to criticize Governor Josh Shapiro’s ethics, pointing to his use of a “public-private slush fund” to attend events like the Super Bowl. Beynon highlighted a “clear distinction between Treasurer Garrity’s efforts for transparency and Governor Shapiro.” Shapiro has a gift ban in place but has utilized funds from a nonprofit to cover the costs of attending sporting events.

Expert Opinion on Political Influence

Richard Painter, a former White House ethics counsel, emphasized the importance of keeping politics separate from investment decisions, stating, “Politics needs to get out of the investment sphere because it’s other people’s money, and we can’t be putting taxpayer money at risk to make a political point.” He suggested that Garrity’s attendance at the event “gives the impression that investment decisions are made for political reasons.”