The election of Zohran Mamdani as New York mayor, after he has repeatedly spoken out in favor of a boycott of Israeli institutions and companies, is keeping many Israeli entrepreneurs awake at night. The main concern is that Mamdani will work to end contracts with Israeli companies in municipal units and affiliated public organizations, like the New York Police Department (NYPD) and fire service.
Based on his past declarations, the new mayor will be able to take action against companies that sell technology to Israel’s security forces. These include companies in the field of security cameras, smart city management software and cybersecurity. He may also expand the scope to any Israeli company citing the founders’ service in the Israeli military or work for official institutions in Israel.
Mamdani has already sought to boycott the activities of the Technion, Israel Institute of Technology on Roosevelt Island, which is now under his responsibility, even though it is a civilian academic institution in every sense. Israeli companies are also active with municipal bodies in civilian areas - managing transport, scanning urban infrastructure and financial control.
It is not just Israeli companies that could be affected. US companies founded by Israelis in the US or even companies that have made acquisitions of Israeli companies could also find themselves in the crosshairs. One of the suppliers of weapons and security systems to the NYPD, Axion, earlier this week acquired Israeli startup Carbyne, which develops systems for managing police call centers, for $625 million. How will Mamdani react to the acquisition that was completed on the eve of his election?
Via Transportation (NYSE: VIA), a US company that provides smart mobility services to New York City school transport yellow buses, has a large development center in Tel Aviv and an Israeli management team. What is more important to Mamdani - to be able to use Via's systems to reduce the cost of school bus and public transport services in New York, as he promised during the elections, or that its founders served in the IDF?
"Mamdani’s approach will alienate senior officials"
Mamdani’s anti-Israel rhetoric impacts economic issues. He has supported the BDS campaign against Israeli companies, remarked that "the bootlaces of NYPD officers are tied by the IDF" - referring to the Israeli technology allegedly provided to the police, and said that he would work to end Cornell University's cooperation with the Technion on Roosevelt Island.
He has not made do with just talking: When he was appointed to the New York State Assembly in 2021, Mamdani worked to promote legislation against Israel. He initiated a law that would revoke the tax-exempt status of philanthropic organizations that also operate in Judea and Samaria under a law entitled "not at our expense", said that he would support a policy of not repurchasing Israel Bonds, and encouraged members of New York State's economic committees to ensure that no fund invests in Israel. "We must not have a fund that invests in violation of international law," he was recently quoted as saying in the New York Times.
Mamrani’s influence could go far beyond terminating and reexamining contracts with Israeli companies. He could appoint candidates with negative views on Israel to the boards of municipal companies, facilitate anti-Israel demonstrations even in business centers, and create an atmosphere hostile to Israeli companies even without taking targeted actions. Mamdani could oversee how the municipality invests its employees’ pension funds, a huge fund estimated at around $300 billion.
An Israeli lawyer familiar with the work of defense companies in the US explains, on condition of anonymity that "it would be very difficult for Mamdani to simply cancel an existing contract, which carries heavy economic sanctions for its violation. However, he could be content with tightening the criteria for winning future tenders or renewing existing tenders and denying the ability to compete to those who are allegedly 'involved in warlike activity' or 'entities that work with systems under investigation by the International Court of Justice.'"
In the US, there is a law against BDS, so Mamdani will not be able to adopt a sweeping boycott of Israeli companies. "The main impact against Israeli companies will probably not be seen in legislation or explicit regulations, but in the atmosphere," says the same lawyer. "Even without ordering municipal units not to work with Israeli companies, Mamdani's approach will distance those senior officials from contacting such companies in advance. The same applies to the Technion on Roosevelt Island. Mamdani may not take practical steps against the campus in the first stage, but his threats may harm the academic institution's ability to attract researchers and lecturers, who may not want to take the risk."
A prominent Israeli investor in the New York scene is also pessimistic about the general atmosphere among Israeli entrepreneurs, noting that even if Mamdani does not take practical steps against Israelis or Israeli companies, "The spread of negative sentiment toward Israeli companies will lead entrepreneurs and employees to look for other destinations outside of New York - the nearby town of Tenafly, Miami and Austin. The end of the war in Israel will also lead many to return to home. As for ending contracts with US companies that contract with Israeli companies - these are companies with significant lobbying and I do not think Mamdani will want to invest in this, at least not in his first year in office."
"A showcase for Israeli high-tech"
Former MK Erel Margalit won a New York City tender last decade to build a cybersecurity center for banks, insurance companies and financial organizations. The building is home to 35 Israeli companies, many of which have agreements with the city's Economic Development Corporation (EDC).
Margalit doesn't see Mamdani suddenly canceling the agreements with his companies: "He won't be able to stop them, it would be too much trouble for him but he can definitely change the mood of things. I think this is an anti-Israeli sentiment, but not one that necessarily translates into sentiment against Israeli tech. We are already accustomed to changes in mayors' policies, and this is not the first time we have encountered 'anti-business' policies. Over time, we learned to cultivate relationships with the business sector here - the banks, the insurance companies, and the EDC's VP of Technology - and that helped us a lot, also at the state level."
Does Margalit see Israeli entrepreneurs leaving for Austin and Miami? "The biggest damage that can happen here, more than from one mayor or another, is an Israeli who gets discouraged and moves south. "The despair is contagious, and it's harmful because New York is important. It's the economic capital of the eastern US. It's Israel's business showcase abroad - more than any other city or country. It's easy for CEOs and senior executives from all the important companies to come and visit here, and there are 450 Israeli startups and 65 unicorns here. I think the challenge for Israelis is greater in Europe than in New York, which we must preserve it as a showcase for Israeli tech. It's the window for positive diplomacy toward Israel - Saudis or Emiratis who can't come to Tel Aviv come to meet us here."
Published by Globes, Israel business news - en.globes.co.il - on November 6, 2025.
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