New Analysis Questions Legality of Campus BDS Efforts Against Israel

A newly released research paper is raising fresh legal questions about the wave of campus and institutional campaigns calling for divestment from Israel, arguing that such efforts may violate anti-discrimination laws in the United States.

The report, published by Northwestern Law School professor Max M. Schanzenbach and Harvard Law School professor Robert H. Sitkoff, examines the growing push by activists affiliated with the global boycott, divestment, and sanctions movement (BDS), which urges governments, universities, and companies to cut economic ties with Israel in the first step to the Jewish state’s eradication.

According to the paper, divestment campaigns that single out Israeli institutions or businesses could potentially run afoul of state and federal laws that prohibit discrimination based on national origin.

BDS advocates argue that their campaign is a form of political protest designed to pressure Israel to change its policies. The movement, formally launched by anti-Israel activists in the mid-2000s, has called for boycotts of Israeli goods, divestment from companies linked to Israel, and government sanctions.

But the new analysis contends that when governments or public institutions adopt such policies, the underlying legality could be questionable. The authors argue that targeting Israel specifically for economic exclusion could conflict with existing anti-discrimination statutes or state laws aimed at preventing boycotts of Israel.

More than half of US states have enacted legislation limiting participation in BDS-related boycotts or requiring government contractors to certify that they are not boycotting Israel. In some states, including California, laws restrict the awarding of public contracts or funding to organizations that participate in boycotts targeting the country.

The paper also challenges the argument frequently made by BDS supporters that such boycotts are protected under the First Amendment to the US Constitution. While individuals may advocate for boycotts as political speech, the authors argue that institutional policies, particularly those adopted by government bodies or public universities, could still violate anti-discrimination or procurement laws depending on how they are implemented.

The paper raises potential anti-discrimination concerns surrounding divestment campaigns that target Israeli companies. The authors argue that some boycott or divestment proposals could expose universities or public institutions to legal vulnerability if investment decisions are based primarily on a company’s Israeli national origin rather than specific conduct. Under certain US civil rights laws and state policies governing public institutions, actions that single out individuals or entities because of national origin may trigger discrimination claims. The paper suggests that if divestment policies are framed broadly against Israeli businesses as a category, rather than tied to particular corporate activities, institutions implementing them could face legal challenges alleging unequal treatment.

The analysis argues that modern divestment campaigns targeting Israel differ significantly from the anti-apartheid divestment movement against South Africa. The paper contends that while many universities in the 1980s adopted selective restrictions on companies directly tied to South Africa’s apartheid system, often aligned with international sanctions and corporate conduct codes, the current iteration of the BDS campaign against Israel frequently calls for broader exclusions based on a company’s ties to Israel itself, potentially creating legal risks such as national-origin discrimination issues.

Divestment campaigns have become especially prominent in recent years on US college campuses, where student groups have pushed universities to withdraw endowment investments from companies tied to Israel or its military. Critics, however, argue the campaigns unfairly single out the world’s only Jewish state and risk creating discriminatory policies against Israeli businesses or academics.

In the two years following the Hamas-led Oct. 7, 2023, massacre of 1,200 people and kidnapping of 251 hostages throughout southern Israel, campus activists have intensified efforts to implement divestment policies on university campuses. While universities have mostly resisted these efforts, federal lawmakers have advanced legislation to truncate divestment initiatives before they gain traction. For instance, in 2024, Congress introduced “The Protect Economic Freedom Act,” which would render universities that participate in the BDS movement against Israel ineligible for federal funding under Title IV of the Higher Education Act, prohibiting them from receiving federal student aid. The bill would also mandate that colleges and universities submit evidence that they are not participating in commercial boycotts against the Jewish state.