This story has been updated to include new information about university divestment efforts nationwide, focusing on opposition to divestment at the University of Michigan and Brown University.

DEARBORN, Mich. (Michigan News Source) — The Dearborn City Council has unanimously approved a policy to divest city funds from companies that provide weapons and military technology to Israel, citing concerns over human rights violations. The decision comes amid escalating violence in Gaza and Lebanon, and reflects growing pressure from Dearborn’s large Arab American community, as noted by Dearborn Mayor Abdullah Hammoud. 

MORE NEWS: Train Crash Kills One in Kalamazoo

At the heart of the new policy is an investment guideline aimed at avoiding companies that “knowingly and directly enable or facilitate human rights violations or violations of international law.” The policy specifically mentions companies supplying Israel with military technology that has been used in conflicts in Gaza, the West Bank, Lebanon, and other regions.

The council’s decision follows years of advocacy from local activists and comes as Dearborn’s Arab American population—which makes up over 55% of the city’s residents according to 2020 census data—continues to raise concerns about the conflict, according to Hammoud.

He specifically cited more than 80 protests in the city over the past year related to the issue.

“What is happening in Gaza and Lebanon is against all international law,” Hammoud said during a recent council meeting. As a vocal advocate for the policy, Hammoud praised the council for aligning with what he described as the community’s sense of justice. 

While many residents, including those with family members affected by the recent violence in Lebanon, supported the move, not all residents were in favor of the policy. Some expressed concerns about the potential financial impact of divestment and questioned whether the council was unfairly targeting Israel. 

One resident, Anthony Deegan, argued that the policy did not take into account the suffering faced by Israelis during the conflict and pointed to the October 7 attack by Hamas. “There are two sides to justice,” Deegan said, cautioning the council against viewing the situation through a one-sided lens.

“It’s not so simple as the Zionists are evil, bad monsters, killing all the children of Palestine. The state of Israel is surrounded on all sides by actors who would certainly push them into the sea and or commit genocide if they could do it,” Deegan said. “Israel is a very solid democracy in the Middle East where Jews and Arabs inside have all their rights and their freedoms to flourish and prosper.”

MORE NEWS: Bus Service Adds More Stops Between Detroit and Mt. Pleasant

Hammoud pushed back against critics of the policy, claiming that it was about ensuring Dearborn’s investments aligned with the city’s values. He likened the decision to avoiding investments in industries like firearms, tobacco, and gambling, arguing that it was inappropriate for the city to profit from such sources. 

“I would not imagine you step to this podium and say, after a mass shooting at a school, that we should invest in Smith and Wesson,” Hammoud said.

The divestment policy applies to Dearborn’s post-employment health care fund and its police and fire retirement system, though the city council only controls about 25% of the $700 million portfolio. The rest is overseen by pension boards made up of city employees, according the Detroit Free Press. 

An analysis provided by Morgan Stanley’s Graystone Consulting outlined how the city’s investments could be adjusted to meet the new ethical guidelines without compromising expected returns. Council President Michael Sareini said that the council had been assured the changes would not impact the portfolio’s overall performance, which is expected to continue yielding a 6% return. 

“We have an obligation as a fiduciary to make sure we do what’s best for our residents,” Sareini said.

While Dearborn has moved forward with divestment, universities across the U.S. have taken the opposite stance. Earlier this year, the University of Michigan (U-M) Board of Regents rejected calls for divestment from companies linked to Israel. Regent Sarah Hubbard emphasized the university’s longstanding policy of shielding its endowment from political pressures. 

“We are not moving to make any divestment of any kind,” Hubbard said in a U-M press release. 

Given that the primary goal of U-M’s endowment is to support its academic and research missions through financial growth, Hubbard also said that making a diversified investment portfolio essential. 

“To do otherwise would be to increase our investment risk and decrease our investment returns,” she said.

Moreover, regent Michael Behm dismissed claims that a significant portion of the endowment was invested in companies linked to Israel, saying that “less than one-tenth of 1% of the endowment is indirectly invested in such companies.”

Similarly, Brown University’s governing body recently voted against divesting from companies connected to Israel after considering a recommendation from the Advisory Committee on University Resources Management (ACURM). The committee reviewed the proposal from student activists and ultimately advised against divestment, which the Corporation of Brown accepted. In its decision, Brown reaffirmed that its investment strategy is guided by financial considerations rather than political ones.

Despite the universities’ decisions, opposition to divestment continues to spark protests. At the University of Michigan, tensions escalated when activists vandalized President Santa Ono’s West Bloomfield home, spray-painting messages like ‘coward’ and ‘intifada,’ demanding the university reverse its stance.

The protests are part of a larger national movement pushing for university divestment from Israel, despite these institutions standing firm.

Notably, the council’s policy is not limited to Israel but could potentially be applied to other countries accused of human rights abuses, such as China, which has been criticized for its treatment of the Uyghur minority.

Hamtramck, another city with a large Arab American population, passed a similar resolution earlier this year, though it remains unclear how these moves align with state law. In 2017, Michigan passed legislation prohibiting public entities from contracting with companies that boycott “strategic partners” of the U.S., a term that includes Israel. Whether Dearborn’s divestment efforts conflict with this law has yet to be determined.

Governor Gretchen Whitmer’s office has deferred questions about the matter to the state Treasury Department, though state officials have indicated that the issue falls outside their jurisdiction. Legal challenges could arise if the divestment efforts are seen as conflicting with state law.