Jewish Groups Sue Medford Over Values-Based Investment Ordinance

Plaintiffs argue the city's policy unlawfully mandates divestment based on ideology.

Published on Feb. 8, 2026

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Two Jewish advocacy organizations have filed a federal lawsuit challenging Medford, Massachusetts' recent values-based investment ordinance. The plaintiffs argue the policy illegally forces the city to divest public funds for political and ideological reasons, conflicting with federal and state law and violating investment rules that prioritize liquidity and financial returns.

Why it matters

This lawsuit highlights the growing tension between municipalities seeking to align public investments with ethical values and legal concerns over political bias and reduced returns for taxpayers. The outcome could set a precedent for other cities considering similar values-based investment policies.

The details

Medford's ordinance restricts the city from investing taxpayer funds in companies tied to categories such as fossil fuels, defense contracting, or alleged human rights violations. The Gevura Fund and the National Jewish Advocacy Center, along with a law firm, filed the lawsuit arguing the policy conflicts with federal and state law and violates Massachusetts investment rules. The plaintiffs claim the ordinance opens the door to political bias and reduced returns.

  • Medford's city council approved the values-based investment ordinance in 2025.
  • The mayor vetoed the ordinance in October 2025 over legal and financial concerns.
  • The city council overrode the veto in November 2025, finalizing the measure as part of the city's investment policy.

The players

Gevura Fund

A Jewish advocacy organization that filed the federal lawsuit against Medford's values-based investment ordinance.

National Jewish Advocacy Center

A Jewish advocacy organization that filed the federal lawsuit against Medford's values-based investment ordinance.

Libby Hoopes Brooks & Mulvey, P.C.

The law firm representing the Gevura Fund and National Jewish Advocacy Center in the federal lawsuit.

Isaac Bears

Medford City Council President who sponsored the values-based investment ordinance.

Medford Mayor

The mayor of Medford who vetoed the values-based investment ordinance over legal and financial concerns.

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What they’re saying

“We know the movement to pass these legally defective divestment ordinances nationwide are motivated by anti-Jewish animus, but that's not what this lawsuit is about.”

— Rachel Sebbag, Litigation Counsel, National Jewish Advocacy Center and Gevura Fund (Press Release)

“As a clear matter of constitutional law, these ordinances cannot stand. Rogue activist city councils must not be allowed to trample taxpayer rights.”

— Rachel Sebbag, Litigation Counsel, National Jewish Advocacy Center and Gevura Fund (Press Release)

“If we have these public funds, we are not going to invest them in this global effort that disregards and dehumanizes people in so many different ways, whether that's for political gain or for private profit – or in many cases both – in a never-ending cycle of destruction and violence.”

— Isaac Bears, Medford City Council President (Medford City Council Meeting)

What’s next

The judge in the case will decide whether to block enforcement of Medford's values-based investment ordinance.

The takeaway

This lawsuit highlights the ongoing debate over the role of ethics and values in municipal investment policies. The outcome could set a precedent for other cities considering similar measures and the balance between upholding taxpayer interests and aligning public funds with community values.