Top House Oversight Democrat seeks answers about Kushner’s Israeli investment following CNN report

House Democrat presses Kushner firm over Israeli investment ties

Earthguardiansonline.com – Rep. Robert Garcia, the leading Democrat on the House Oversight Committee, has asked Jared Kushner’s investment company for detailed information about its business activity in the Middle East, escalating scrutiny of the former White House adviser’s financial interests.

Garcia sent a letter Monday to Affinity Partners, Kushner’s private equity firm, after questions emerged about the firm’s major investment in Phoenix Financial, an Israeli financial-services company. Affinity is Phoenix’s largest shareholder, and Phoenix has invested in companies that supply equipment and services connected to Israel’s military operations.

The California congressman said committee Democrats are examining what he described as extraordinary and potentially risky ways that President Donald Trump and members of his family may have benefited from proximity to political power.

“I request detailed information about your business dealings in the Middle East to understand whether your significant financial gains have come at the cost of Americans’ safety and security,” Garcia wrote.

The request signals how overseas business interests involving Trump family members could become a central oversight issue if Democrats regain control of the House after this fall’s midterm elections. Garcia’s letter focuses on whether Kushner’s commercial interests could overlap with his role as a volunteer peace envoy in the Middle East.

Investment relationship draws conflict questions

Affinity Partners increased its Phoenix Financial stake last year, shortly before Trump returned to the White House. Kushner later characterized Phoenix as Affinity’s “best investment” in September 2025.

Phoenix, based in Tel Aviv, has holdings in Elbit Systems, Israel’s largest weapons manufacturer, as well as stakes in at least eight additional businesses that provide military-related products. The companies identified include suppliers of drones, naval vessels and demolition equipment.

Those nine companies all gained value last year. Several cited the war in Gaza as a factor increasing demand for their products or services. Affinity does not directly own shares in the nine companies, but its position in Phoenix means it could benefit when Phoenix earns profits.

The review of Phoenix’s portfolio focused on insurance holdings rather than investments made through retirement accounts. Israeli financial-disclosure rules made it possible to trace portions of the company’s investments, although the disclosed records do not represent every asset Phoenix owns.

There is no indication that Kushner’s diplomatic work directly influenced the investments under review. Still, the overlap between a peace-focused advisory role and a financial stake in a firm connected to military suppliers has prompted questions about whether private financial incentives and public responsibilities can be cleanly separated.

Kushner attorney challenges Garcia’s criticism

An attorney for Kushner rejected Garcia’s allegations and pointed to the congressman’s own indirect exposure to Phoenix Financial and Elbit Systems through California public pension plans.

“Rep. Garcia’s letter is a masterclass in irony,” the attorney said.

The attorney argued that Garcia holds an interest in the same investments he is questioning. The statement added that Kushner does not determine Phoenix’s investment decisions and said the congressman should examine his own financial connections if he believes such holdings create a concern.

Garcia’s latest financial disclosures show that his pension benefits are administered through the California Public Employees’ Retirement System and the California State Teachers Retirement System. Both funds hold investments in Phoenix Financial or Elbit Systems.

Garcia’s office responded that he and other public employees covered by the pension systems do not direct the funds’ investment choices and cannot individually withdraw from specific holdings.

“Kushner makes millions with no accountability all while he travels the Middle East on behalf of his father in law,” said Sara Guerrero, Garcia’s spokesperson.

Kushner’s lawyer has said that he has never participated in, or directed, Phoenix’s choices about where it invests. The attorney did not address Kushner’s work as a negotiator for the Trump administration.

Public response and looming oversight fight

Kushner responded publicly the day after the investment questions were raised, using X to describe the account of his firm’s financial interests as “deeply misleading.” He did not identify specific factual errors in his statement.

“Misleading stories will not distract me from the work President Trump asked me to do: help end wars, bring people together and pursue peace. That work is too important,” Kushner wrote.

The dispute illustrates a recurring challenge for officials and advisers with extensive private-sector holdings: even when an individual does not make a portfolio company’s day-to-day investment decisions, financial connections can still raise questions about incentives, access and public confidence.

Garcia’s inquiry seeks to clarify the scope of Affinity’s Middle East dealings and determine whether additional congressional oversight is warranted. With control of the House potentially at stake in the midterm election, the issue could become part of a wider examination of the Trump family’s domestic and international business relationships.