Jared Kushner, President Trump's son-in-law and special envoy, publicly rejected a CNN investigation on Friday that alleged his private equity firm, Affinity Partners, had financial ties to a company closely connected to Israel's military operations.
In a statement posted on social media, Kushner accused CNN of publishing a "deeply misleading story and headline" that implied his Middle East diplomacy improperly benefited his investments in Israeli defense companies. He insisted that Phoenix Financial, the firm Affinity holds a major stake in, is not a defense contractor but rather one of Israel's largest publicly traded financial institutions, managing roughly $220 billion in assets.
"Phoenix is not a defense company. It is one of Israel's largest publicly traded financial institutions, highly regulated and managing approximately $220 billion across thousands of investments," Kushner wrote, likening it to "the Israeli equivalent of Vanguard or Fidelity." He also pointed out that Affinity is an SEC-registered investment firm, and its stake in Phoenix was disclosed before Trump's re-election and before Kushner returned to public service.
The CNN report identified Affinity as the largest shareholder in Phoenix, which reportedly invested at least $456 million in companies involved in Israel's military campaign in Gaza. Kushner countered that Affinity does not own the defense companies highlighted in the story.
Kushner has been a central figure in the Trump administration's Middle East policy, leading talks between Israeli Prime Minister Benjamin Netanyahu and Hamas, and also involved in negotiations regarding the U.S.-Israel conflict with Iran and Russia's war in Ukraine. His role has drawn scrutiny from lawmakers, including Rep. Robert Garcia (R-Calif.) and Sen. Ron Wyden (D-Ore.), who wrote to the White House in March expressing concerns about potential conflicts of interest.
The report comes amid ongoing efforts to broker a ceasefire in Gaza. Kushner reportedly met with Netanyahu and Hamas leaders in August, though a deal remains elusive. Hamas has demanded a full Israeli withdrawal and an end to attacks, while Netanyahu has rejected those conditions. Hamas did agree to a 15-point peace roadmap proposed by Trump in July, but only if Israel halted its offensive—a condition Netanyahu refused.
Kushner concluded his statement by saying, "Misleading stories will not distract me from the work President Trump asked me to do: help end wars, bring people together and pursue peace." He echoed Trump's frequent criticism of CNN, calling the article's headline "provocative" and its content misleading.
The dispute highlights the broader political tensions surrounding Trump's family members in public roles, with some lawmakers and critics questioning the ethical boundaries of such appointments. Related coverage includes legal scrutiny over taxpayer-funded ads and the broader exhaustion with Trump-era politics.
