The Trump administration will deny federal disaster‑preparedness aid to U.S. states and cities that boycott Israeli companies, linking routine funding to its political position.
In grant notices posted Friday, the Federal Emergency Management Agency said applicants must comply with its “terms and conditions,” which include certifying they will not cut off “commercial relations specifically with Israeli companies” to remain eligible for assistance.
Why It Matters
The rule covers at least $1.9 billion in federal grants that states depend on for search‑and‑rescue gear, emergency management salaries, backup power systems, and other essentials, according to 11 FEMA grant notices reviewed by Reuters. It marks the Trump administration’s latest move to leverage federal funding to advance its stance on Israel.
What To Know
In April, the Department of Homeland Security — which oversees FEMA — said states and cities receiving its grants are prohibited from boycotting Israel. And in July, FEMA announced that states must allocate part of their federal terrorism‑prevention funds to assisting in the arrest of migrants, another key administration priority.
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Associated Press
The new requirement targets the Boycott, Divestment and Sanctions (BDS) movement, which seeks to pressure Israel economically to end its occupation of Palestinian territories. Support for the campaign grew louder in 2023 after Hamas attacked southern Israel and Israel launched a military offensive in Gaza.
Newsweek has reached out to the BDS movement via email on Monday afternoon for comment.
The American Jewish Committee, an advocacy group that supports Israel, backs the policy, Holly Huffnagle, the group’s director of antisemitism policy, told Reuters.
One grant notice issued Friday says FEMA will require major cities to agree to the policy to access part of $553.5 million earmarked for terrorism prevention in high‑risk urban areas. New York would receive $92.2 million — the largest share — based on FEMA’s analysis of each city’s “relative risk of terrorism.”
In May, prominent figures from within President Donald Trump’s “Make America Great Again” or “MAGA” movement came out against the bipartisan IGO Anti-Boycott Act, House Resolution 867—saying it would criminalize boycotts and free speech against Israel. After the backlash, a pending vote was canceled.
Critics of the H.R. 867 said the legislation goes against the right to free speech established in the First Amendment of the U.S. Constitution. Its supporters say it targets antisemitic actions, including boycotts of Israel.
What People Are Saying
A spokesperson for Homeland Security Secretary Kristi Noem said in a statement to Reuters, “DHS will enforce all antidiscrimination laws and policies, including as it relates to the BDS movement, which is expressly grounded in antisemitism.”
Representative Marjorie Taylor Greene, a Georgia Republican, said on X, in May: “I will be voting NO. It is my job to defend American’s rights to buy or boycott whomever they choose without the government harshly fining them or imprisoning them. But what I don’t understand is why we are voting on a bill on behalf of other countries and not the President’s executive orders that are FOR OUR COUNTRY???”
What Happens Next
The Trump administration move is largely symbolic — at least 34 states already have anti‑BDS laws or policies, according to a University of Pennsylvania law journal.
Update: 8/4/25, 12:32 p.m. ET: This article was updated with new information and remarks.
Update: 8/4/25, 1:25 p.m. ET: This article was updated with new information and remarks.
