U.S. reverses pledge to link disaster funds to Israel boycott stance

The Trump administration on Monday (August 4, 2025) reversed course on requiring U.S. cities and States to rebuke boycotts of Israeli companies in order to receive disaster funds, according to a statement, and deleted the earlier policy from its website.

The U.S. Department of Homeland Security removed its statement that said States must certify they will not sever “commercial relations specifically with Israeli companies” to qualify for the funding.

Reuters reported on Monday that the language applied to at least $1.9 billion that states rely on to cover search-and-rescue equipment, emergency manager salaries and backup power systems, among other expenses, according to 11 agency grant notices reviewed by Reuters.

This is a shift for the administration of President Donald Trump, which has previously tried to penalise institutions that don’t align with its views on Israel or antisemitism.

Economic pressure on Israel

The disaster funding requirement took aim at the Boycott, Divestment, and Sanctions movement designed to put economic pressure on Israel to end its occupation of Palestinian territories. The campaign’s supporters grew more vocal in 2023, after Hamas attacked southern Israel and Israel invaded Gaza in response.

“FEMA grants remain governed by existing law and policy and not political litmus tests,” said DHS Spokeswoman Tricia McLaughlin in a statement on Monday afternoon.

DHS oversees the Federal Emergency Management Agency. FEMA in grant notices posted on Friday said states must follow its “terms and conditions” to qualify for disaster preparation funding.

Those conditions required that they not support what the agency called a “discriminatory prohibited boycott,” a term defined as refusing to deal with “companies doing business in or with Israel.”

The new terms, posted later on Monday, do not include that language.