U.S. Reverses Policy Linking Disaster Funds to Anti-Israel Boycott

1 month ago 12

August 5, 2025 | 02:19 pm

TEMPO.CO, Jakarta - The Trump administration on Monday, August 4, 2025, reversed its policy that required cities and states in the U.S. to reject boycotts of Israel-affiliated companies to be eligible for federal disaster preparedness aid.

The U.S. Department of Homeland Security (DHS) removed the statement that states must declare that they will not be cutting "commercial relations" with Israel or Israeli companies to qualify for the funding.

The requirement applies to at least $1.9 billion relied upon by states to cover search and rescue equipment, emergency manager wages, and backup power systems, among other expenses, according to 11 grant notices from the agency.

This marks a shift for the Trump administration, which had previously sought to penalize institutions that did not align with its views on Israel or anti-Semitism.

The disaster funding requirements are aimed at the Boycott, Divestment, and Sanctions (BDS) movement designed to exert economic pressure on Israel to end its occupation of Palestinian territories. Supporters of this campaign became increasingly vocal in 2023 after the Israeli genocide escalated in the Gaza enclave.

"FEMA grants remain governed by existing law and policy and not a political litmus test," said DHS spokesperson Tricia McLaughlin in a statement on Monday evening, August 4.

DHS oversees the Federal Emergency Management Agency (FEMA). In the FEMA grant notice uploaded on Friday, August 1, states were required to comply with FEMA's "terms and conditions" to qualify for disaster preparedness funding.

The provisions require them not to support what the agency termed as "discriminatory prohibited boycott," a term defined as refusal to deal with "companies doing business in or with Israel." The new provisions later published on August 4 did not include this requirement.

However, the decision is largely seen as symbolic. More than 30 U.S. states have laws requiring "public entities to certify that they do not and will not boycott Israel," according to an essay titled "Anti-BDS Laws and the Politics of Political Boycotts" published under the University of Pennsylvania's Journal of Law and Social Change.

The FEMA requirements on Israel are "shameful," said Mahmoud Nawajaa of the BDS Movement in a statement on Monday, as reported by HuffPost.

The language in the original version of the guidance sparked strong reactions from some parties within the Trump Supporters movement, MAGA, on Monday before the revision. Figures like former Daily Caller White House Correspondent Saagar Enjeti, popular podcast host Matt Walsh, and others criticized the provision.

The funding tied to these provisions includes over $300 million in funds to assist state, local, tribal, and territorial emergency management agencies in implementing emergency preparedness systems. Major cities also have to adhere to pro-Israel policies to access a portion of over $1 billion allocated to help prevent terrorism and other disasters.

Developments surrounding the funding restrictions come amid growing ire against Israel, both domestically and internationally, over the genocide in Gaza. President Donald Trump has so far remained steadfast in his support for Israel, putting him at odds with many Democrats and even some Republicans.

As reported by Arab News, Marjorie Taylor Greene referred to Israel's war in Gaza as "genocide" and became the first Republican lawmaker to do so.

In recent months, calls to boycott Israeli and Israel-affiliated businesses and international companies doing business with Israel have escalated.

Recently, UN special rapporteur for Palestine, Francesca Albanese, called for action after publishing a scathing report alleging more than 60 companies, including major technology companies like Google, Amazon, and Microsoft, were involved in what she termed as the "transformation of Israel's economy of occupation into an economy of genocide."

Albanese was sanctioned by the U.S. after releasing the report.

Editor’s Choice: Ex-War Crimes Prosecutor: Evidence Indicates Genocide in Gaza

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