5 August, 2025
us-states-boycotting-israel-face-federal-funding-cuts

The Trump administration has announced that US states and cities that boycott Israeli companies will be ineligible for federal aid aimed at natural disaster preparedness. This decision ties essential federal funding to the administration’s political stance on Israel, significantly impacting states’ ability to respond to emergencies.

The Federal Emergency Management Agency (FEMA) issued grant notices on Friday outlining new conditions for funding. States must certify that they will not sever “commercial relations specifically with Israeli companies” to qualify for a share of approximately $1.9 billion allocated for various emergency management needs, including search-and-rescue equipment, salaries for emergency managers, and backup power systems.

This requirement reflects the administration’s broader strategy to leverage federal funding to promote its views on Israel and combat the Boycott, Divestment, and Sanctions (BDS) movement, which aims to exert economic pressure on Israel regarding its policies towards Palestinian territories. The movement’s visibility increased in 2023 following heightened conflict, including attacks by Hamas and Israel’s military response in Gaza.

In a statement, a spokesperson for Secretary of Homeland Security Kristi Noem emphasized that the Department of Homeland Security (DHS) would enforce all anti-discrimination laws, linking the BDS movement to antisemitism. “DHS will enforce all antidiscrimination laws and policies, including as it relates to the BDS movement,” the spokesperson stated.

The practical implications of this requirement may be limited, as at least 34 states already have laws or policies that oppose BDS, according to research from the University of Pennsylvania law journal. Critics of the policy, including Mahmoud Nawajaa of the BDS Movement, have called it “shameful,” arguing that it undermines the right to protest and express dissent.

Supporters of the Trump administration’s stance, including the American Jewish Committee (AJC), have applauded the decision. Holly Huffnagle, the AJC’s director of antisemitism policy, stated that the policy reinforces the importance of standing against discrimination and supporting Israel.

Under the recent grant notices, major cities must agree to the Israel-related policy in order to access a portion of $553.5 million designated for terrorism prevention in high-density areas. Notably, New York is set to receive $92.2 million, the largest allocation from this program. FEMA bases these allocations on an analysis of the “relative risk of terrorism” in different locations.

As the implications of these funding conditions unfold, the intersection of federal aid, political stances, and local governance continues to raise important questions about the future of state and local autonomy in matters of international relations.