US reverses policy to block disaster aid over 'Israel' boycott

The Trump administration on Monday reversed a controversial funding requirement that would have denied disaster preparedness grants to US states and cities that support boycotts of 'Israeli' companies.

The Department of Homeland Security (DHS) confirmed that it had removed the earlier condition from its website, which had stated that recipients of certain federal disaster funds must certify they do not “sever commercial relations specifically with Israeli companies.” The language had appeared in at least 11 grant notices tied to USD 1.9 billion in funding, according to Reuters.

These funds, managed by the Federal Emergency Management Agency (FEMA), are crucial for covering expenses like emergency response equipment, salaries of disaster management personnel, and backup power systems. DHS now says that the grants “remain governed by existing law and policy and not political litmus tests,” according to spokesperson Tricia McLaughlin.

The withdrawn provision had sparked backlash for targeting supporters of the Boycott, Divestment, and Sanctions (BDS) movement, a campaign that aims to apply economic pressure on 'Israel' over its treatment of Palestinians. Calls to boycott 'Israel' intensified following its 2023 invasion of Gaza.

While the administration has previously sought to penalize institutions it viewed as unsupportive of 'Israel' or insufficiently tough on anti-Semitism, this reversal marks a rare retreat. FEMA’s updated guidance now omits the earlier requirement barring states from engaging in what the agency had labeled a “discriminatory prohibited boycott.”