• The Trump administration has warned states and cities they will lose FEMA funding if they boycott Israeli companies.
• States must certify they won’t engage in discriminatory boycotts targeting Israeli businesses to qualify for disaster aid.
• This policy targets the Boycott Divestment and Sanctions (BDS) movement, affecting roughly $1.9 billion in emergency funds.

WASHINGTON, D.C. (TDR) — The Trump administration has declared that states and cities choosing to boycott Israeli companies will be ineligible for federal disaster preparedness funding, according to a Department of Homeland Security (DHS) terms document cited by Reuters on Monday.

FEMA Funding Conditional on Anti-Boycott Certification

The document mandates that to receive aid from the Federal Emergency Management Agency (FEMA), states must certify they do not participate in a “discriminatory prohibited boycott.” This is defined as refusing to deal commercially with Israeli companies or those operating under Israeli law.

“Refusing to deal, cutting commercial relations, or otherwise limiting commercial relations specifically with Israeli companies or with companies doing business in or with Israel or authorized by, licensed by, or organized under the laws of Israel” is prohibited.

Notably, no restrictions apply to boycotts of American companies by U.S. states or cities. Reuters reports this Israeli boycott condition affects at least $1.9 billion in federal funding, which states rely on for critical disaster preparedness resources like search and rescue equipment, emergency manager salaries, and backup power systems.

Targeting the BDS Movement

The policy specifically targets the Boycott Divestment and Sanctions (BDS) movement, which campaigns for a global boycott to pressure Israel over its occupation of Palestinian territories and the ongoing humanitarian crisis in Gaza. The BDS movement has faced opposition in the U.S. for years, with at least 34 states enacting laws banning boycotts of Israel in some form.

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The Israeli government has actively pushed for anti-BDS legislation in U.S. states. In 2020, the Israeli prime minister’s office wrote on X that it had promoted such laws in most states to counter attempts to boycott Israel.

The Ben & Jerry’s Controversy

In 2021, the American ice cream company Ben & Jerry’s announced it would stop selling products in illegal Israeli settlements in the West Bank. Israeli officials urged states with anti-BDS laws to punish Ben & Jerry’s and its parent company, Unilever. Several states responded with actions against Unilever until the company sold its Ben & Jerry’s operations in Israel and the West Bank to a local licensee.

This DHS policy reinforces the Trump administration’s firm support for Israel and its determination to penalize entities aligned with the BDS movement.

How will states balance political activism with the need for critical federal funding?

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