The Trump administration said states and cities will not receive funding to prepare for natural disasters if they choose to boycott Israeli companies, according to an agency statement.

States must certify that they will not cut off “commercial relations specifically with Israeli companies” to receive the money from the Federal Emergency Management Agency, according to the agency’s terms for grantees.

The condition applies 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.

It is the latest example of the Trump administration making use of routine federal funding to advance its political message at the state level.

FEMA said in July that US states will be required to spend part of their federal terrorism prevention funds on helping the government arrest migrants, an administration priority.

An anti-Israel protester holds a banner calling for boycott, divestment, and sanctions against Israel; illustrative.
An anti-Israel protester holds a banner calling for boycott, divestment, and sanctions against Israel; illustrative. (credit: Wikimedia Commons)

The Israel requirement takes aim at the Boycott, Divestment, Sanctions (BDS) movement. The campaign's supporters grew more vocal in 2023, after Hamas attacked southern Israel and Israel invaded Gaza in response.

“DHS will enforce all anti-discrimination laws and policies, including as it relates to the BDS movement, which is expressly grounded in antisemitism,” a spokesperson for Secretary of Homeland Security Kristi Noem said in a statement.

At least 34 states already have anti-BDS laws or policies

The requirement is largely symbolic. At least 34 states already have anti-BDS laws or policies, according to a University of Pennsylvania law journal.

The American Jewish Committee supports the Trump administration's policy, said Holly Huffnagle, the group's director of antisemitism policy.

Under one of the grant notices posted on Friday, FEMA will require major cities to agree to the Israel policy to receive a cut of $553.5 million set aside to prevent terrorism in dense areas.

New York City is slated to receive $92.2 million from the program, the most of all the recipients. Allocations are based on the agency’s analysis of “relative risk of terrorism,” according to the notice.