FEMA Withholds $1.9B Disaster Aid From US States, Cities Boycotting Israeli Firms

The Trump administration has announced that states and cities that boycott Israeli companies will be denied nearly $2 billion in federal disaster relief funding from FEMA, which includes grants for search-and-rescue equipment, emergency manager salaries, and backup power systems. This policy requires recipients to certify they will not cut commercial ties with Israeli firms, linking disaster aid to a political stance on Israel amid its ongoing conflict with Hamas. While the administration frames this move as enforcing anti-discrimination laws against the BDS movement, it has faced backlash from both political sides, with critics arguing it withholds aid from Americans in need based on foreign policy positions. Although the policy is significant, it may be largely symbolic, as few states or cities have formal boycotts of Israeli companies, but some localities like Richmond, California, have divestment measures that could be impacted. The funding restrictions also extend to counterterrorism grants in major cities, including New York City, risking millions in aid if agreements are not met. This decision marks an escalation in the administration's efforts to counter the BDS movement by tying federal funding to support for Israel.