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Trump Admin Says It Will Hold Disaster Prep Dollars From Cities, States Boycotting Israel — Then Walks It Back

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Trump Admin Says It Will Hold Disaster Prep Dollars From Cities, States Boycotting Israel — Then Walks It Back

by Daily Caller News Foundation
August 4, 2025 at 5:01 pm
in News, Wire
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Trump Admin Says It Will Hold Disaster Prep Dollars From Cities, States Boycotting Israel — Then Walks It Back
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Daily Caller News Foundation

Department of Homeland Security (DHS) funding guidelines indicated that cities and states boycotting Israeli companies would be ineligible for federal disaster preparedness aid, but the Trump administration subsequently removed that specific language from the rules on Monday.

A series of grant notices posted by the Federal Emergency Management Agency (FEMA) on Friday required applicants to comply with the “terms and conditions” issued by the DHS in April, which prohibit participation in boycotts against Israel; the requirement would have affected at least $1.9 billion in FEMA funding, according to Reuters. After news of the policy spread Monday, the guidance in question was changed to no longer include specific language about anti-Israel boycotts while retaining language pertaining other types of discriminatory policy.

Under the initial set of DHS guidelines, any grant applicant that engaged in a “discriminatory prohibited boycott” is ineligible for funding. The policy defined a prohibited boycott as “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 to do business.”

A spokesperson for the DHS told the Daily Caller News Foundation that “no states have lost funding, and no new conditions have been imposed” in its guidance.

“FEMA grants remain governed by existing law and policy and not political litmus tests. DHS will enforce all anti-discrimination laws and policies, including as it relates to the [boycott, divestment and sanctions] movement, which is expressly grounded in antisemitism,” the DHS spokesperson told the DCNF. “Those who engage in racial discrimination should not receive a single dollar of federal funding.”

The language included in the initial version of the guidance sparked significant backlash from some corners of the MAGA movement on Monday prior to the revision, with individuals like former Daily Caller White House Correspondent Saagar Enjeti, popular podcast host Matt Walsh and others criticizing the provision.

The grants to which these terms apply include over $300 million in funding to assist state, local, tribal and territorial emergency management agencies in implementing emergency preparedness systems. Major cities will also have to comply with the Israeli policy to access a portion of the more than $1 billion set aside to help prevent terrorism and other catastrophic events.

FEMA did not respond to the Daily Caller News Foundation’s request for comment.

The developments surrounding the funding restrictions follow growing criticism of Israel, both domestically and abroad, over its ongoing war against Hamas. President Donald Trump so far has maintained a firm stance in support of Israel, putting him at odds with many Democrats, and increasingly, with some within the Republican Party as well.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].

Tags: DCNFforeign-affairsU.S. News
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