U.S. Reverses Course on Israeli Boycott Requirement for Disaster Funds
The Trump administration has retracted a policy that required U.S. cities and states to reject boycotts of Israeli companies to qualify for disaster funds. The reversal comes after Reuters highlighted its implications on $1.9 billion worth of federal emergency funding. DHS clarified FEMA grants are governed by law, not political standards.

In a notable policy reversal, the Trump administration has rescinded a controversial requirement mandating that U.S. cities and states must renounce boycotts of Israeli companies to receive federal disaster aid. This policy change was highlighted by a Department of Homeland Security (DHS) announcement on Monday.
Previously, at least $1.9 billion in federal funds earmarked for essential services, such as search-and-rescue equipment and backup power systems, was contingent upon states certifying non-participation in boycotts targeting Israel. This stance was initially aligned with the administration's approach to penalize entities unsupportive of its views on Israel and antisemitism.
The prior policy was rooted in opposition to the Boycott, Divestment, and Sanctions (BDS) movement, which seeks to apply economic pressure on Israel. Recent geopolitical tensions, including attacks by Hamas and subsequent Israeli military actions in Gaza, intensified discussions around this issue. DHS now states that FEMA grants will adhere to existing laws rather than political demonstrations.
(With inputs from agencies.)
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