The Trump administration has made a new rule about disaster aid. It says any U.S. city or state that wants to receive part of a $1.9 billion fund must promise not to boycott Israel or Israeli businesses. This policy was included in the 2025 grant terms posted by FEMA (Federal Emergency Management Agency) in April.

To qualify for the money, applicants must follow FEMA's internal rules. These include a condition that they must not support cutting off or limiting business with Israeli companies. This includes companies based in Israel or those doing business with or through Israel.

This move affects cities and states across the U.S. that may have passed or considered laws supporting the Boycott, Divestment, and Sanctions (BDS) movement. BDS aims to pressure Israel over its policies toward Palestinians. But under these FEMA guidelines, support for BDS may lead to losing disaster funds.

The requirement states that recipients must avoid supporting commercial bans targeting companies licensed, organized, or working under Israeli law. FEMA's position links financial help for disaster planning to foreign policy positions, which some critics see as overreach.

Supporters of the rule argue that the U.S. government has the right to set conditions on federal funds. They believe this helps strengthen the U.S.-Israel relationship.

Opponents say it threatens free speech and local governments' rights to make their own decisions. Legal challenges could arise if local entities are denied aid due to their views on international issues.

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