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FEMA to Deny Grants to States and Cities That Boycott Israeli Companies

August 4, 2025
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FEMA will deny funding grants to states and cities that boycott Israeli firms.
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States and cities that boycott Israeli companies will be denied grants from the Federal Emergency Management Agency, according to grant notices posted by the agency in recent days.

The new eligibility criteria could restrict access to at least $1.9 billion earmarked for search-and-rescue equipment, emergency manager salaries and backup power systems used during blackouts, Reuters reported.

To be eligible for federal funds, the grant notices say that states and cities must follow the “terms and conditions” set forth by the Department of Homeland Security, the parent agency of FEMA. Since April, D.H.S. has prohibited grantees from “limiting commercial relations specifically with Israeli companies.”

The policy underscores how the Trump administration has linked its stance on Israel to unrelated federal funding, including billions of dollars in research grants for colleges and universities. But the move to restrict FEMA grants may be largely symbolic, because no states — and only a handful of cities — have enacted laws or policies that prohibit state agencies from doing business with Israeli firms.

Still, the policy could prevent wildfire response funding from flowing to cities like Richmond, Calif., where the city council voted last year to divest from companies doing business in Israel. It also comes as the Atlantic hurricane season heats up, with Tropical Storm Dexter forming in the western Atlantic late Sunday but not forecast to be a threat anywhere on the East Coast.

Maxine Joselow reports on climate policy for The Times.

The post FEMA to Deny Grants to States and Cities That Boycott Israeli Companies appeared first on New York Times.

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