Headline Roundup • August 4th, 2025
Trump Admin Threatens to Pull Disaster Aid from States That Boycott Israel, Rescinds After Criticism
Summary from the AllSides News Team
The Trump administration announced on Friday that the Federal Emergency Management Agency (FEMA) would deny federal disaster aid to states that boycotted Israeli firms, though it has now rescinded the conditions.
The Details: FEMA said states must follow “terms and conditions” that require they wouldn’t cut “commercial relations specifically with Israeli companies” to qualify for funding. The terms applied to at least $1.9 billion allotted for rescue equipment, emergency salaries, and backup power systems, among other things, according to documents reviewed by Reuters (Center bias), which first reported the news on Monday. Later on Monday, however, Just The News (Lean Right) reported the Department of Homeland Security (DHS) updated the notices to no longer include the conditions.
DHS Update: The DHS wrote on Monday evening, “There is NO FEMA requirement tied to Israel in any current NOFO. No states have lost funding, and no new conditions have been imposed. 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 BDS movement, which is expressly grounded in antisemitism. Those who engage in racial discrimination should not receive a single dollar of federal funding.” Saagar Enjeti (Center) reported, “Ok after speaking w/ folks here's whats going on: An original guidance from DHS explicitly stated that federal disaster funding was barred from states that allowed boycott of Israel. The WH changed this explicit language after widespread outcry BUT the DHS tweet makes it clear the admin reserves the right to deny these funds on BDS grounds based on the Anti-Boycott Act.”
Criticisms: When the news first broke on Monday, several commentators across the spectrum condemned the initial policy change. Matt Walsh (Right) wrote, “There is just no way to reasonably claim that this qualifies as ‘America First.’” Cenk Uygur (Left) wrote, “It’s absolutely humiliating for America to be controlled by a foreign country like this.” Glenn Greenwald (Center) wrote, “The Trump Admin -- yet again -- prioritizes the foreign country they revere over the interests of American citizens.”
Written by the AllSides staff (of humans). Learn more. Support our mission.
Featured Coverage of this Story

Kayla Bartkowski/AFP
US states and territories that boycott Israeli companies or those operating in Israel will be denied federal funds for natural disaster preparation, Reuters reported on Monday.
The Federal Emergency Management Agency (Fema) announced on Friday it was making nearly $1bn available to states to protect themselves from natural disasters, such as floods, tornadoes, hurricanes, and fires, as well as terrorist attacks and cyber disruptions.
This $1bn allocation, which will apply to 15 different grant programmes, is part of the "Notices of Funding Opportunity amounting to more than $2.2 billion available to state, local,...
U.S. states and cities that boycott Israeli companies will be denied federal aid for natural disaster preparedness, the Trump administration has announced, tying routine federal funding to its political stance.
The Federal Emergency Management Agency stated in grant notices posted on Friday that states must follow its "terms and conditions." Those conditions require they certify they will not sever “commercial relations specifically with Israeli companies” to qualify for funding.
The Trump Administration on Monday dropped language from the Department of Homeland Security that would have denied disaster aid funding to cities and states that boycotted Israeli companies, following intense backlash from both sides of the aisle.
AllSides Picks
Headline Roundup
British Teen's Death Sparks Protests, Split Media Narratives on Race and Policing
June 4th, 2026
Headline Roundup
Trump Names Bill Pulte Acting Intel Director, Media & GOP React in Mixed Fashion
June 3rd, 2026