The Department of Homeland Security has reversed course on tying grants from the Federal Emergency Management Agency to a requirement that cities or states agree not to take part in boycotts of Israeli companies.

Homeland Security’s terms and conditions, which were updated in April, stated that grant recipients needed to agree to anti-discrimination wording, saying, “Discriminatory prohibited boycott means 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.”

Reuters reported on Monday that under the new rules, states would have to certify they are not cutting off commercial relations with companies tied to Israel if they want to continue to be eligible for disaster funding. At least $1.9 billion in grants for search and rescue equipment, emergency manager salaries, and backup power systems are reportedly tied to the new policy.

The policy goal was to block the Boycott, Divestment, Sanctions movement that pro-Palestinian activists have championed as an economic pressure strategy against Israel. The movement gained traction on college campuses in the months after the October 7 attacks and Israel’s invasion of Gaza.

There was online backlash to the wording on Monday after news of it circulated, including from some well-known MAGA supporters like Candace Owens, who claimed that “Trump has fully betrayed America for Netanyahu.”

Another commenter asked, “What happened to America first?”

The wording referring to Israel has now been removed from the terms and conditions on the Homeland Security website and a representative tells the New York Sun via email, “There is no FEMA requirement tied to Israel in any current [Notice of Funding Opportunity]. 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,” the representative continued. “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.”

The Trump administration has taken aim at instances of what it calls antisemitism in several arenas, especially higher education, since taking office in January. Mr. Trump established an antisemitism task force that has investigated harassment of Jewish students at Ivy League schools. Brown, Columbia, and the University of Pennsylvania have already reached settlements with the administration in order to avoid losing access to federal grants. 

The new rules would have had little impact on most of the country. As of September 2023, 38 states already had laws on their books blocking the Israeli boycotts. Only a few cities have adopted policies to boycott Israeli companies, among them Richmond, California, and Hamtramck, Michigan.