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The Trump administration is requiring states and cities to pledge non-participation in boycotts of Israeli companies in order to receive nearly $2 billion in Federal Emergency Management Agency (FEMA) disaster aid, according to documents reviewed by Reuters.

Grant notices issued last week stipulate that recipients of federal disaster recovery funds—including for hurricanes, wildfires, and floods—must certify they will not terminate commercial contracts with Israeli firms. The policy targets states or cities aligned with the Boycott, Divestment and Sanctions (BDS) movement, which has grown since Israel’s 2023 war with Hamas.

DHS will enforce all anti-discrimination laws and policies, including as it relates to the BDS movement, which is expressly grounded in antisemitism,” a Department of Homeland Security spokesperson said.

The funding includes $1.9 billion in disaster relief and $553 million in urban counterterrorism aid. New York City, for instance, stands to lose $92 million if it fails to comply.

Critics have raised concerns about coercive conditions tied to humanitarian funding, especially as FEMA aid becomes critical amid worsening climate-related disasters. FEMA declined to comment.

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