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    Home»News»Trump Administration Backtracks on Threat to Withhold $1.9B in Disaster Funds Over BDS Support
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    Trump Administration Backtracks on Threat to Withhold $1.9B in Disaster Funds Over BDS Support

    ObservernewsBy ObservernewsAugust 5, 2025No Comments3 Mins Read
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    Facing mounting backlash, the Trump administration has reversed a controversial policy that threatened to block $1.9 billion in disaster relief funding from states and cities that support the Boycott, Divestment, and Sanctions (BDS) movement against Israel. The quiet reversal comes after intense criticism from civil liberties groups, local governments, and media outlets.

    DHS Quietly Removes Controversial Clause

    The Department of Homeland Security (DHS) removed a clause from its terms and conditions that had stipulated only jurisdictions rejecting BDS policies could qualify for FEMA emergency funds. These funds are vital for:

    • Search and rescue operations

    • Natural disaster response

    • Staff salaries

    • Emergency equipment and resources

    Originally, the DHS required states not to support any actions that “limit commercial relations with Israeli companies or companies doing business in or with Israel.” That clause has now been deleted from funding requirements.

    FEMA Funding Now Unlinked from Israel Policy

    DHS spokesperson Tricia McLaughlin clarified in a statement that “FEMA grants remain governed by existing law and policy and not political litmus tests.”

    • In an official post on X (formerly Twitter), the department emphasized:

      “There is NO FEMA requirement tied to Israel in any current NOFO (Notice of Funding Opportunity). No states have lost funding, and no new conditions have been imposed.”

    Reversal Sparks Fresh Debate Over Political Influence

    The original clause drew sharp rebuke from civil rights groups, policy watchdogs, and local leaders who saw the move as an unconstitutional attempt to punish free speech and political expression.

    Critics accused the Trump administration of attempting to weaponize disaster aid as a tool to suppress the BDS movement — which advocates economic pressure on Israel over its military operations in Gaza and treatment of Palestinians.

    DHS Reaffirms Stance on Antisemitism

    Despite walking back the funding threat, the DHS reaffirmed its position on the BDS movement, stating:

    “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.”

    This underscores the Trump administration’s continued hardline stance against BDS and efforts to link it to antisemitism, even as legal experts argue that political boycotts are protected under the First Amendment.

    Context: Pressure Over Gaza and Domestic Free Speech

    The reversal also comes amid escalating global scrutiny of Israel’s ongoing offensive in Gaza, now extending over 20 months. As U.S. support for Israel remains a flashpoint issue, domestic criticism of related federal policies — especially ones perceived as suppressing dissent — has intensified.

    This story is developing and will be updated as more information becomes available on FEMA policy and federal funding criteria.

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