Trump Administration Walks Back Plan To Withhold $1.9 billion in FEMA Aid to Anti-Israel States and Cities

The Trump administration is walking back plans to withhold disaster aid from cities and states that are not friendly to Israel.  

On Monday, Reuters reported that states and cities that boycott Israeli companies could be denied grants from the Federal Emergency Management Agency (FEMA). Under the Department of Homeland Security’s (DHS) FY 2025 Standard Terms and Conditions released in April, federal aid applicants are prohibited from engaging in “a discriminatory prohibited boycott,” including “cutting commercial relations, or otherwise limiting commercial relations specifically with Israeli companies or with companies doing business in or with Israel.” 

DHS, which houses FEMA, removed language pertaining to Israel from its terms and conditions on Monday. A Reuters review of 11 agency grant notices estimated that the original language would have affected at least $1.9 billion in FEMA aid. The New York Times reports that policy could have prevented “wildfire response funding from flowing to cities like Richmond, Calif., where the city voted last year to divest from companies doing business in Israel.” 

“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 agency said in a statement on X. “DHS will enforce all anti-discrimination laws and policies, including as it relates to the [boycott, divestment, and sanctions] movement, which is expressly grounded in antisemitism. Those who engage in racial discrimination should not receive a single dollar of federal funding.”

Whether or not the Trump administration blocks FEMA aid to anti-Israel localities and states, the incident is far from the first time the agency has faced scrutiny. 

In addition to its well-documented failures in responding to Hurricane Katrina, the agency recently targeted supporters of President Donald Trump in the wake of Hurricane Milton in 2024. “A FEMA supervisor told workers in a message to ‘avoid homes advertising Trump’ as they canvassed Lake Placid, Florida to identify residents who could qualify for federal aid,” reported the Daily Wire. As a result of this order, at least 20 homes were skipped over and not given the opportunity to qualify for FEMA assistance, according to the Daily Wire. 

In response to the politicization of Hurricane Milton and alleged failures in responding to Hurricane Helene in western North Carolina, Trump said he would abolish FEMA, a position he has since walked back. 

Still, the president might better serve the public by reconsidering his position on the matter. As Reason’s Editor in Chief Katherine Mangu-Ward writes, “FEMA has given Americans every reason to believe it is highly politicized, a poor steward of federal resources, bad at establishing priorities, and often unable to communicate clearly to people in distress.” 

FEMA’s latest controversy proves this point yet again. The solution is fewer government agencies that can be weaponized—not more.

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