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.

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, tribal and territorial governments to help them protect American citizens”, Fema states on its website.

However, Reuters said at least $1.9bn of this funding was conditional on states following Department of Homeland Security conditions laid out in April, saying states will not cut “commercial relations specifically with Israeli companies or companies doing business in or with Israel” to qualify, according to 11 agency grant notices it reviewed.