This post was updated July 3 at 12:29 a.m.

UC President Michael Drake announced in a Wednesday letter that student governments at all UC campuses are banned from boycotting companies associated with Israel.

The letter followed directives from the National Science Foundation and National Institutes of Health that promise to deny grants to organizations with anti-Israel boycotts and diversity, equity and inclusion initiatives. The University has previously expressed opposition to boycotts and divestment from Israel, including in an April 2024 statement released the day after the Palestine solidarity encampment at UCLA – the organizers of which called on the UC to divest from companies with ties to the Israeli military – began. 

[Related: Encampment led by students in support of Palestine begins outside Royce Hall] 

The NIH awarded the UC $2.6 billion last academic year and awards UCLA roughly $500 million in research grants each year, according to the UCLA Library. 

“The University of California has once again affirmed its opposition to boycotts of companies associated with a particular country,” said UC spokesperson Rachel Zaentz in a written statement. “While our community members have the right to express their viewpoints, financial boycotts are inconsistent with UC’s commitment to sound business practices, academic freedom and the free exchange of ideas.”

Drake said in the letter that rights that protect free expression are distinct from the University’s responsibility “to conduct their financial affairs in a manner consistent with University policy and applicable law.” 

He added in the letter that boycotting companies on the basis of their association with specific countries does not align with standards of sound business practices and legal requirements under UC policy.

The ban applies to student governments across the UC – including the Undergraduate Students Association Council – as well as other university entities, Drake said in the letter. The ban will not apply to student clubs, as their political affiliations and financial decisions are not representative of their respective campuses.

Kira Stein, the chair of the UCLA Jewish Faculty Resilience Group, said in a statement over text message that official student government boycotts against specific countries are “discriminatory and divisive” and do not promote peace. She added that the University’s decision promotes inclusivity and respectful discourse in an academic setting. 

“Since UC student governments are funded by student fees and operate with university recognition, it is both reasonable and necessary that they represent all students and refrain from discriminatory practices,” Stein said.

USAC passed a resolution in February 2024 endorsing the Boycott, Divestment and Sanctions movement against Israel. The resolution alleged that Israel is engaged in “apartheid, ethnic cleansing, and genocide,” as well as called on the UC Board of Regents to divest from companies associated with Israeli weapons manufacturing.

The council also previously amended its bylaws to freeze the transfer of funds into its endowment until the University divests from companies participating “in the violation of human rights.

Both the resolution and the bylaw change were proposed by then-USAC Cultural Affairs Commissioner Alicia Verdugo, who resigned in February amid allegations that their office deliberately avoided hiring Jewish staffers.

USAC President Diego Emilio Bollo declined to comment on Drake’s directive. 

[Related: USAC passes resolution endorsing Boycott, Divestment and Sanctions movement]

As of May 2024, the UC’s Chief Investment Officer Jagdeep Singh Bachher said the funds which the BDS movement has called to be divested make up $32 billion – roughly one-fifth of the University’s assets.

[Related: UC Regents disclose investments in weapons manufacturers amid calls to divest]

The Department of Justice launched an investigation against the UC over allegedly treating its employees in an antisemitic manner in March. The department also announced in March that the Task Force to Combat Antisemitism would visit 10 universities – including UCLA – to investigate and have conversations with members of the university community to determine if antisemitism has occurred on campus.

[Related: Department of Justice opens investigation into antisemitism allegations at UC]

The head of the task force said in a May interview on Fox News that the UC should expect discrimination lawsuits – as well as financial repercussions – for allegedly allowing antisemitism on its campuses.

[Related: Federal official claims Trump administration intends to sue UC for discrimination]

UC Davis suspended and pulled over $40,000 in funding from its Law Students Association in March after it passed a resolution calling for divestment from Israel. UC Davis said in a statement to the Los Angeles Times that student governments are required to provide support – financial and otherwise – in a neutral manner.

Zaentz said in the emailed statement that the president’s letter “reinforces UC’s unwavering commitment to academic discourse, research, and innovation that improve the lives of Americans across the country. ”

[Related: Professors express concern over research, programs following federal funding cuts]

The UC announced it would be eliminating the requirement of diversity statements in its hiring process in March.

[Related: UC announces elimination of diversity statements in hiring processes]

“We will continue to embrace and celebrate Californians from a variety of life experiences, backgrounds, and points of view,” said UC Board of Regents Chair Janet Reilly in an emailed statement.