WASHINGTON—President Trump plans to sign an executive order to combat anti-Semitism on college campuses by threatening to cut off federal funds to schools that don’t curb discrimination against Jewish students, according to a senior administration official.

The order, to be signed Wednesday, is designed to target the Boycott, Divest and Sanction Israel movement, popular on college campuses. The Trump administration—along with critics on the left and the right—has long argued BDS is a pernicious form of anti-Semitism akin to...