24 Attorneys General Challenge GSA's Anti-DEI Grant Certification

A coalition of 24 state attorneys general, led by California's Rob Bonta and New York's Letitia James, filed a formal comment letter on April 1 demanding the General Services Administration withdraw a proposed rule that would require every federal grant recipient in the country to certify it does not operate diversity, equity, and inclusion programs.

The proposal would affect universities, hospitals, nonprofits, state agencies, and any other entity that receives federal funding — a sweeping expansion of the administration's anti-DEI campaign into the grant ecosystem.

How the Certification Would Work

Under the proposed amendment to SAM.gov's Financial Assistance General Representations and Certifications, organizations applying for federal grants would need to attest that they do not maintain programs the administration defines as "discriminatory practices" — including race-based scholarships, cultural competence requirements, diversity statements, and "overcoming obstacles" narratives. A separate certification would require organizations to confirm they are not knowingly employing undocumented staff.

The stakes are severe: organizations could face liability under the False Claims Act for violating the pledges, even if their programs were lawful when established. The Association of American Universities warned that "if an institution certifies in good faith but is later found to have operated a program that the government considers a violation, that certification could be deemed false and material to every federal payment made during the certification period."

Why the Coalition Says the Rule Is Illegal

The attorneys general raised four legal challenges: the rule violates the Paperwork Reduction Act by failing to justify the added burden; it bypasses the Administrative Procedure Act by exceeding GSA's congressional authority; it violates the Constitution's Spending Clause through vague and ambiguous conditions; and it will cause practical harm by chilling lawful services to vulnerable populations.

"GSA wants to scare grant recipients into halting lawful programs that protect Americans from discrimination and unfair roadblocks," Bonta said.

What Grant Applicants Should Watch For

The comment period closed March 30, and GSA has not announced a timeline for finalizing the rule. Grant seekers — particularly universities and nonprofits operating scholarship or mentoring programs — should consult legal counsel now about how existing programs intersect with the proposed definitions. Track updates on policy changes affecting federal grants at grantedai.com.

In-depth analysis of the legal landscape and compliance strategies for grant recipients is available on the Granted blog.