GSA Proposes DEI Certification Requirement for 222,000 Grant Recipients

The General Services Administration has proposed a rule that would require every organization receiving federal funds — an estimated 222,760 entities including universities, school districts, hospitals, and nonprofits — to certify that they do not maintain diversity, equity, and inclusion programs and are not knowingly employing undocumented workers.

The proposal represents the broadest attempt yet to enforce the administration's executive orders on DEI across the federal grant ecosystem. Public comments are open through March 30, 2026.

What the Certification Covers

The rule defines prohibited practices broadly. Organizations would need to certify they do not operate race-based scholarships, "cultural competence" requirements, "overcoming obstacles" narratives in hiring, or diversity statements. The immigration component requires certification that the organization is not knowingly hiring or recruiting undocumented staff.

False certification could expose organizations to False Claims Act liability — a provision that university general counsels have flagged as particularly consequential, given the treble damages the statute allows.

Which Organizations Are Affected

The scope extends far beyond higher education. Any entity receiving federal grants, contracts, or financial assistance would be subject to the requirement. That includes K-12 school districts receiving Title I funds, community health centers with HRSA grants, nonprofits with HUD or DOJ funding, and research institutions with NIH or NSF awards.

For research universities, the certification creates a direct tension with faculty recruitment practices that many institutions consider essential to scientific excellence. Several major research associations have signaled they will submit comments opposing the rule.

What Grant Seekers Should Do Now

Organizations currently holding or applying for federal grants should review their internal policies against the proposed certification language before the March 30 comment deadline. Legal counsel should assess which existing programs might fall under the rule's definitions.

The proposal is not yet final. The public comment period gives organizations an opportunity to shape the rule's scope and definitions. Granted's blog provides ongoing coverage of federal grant policy changes and their practical implications for applicants.