GSA Proposes New DEI and Immigration Certifications for Federal Grant Recipients

Hook

The U.S. General Services Administration (GSA) has proposed a sweeping new policy: every entity applying for federal grants or cooperative agreements will soon need to certify—during their SAM.gov registration—that they do not operate illegal DEI (Diversity, Equity, Inclusion) programs or violate federal immigration and anti-terrorism laws. The proposed rule, now open for public comment until March 30, 2026, is poised to impact over 222,000 organizations annually, raising the stakes for every renewal or new registration.[1]

Failing to comply—or certifying falsely—could not only block your grants, but also trigger steep liabilities under the False Claims Act (FCA), including treble damages and exposure to whistleblower lawsuits. For universities, nonprofits, and businesses involved in DEI initiatives, this development signals immediate action is needed.

Context

The push arises from Executive Order 14173, issued in January 2025, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity."[1] The order, further clarified by DOJ guidance in July 2025, deems certain DEI practices unlawful under federal anti-discrimination statutes—specifically, race-based scholarships, diversity statements in hiring/admissions, training involving stereotypes, and programs that exclude participants based on protected traits.[2]

This GSA proposal would operationalize those policies through the federal assistance system. If finalized, new certifications are expected to be required during all SAM.gov financial assistance registrations and renewals—affecting universities, research organizations, nonprofits, as well as small businesses that seek grants or contracts with federal agencies.[1]

The burden is real: the GSA estimates it will require about 2.75 hours per entity to review the new questions, audit internal programs for compliance, and update documentation. Stakeholder feedback already signals deep unease—especially in higher education, where American Council on Education and peer associations warn this policy "creates significant uncertainty" and could have chilling effects on campus diversity initiatives.[4]

Impact

For Grant Seekers (Researchers, Nonprofits, Small Businesses):

• Compliance Review Required: If you receive federal financial assistance, you must ensure your organization's DEI, hiring, and training programs fully align with the DOJ's most recent interpretations of Title VI, Title VII, and related anti-discrimination laws. Even well-intentioned programs (e.g., scholarships for students from underrepresented groups) may now present legal risks if they use protected-class criteria.[2]
• FCA Liability: As previously seen with COVID-19 relief programs, the Department of Justice is prioritizing False Claims Act enforcement, especially for grant recipients who misrepresent compliance. Deputy Assistant Attorney General Brenna Jenny's speech in February 2026 specifically flagged DEI as an area of rising whistleblower risk and DOJ attention.[3]
• Administrative Burden: The time and resources required to audit, update, or sunset non-compliant programs will be significant for many organizations—especially small nonprofits or research teams with limited legal support.

For Higher Education and National Nonprofits:

• Policy Overhaul Needed: Programs must be reviewed to check whether any requirement, training, or award is based on race, gender, or other protected status rather than neutral, merit-based criteria. Cultural competence mandates or diversity hiring preferences are especially vulnerable.
• Reputational and Political Scrutiny: This federal shift marks a broader pivot away from conventional DEI efforts, paralleling related state-level and university battles. Failure to adapt could jeopardize eligibility and public standing.

Action

What You Should Do Now:

1. Conduct an Immediate Audit of DEI Policies: Review all grant-supported programs, scholarships, hiring practices, and required trainings for compliance with evolving federal rules. Pay attention to criteria tied to race, ethnicity, gender, or similar factors.
2. Train Your Teams: Ensure all staff involved in recruiting, grant writing, and compliance understand the new requirements and DOJ's definitions of illegal discrimination.
3. Prepare for Certification Updates: Have documentation ready to support your SAM.gov certifications—especially for your next registration or renewal cycle after March 2026. Consider consulting legal counsel on areas of potential exposure.
4. Submit Comments: If you believe the rule will have unintended consequences or needs clarifying language, file a public comment before March 30, 2026. The GSA is legally required to review and respond to all substantive input.[1]

Outlook

If finalized, these new certifications would dramatically raise the compliance bar for all recipients of federal financial assistance, particularly around DEI, immigration, and anti-violence requirements—potentially shifting how institutions design programs and train staff. Watch for further DOJ guidance, final GSA rulemaking after the public comment window, and legal challenges from higher education and advocacy groups seeking more clarity or carve-outs. Stay alert for evolving FCA enforcement trends and community updates that may affect your ongoing funding eligibility.

Granted AI helps track policy changes and streamline compliance so you can focus on your mission, not paperwork.