GSA Proposes Sweeping New Certifications for Federal Grantees: What You Must Do Now

Hook

On January 28, 2026, the General Services Administration (GSA) unveiled proposed changes that could fundamentally alter the landscape for all recipients of federal financial assistance—including grants, cooperative agreements, and loans. Published in the Federal Register, these changes would require every entity receiving federal funding through the System for Award Management (SAM.gov) to make new, far-reaching certifications about their practices. The likely impact: every university, nonprofit, or small business seeking federal funds must assess their own compliance, especially regarding antidiscrimination, diversity, equity, and inclusion (DEI) programs, and prepare for intensified oversight—with potential immediate effects after the rule is finalized.

Context

Until now, certification requirements for federal grantees have largely been determined agency by agency, resulting in a patchwork approach. The GSA’s proposed rule—rooted in Executive Order 14173 and a DOJ July 2025 memorandum—is poised to make these requirements universal and centrally enforced by making them part of the mandatory SAM.gov registration process.

As a prerequisite, every federal awardee must hold an active SAM account. This places the proposed certifications at the very gateway to federal assistance, covering a huge swath of entities—from major research universities and national nonprofits to emerging small businesses and community programs. Unlike procurement contracts (covered by a parallel, pending proposal), anybody applying for federal grants or cooperation agreements must comply.

The proposed certifications address three core areas:

• Antidiscrimination & DEI: Attestation of compliance with federal anti-discrimination laws, with explicit notes that some DEI practices (race-based scholarships, diverse hiring slates) may be viewed as noncompliant.
• Immigration: Certification that no recipient will recruit, harbor, or encourage unauthorized immigrants.
• Terrorism: Certification against subsidizing or facilitating terrorism or activities threatening public safety.

Public comments are open until March 30, 2026, offering stakeholders a chance to influence the final rule.

Impact

Researchers and Universities

Universities will need to review all DEI initiatives—including admissions, hiring, and training—to ensure they are not interpreted as unlawful under the new federal standard. Some activities previously considered compliant (e.g., targeted scholarships or programming for underrepresented groups) may now be at risk of triggering False Claims Act liability or funding loss.

Nonprofits

Nonprofits face heightened compliance burdens. Certification extends to a range of human resources and service practices. National advocacy groups, such as the National Council of Nonprofits, warn these requirements may disrupt core programming, especially initiatives targeting equitable service provision. The risk: an honest misstep in a well-intentioned program could bring substantial penalties, up to and including funding revocation or legal exposure.

Small Businesses

For SBIR recipients and businesses relying on federal grants, the central challenge will be procedural. All hiring and outreach efforts must be scrutinized to avoid any suggestion of unlawful preference or discrimination. Given the broad language of the certifications—particularly around DEI—a proactive audit is recommended. Note: contractors are not immediately covered, but a similar rule is under review and could soon apply.

In all sectors, leadership and compliance officials must be prepared for substantial documentation and policy review. Failure to fully adhere could not only jeopardize immediate funding opportunities but also open up potential federal investigations or lawsuits.

Action

Here’s what grant seekers should do right now:

1. Review Current Practices: Start an immediate, privileged review of your organization’s DEI, hiring, admissions, and programming policies. Focus especially on any implementation or communications that make use of race, color, or similar protected characteristics as criteria.
2. Consult Legal Counsel: Ensure your organization has up-to-date legal advice, specifically tailored to new interpretations of federal anti-discrimination law as reflected in the proposed requirements.
3. Prepare for Documentation: Expect increased demands for internal records documenting compliance as a condition of submitting or maintaining SAM.gov registration.
4. Engage in the Comment Period: Submit formal comments or requests for clarification to GSA before March 30, 2026. Your input can help shape the final rule, especially by pointing out ambiguities or unintended nonprofit sector impacts.
5. Monitor for Updates: Final rule language or effective dates may change quickly as GSA considers feedback and moves to finalize the requirements. Sign up for updates at regulations.gov and monitor official communications from your grants office or sponsored programs office.

Outlook

As this proposal is open for public input, the final version could still evolve. Key areas for watchers include possible expansion to federal contractors, clarity on exactly which practices are now forbidden, and the timeline for required compliance. The new certifications, if implemented as proposed, will raise the stakes for every organization seeking federal financial assistance in 2026 and beyond.

For help staying compliant and preparing competitive grant applications in this changing environment, Granted AI offers up-to-date tracking, alerts, and best-practices guidance tailored to your sector.