New Federal Rule Would Require Grant Applicants to Certify Absence of DEI Programs

Hook

The Trump administration has unveiled a sweeping new proposal that could upend the federal funding landscape: universities, nonprofits, small businesses, and other entities seeking grants or financial assistance would soon have to certify that they do not operate any diversity, equity, inclusion, and accessibility (DEIA) programs. The rule, announced by the U.S. General Services Administration (GSA), would impact over 222,000 organizations—with federally supported researchers, educational institutions, and community groups among those facing major compliance questions.

Context

This proposed rule, now open for public comment through March 30, 2026, is part of a larger policy agenda to restrict DEI initiatives throughout the federal government. Under previous guidance, the Trump administration has argued that such programs—whether discretionary scholarships for underrepresented groups, DEI training, or diversity statements for faculty hiring—amount to discrimination under Title VI of the Civil Rights Act. The government now wants every applicant for federal grants, cooperative agreements, loans, and even insurance coverage to certify they are not engaging in any such practices.

This move builds on a contentious history: earlier efforts by the U.S. Department of Education to impose similar requirements stalled after federal courts blocked them in 2025, citing First Amendment and administrative law violations. Recent judicial wins for the administration, including a February 2026 appellate decision lifting some court-imposed obstacles, appear to have emboldened officials to push forward with even broader anti-DEI requirements, this time with language that covers nearly the entire spectrum of federally funded activities.

The policy's reach is vast, touching any organization "doing business with the government" for funding, not just those in education. Observers warn that the proposal's language is so expansive and vaguely defined that it risks ensnaring a wide range of standard practices, from cultural competence programs to mentorship initiatives for historically marginalized groups.

Impact

For Researchers and Universities

Federal research grants from agencies such as NSF and NIH frequently require documentation of inclusive practices and support for underrepresented scholars. These practices could now be scrutinized: race-based recruitment, DEI training for research teams, and even application questions about overcoming adversity could all pose compliance risks. Any certification errors could jeopardize grant awards or even trigger civil or criminal penalties.

For K-12 and Higher Education

Institutions with race-conscious admissions, scholarships, or faculty incentives will need to rapidly audit every policy for compliance. While some Supreme Court rulings have already limited certain DEI programs in education, this federal rule would dramatically expand assessment to domains like campus climate initiatives, hiring, and faculty development.

For Nonprofits and Small Businesses

Organizations that contract with the federal government or rely on federal grants—especially those serving specific demographic groups—must scrutinize their missions and programming. Training sessions, narrative requirements in applications, or services tailored by race, ethnicity, gender, or other protected characteristics could all trigger violations under a broad interpretation of the rule.

In all cases, the possibility of retroactive enforcement and ambiguous definitions—such as what constitutes a "hostile environment" created by DEI programs—spreads risk unevenly, potentially chilling efforts even when programs are otherwise legal or beneficial.

Action

With the public comment period open until March 30, 2026, all organizations potentially impacted should:

• Review the GSA proposal in detail (see the text here).
• Engage legal counsel to audit internal policies and programs for potential compliance gaps.
• Submit a public comment expressing concerns, requesting clarifications, or challenging ambiguous elements—individual and organizational comments may be made via Regulations.gov.
• Prepare documentation now for future certifications, as retroactive enforcement of grant compliance is possible.

Additionally, keep communication lines open with program officers at federal agencies and consider joining coalitions (such as university associations or nonprofit networks) that are preparing sector-specific guidance.

Outlook

This rule is far from final, but its broad scope and potential penalties make it essential that all would-be grant seekers pay close attention. Legal challenges are likely, especially given the previous setbacks in federal courts and the conflicting signals from the Department of Justice. However, sustained pressure could reshape or delay the final rule—so participating in the comment process, staying informed, and preparing compliance strategies are crucial in the months ahead.

Granted AI will continue to monitor regulatory changes like this to help you stay compliant and competitive in the evolving federal funding environment.