Over 1,300 Nonprofits Challenge GSA's Federal Funding Certification Rules

A coalition of 1,334 nonprofit organizations has formally objected to proposed changes by the General Services Administration that would impose new certification requirements on all recipients of federal funding. The letter, coordinated by the National Council of Nonprofits, represents one of the largest organized responses to a federal rulemaking proposal affecting the grants community.

What the Proposed Certifications Require

On January 28, the GSA published proposed amendments to the "Financial Assistance General Certifications and Representations" in SAM.gov — the federal system where organizations must register to apply for any grant or financial assistance. The proposed certifications would require recipients to pledge they do not operate diversity, equity, and inclusion programs, do not maintain race-based scholarships, and do not use "diversity statements" in hiring. Organizations would also need to certify compliance with immigration enforcement provisions, pledging they do not knowingly harbor or recruit undocumented individuals.

The proposals carry significant legal weight. Under the False Claims Act, organizations found to have made false certifications could face treble damages — a provision the Association of American Universities has called a "potentially existential" financial risk for institutions.

Why 22,000 Comments Poured In

The public comment period, which closed April 1, drew approximately 22,000 responses. Major higher education groups including the American Council on Education, the Association of Public and Land-grant Universities, and PEN America submitted detailed objections. Higher ed institutions argue the certification language is so vague that everyday activities — mentoring programs, cultural events, outreach to underrepresented communities — could be construed as violations.

The nonprofit sector's concerns extend beyond DEI. Organizations worry the certifications create a chilling effect on mission-driven work, particularly for groups serving immigrant communities or operating programs that could be recharacterized under the broad new definitions.

What Grant Seekers Should Do Now

Grant-seeking organizations should review the proposed certification text and assess how current programs align with the proposed requirements. GSA has not yet issued a final rule, and the timeline for implementation remains uncertain. Organizations tracking this issue can find related analysis on grantedai.com.

For deeper coverage of how these certification changes could reshape the federal grants landscape, in-depth analysis is available on the Granted blog.