Universities Sound Alarm as GSA Anti-DEI Rule Threatens Federal Grants

A proposed certification from the General Services Administration would require every organization receiving federal funds to pledge it does not operate diversity, equity, and inclusion programs — and higher education is pushing back hard.

More than two dozen associations, including the American Council on Education, the Association of American Universities, and the American Association of University Professors, have formally urged GSA to withdraw the proposal. The comment period closed with over 22,000 public submissions, an unusually high volume that signals the depth of concern across the sector.

What the Certification Requires

Published by GSA in January 2026, the proposed change to SAM.gov registration would mandate that all federal financial assistance recipients — an estimated 222,760 entities — certify compliance with executive orders the administration says prohibit "unlawful discrimination." Specifically, the certification flags race-based scholarships, cultural competence requirements, diversity statements in hiring, and "overcoming obstacles" narratives as potentially illegal.

The language extends beyond grants to cover cooperative agreements, loans, insurance, and direct appropriations. Any institution accepting federal student aid would be swept in.

Why the False Claims Act Is the Real Threat

The Association of American Universities warned that if an institution certifies in good faith but later runs afoul of the government's interpretation, that certification "could be deemed false and material to every federal payment made during the certification period." The result: potential liability under the False Claims Act, which carries treble damages and per-violation penalties.

"What they're asking you to certify is that you are in compliance with their interpretation of a law, not with what the actual law says," said Jon Fansmith of the American Council on Education.

ACE President Ted Mitchell added that the proposal relies on legal interpretations "that are the subject of current federal litigation and have not yet been resolved by the courts."

What Grant-Funded Institutions Should Do Now

Research universities operate hundreds or thousands of active federal grants, many through NIH. A compliance misstep under this framework could cascade across an institution's entire portfolio. Democratic attorneys general from multiple states, led by California AG Rob Bonta, have also challenged the proposal as an attempt to coerce recipients into abandoning lawful programs.

Grant seekers and institutional compliance officers should audit scholarship criteria, hiring language, and training programs against the certification's specific prohibitions now — regardless of whether the rule takes effect. Tools like grantedai.com can help institutions track which of their active grants carry the highest exposure.

For deeper analysis of how this certification interacts with state-level anti-discrimination laws, visit the Granted blog.