As previously discussed on PERKS, on January 21, 2025, the Trump Administration published Executive Order 14173, which purports to end “Illegal DEI.” In furtherance of that EO, on February 18, 2026, the General Services Administration (GSA) issued a proposal to update the information that federal grantees must provide to the System for Award Management (SAM) to apply for federal grants. The proposal can be viewed here: Regulations.gov

SAM will now require potential grantees to certify that they do not engage in or have DEI or DEIA practices or programs that this administration considers to be illegal. Per the proposal, this includes:

  1. Granting preferential treatment based on race or color, such as race-based scholarships or programs, preferential hiring or promotion practices, or access to facilities or resources based on race or ethnicity, including through the use of “cultural competence” requirements, “overcoming obstacles” narratives, or “diversity statements;”
  2. Segregation based on race or color, such as race-based training sessions, segregation in facilities or resources, or implicit segregation through program eligibility;
  3. Other unlawful use of race or color as criteria, such as race-based “diverse slate” policies in hiring, race-based selection for contracts, or race-based program participation or resource allocation;
  4. Training programs that stereotype, exclude, or single out individuals based on protected characteristics or create a hostile environment; or
  5. Retaliation by taking adverse actions against employees, participants, or beneficiaries because they engage in protected activities related to opposing DEI practices they reasonably believe violate federal antidiscrimination laws. Protected activities include raising concerns or filing complaints about, or objecting to or refusing to participate in, discriminatory programs, trainings, or policies.

Companies seeking Federal financial assistance should be aware of these certifications and requirements. Additionally, it is expected that this proposal may provide a roadmap of the certifications that may be required from Federal contractors and other entities that work with the Federal government.

This proposed rule is subject to a 60-day comment period. Companies and individuals who wish to speak out against this proposal should do so. Simultaneously, any companies that work with the Federal government, or seek Federal financial assistance, should review their policies and practices to ensure that they will be able to make these certifications in the future.