GSA Issues New Certification Requirement For Recipients Of Federal Financial Assistance

In response to President Trump's Executive Orders taking action against "illegal DEI" programs, individual federal agencies have begun incorporating certification requirements into grant programs, including the General Services Administration ("GSA"). On January 28, 2026, the GSA announced for public comment its intent to issue a new certification that recipients of federal financial assistance must sign as a condition of receiving federal funds. This certification would require recipients to affirm their commitment to comply with the U.S. Constitution, all applicable federal laws, and relevant executive orders prohibiting unlawful discrimination based on race or color in the administration of federally funded programs. The comment period closes on March 30, 2026.

The certification carries significant implications for organizations that receive or are seeking to receive federal financial assistance, particularly those with diversity, equity, inclusion, and accessibility ("DEIA") programs or initiatives. Notably, the certification makes clear that federal anti-discrimination laws extend to any program or initiative involving discriminatory practices, irrespective of whether such program operates under the DEIA label.

The certification identifies several categories of DEIA-related practices that may constitute unlawful discrimination under federal law:

• Preferential Treatment Based on Race or Color. The certification addresses programs that grant preferential treatment on the basis of race or color. Examples include race-based scholarships or programs, preferential hiring or promotion practices, and access to facilities or resources based on race or ethnicity. Notably, the certification also encompasses practices that may operate as proxies for race-based preferences, such as the use of "cultural competence" requirements, "overcoming obstacles" narratives, or "diversity statements."
• Segregation Based on Race or Color. The certification targets practices that result in segregation on the basis of race or color. This includes race-based training sessions, segregation in facilities or resources, and implicit segregation achieved through program eligibility criteria. This provision suggests that even facially neutral eligibility requirements could come under scrutiny if they effectively segregate participants along racial lines.
• Other Unlawful Uses of Race or Color as Criteria. The certification also addresses other practices that rely on race or color as selection or allocation criteria. Specific examples include race-based "diverse slate" policies in hiring, race-based selection for contracts, and race-based program participation or resource allocation decisions.
• Hostile Training Environments. The certification identifies training programs that stereotype, exclude, or single out individuals based on protected characteristics, or that create a hostile environment, as potentially unlawful. This provision may have far-reaching implications for the types of training content that federally funded organizations can offer or require.
• Retaliation Protections. Finally, the certification addresses retaliation against individuals who oppose DEI practices they reasonably believe violate federal antidiscrimination laws. Specifically, it prohibits adverse actions against employees, participants, or beneficiaries who engage in protected activities related to opposing such practices. Protected activities include raising concerns or filing complaints about discriminatory programs, trainings, or policies, as well as objecting to or refusing to participate in them.

Beyond DEIA, the new certification also addresses compliance with immigration laws and national security requirements. Specifically, with respect to immigration, the proposed revisions require entities to certify that they "[w]ill not knowingly bring or attempt to bring to the United States, transport, conceal, harbor, shield, hire, or recruit for a fee an illegal alien; and will not induce an alien to enter or reside in the United States with reckless disregard of the fact that the alien is illegal." And, concerning national security, the certification requires attestation that the entity "[w]ill not fund, subsidize, or facilitate violence, terrorism, or other illegal activities that threaten public safety or national security."

Organizations that receive or are seeking to receive federal financial assistance should carefully review this new certification and assess their existing programs and policies for compliance. Recipients should pay particular attention to programs that involve race-based preferences, training content that could be viewed as stereotyping or exclusionary, and any policies that use race or color as a factor in hiring, contracting, or resource allocation.

Additionally, organizations should ensure that they have adequate protections in place for individuals who raise concerns about potentially discriminatory DEIA practices. The certification's express inclusion of retaliation protections signals a clear expectation that recipients of federal funds will maintain an environment in which employees, participants, and beneficiaries may voice objections without fear of adverse consequences.

Ballard Spahr's Labor and Employment Group regularly advises employers on compliance-related matters, including the evolving requirements associated with federal financial assistance. We will continue to monitor developments from the GSA and the broader implications of changes to the certification requirements. Please contact us if we can assist you with these matters.

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