By Cassie Alfheim and Amanda Bowman
BLOG OVERVIEW: On January 28, 2026, the General Services Administration (GSA) proposed changes to SAM registration requirements that would add a DEI certification for federal financial assistance recipients, including universities and organizations receiving federal grants or loans. The proposed certification implements Executive Order 14173 and DOJ guidance by requiring entities to certify they do not operate programs promoting illegal diversity, equity, and inclusion (DEI) that violate federal anti-discrimination laws, with false certifications carrying potential liability under the False Claims Act. While the current proposal targets the Financial Assistance Reps & Certs section of SAM.gov registration, federal contractors who also receive financial assistance may be affected, and a similar DEI certification requirement for federal contractors specifically is expected in the near future. Public comments on the proposed Information Collection Request are due by March 30, 2026.
On January 28, 2026, the General Services Administration (GSA) published an Information Collection Request (ICR) aimed at implementing a certification requirement around “illegal DEI” practices. Titled “Information Collection; System for Award Management Registration Requirements for Financial Assistance Recipients,” the ICR updates existing registration requirements in the System for Award Management (SAM) for entities seeking, or receiving, federal financial assistance awards, such as grants or loans. The certification requirement implements 2025 Guidance from the Department of Justice (DOJ), as well as Executive Order (EO) 14173. While this ICR generally applies only to financial assistance recipients, a similar certification for federal contractors is expected in the near future.
ICRs are required under the Paperwork Reduction Act of 1995 (PRA), which puts limits on federal agencies’ ability to request information from or put recordkeeping requirements on the public. Specifically, before a federal agency can request information from the public, or substantively revise a current data collection, it must give the public an opportunity to comment on the proposal and get approval from the Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA).
Public comments for the current ICR are due by March 30, 2026.
System for Award Management (SAM)
The System for Award Management (SAM) is a public database maintained by the General Services Administration (GSA) to verify and manage entities seeking government contracts, grants, or other financial awards.
Individuals or companies seeking to receive funding from the federal government must register in the SAM database, with a requirement to annually renew. The registration (and renewal) process has historically asked for administrative information such as legal business name, tax IDs, industry codes, payment routing information, etc., as well as a section devoted to federal representations and certifications (“Reps & Certs”). As outlined in the Entity Registration Checklist, there are two main paths in the SAM registration process – Financial Assistance Awards and All Awards:
- Financial Assistance Awards includes a Reps & Certs section specific to entities seeking grants and loans (will be referred to as Financial Assistance Reps & Certs).
- All Awards includes sections for entities seeking federal prime contracts, including a Reps & Certs section specific to federal contractors (will be referred to as Contract Reps & Certs).
Notably, the “All Awards” option also provides the opportunity for entities to indicate interest in federal financial assistance:
“Do you wish to apply for a federal financial assistance project or program, or is your entity currently the recipient of funding under any federal financial assistance project or program? (yes or no)
If yes, the financial assistance representations and certifications will display. You must read and certify your entity attests to the accuracy of the representations and certifications listed.”
If this option is enabled, the entity is also required to complete the Financial Assistance Reps & Certs section. It is this section that would be modified by the current ICR, if approved by OIRA. This means certain federal contractors could be subject to this proposed certification as well.
Based on the ICR supporting statement and burden estimate, GSA anticipates that this will impact the 222,760 entities registered in SAM for financial assistance as of January 2026. Note, as of December 6, 2024, SAM had 557,397 companies actively registered for contracts. This difference implies GSA isn’t expecting the proposed changes to impact the entirety of the contractor community – only those who also receive federal assistance.
As mentioned earlier, we believe this ICR is targeting federal financial assistance recipients, including universities. Higher education institutions have been a focal point in recent years and this would be another way for the federal government to ensure universities are complying with non-discrimination laws and initiatives important to the White House.
Why Changes Are Being Proposed
Immediately following President Trump’s second inauguration, the administration prioritized reducing illegal discrimination across federally funded programs and institutions by issuing Executive Order 14173 “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The proposed SAM changes would execute EO 14173’s Section 3(b)(iv)(B) (see below) direction to revise the current government process of gathering federal fund recipient information to include a required certification regarding diversity, equity, and inclusion (DEI) programs:
(iv) The head of each agency shall include in every contract or grant award:
(A) A term requiring the contractual counterparty or grant recipient to agree that its compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code; and
(B) A term requiring such counterparty or recipient to certify that it does not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws. [Emphasis added]
In addition to EO 14173, the ICR references a letter Attorney General Pam Bondi sent to all federal agency heads entitled, “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination.” As we discussed in a previous DCI blog, Attorney General Bondi reiterated the DOJ’s commitment to rooting out federal funding recipients’ unlawful discrimination under the guise of DEI programs, in alignment with the White House.
The Attorney General’s memo was an initial glimpse of the coordinated government enforcement approach to investigating unlawful discrimination. The proposed changes to SAM’s registration and renewal process would give the federal government an opportunity to screen all agencies’ federal financial assistance funding recipients for potentially discriminatory DEI programs. Entities that decline to eliminate their illegal DEI programs risk losing funding and potential debarment, while those that falsely certify could face significant liability under the False Claims Act.
Using SAM as the implementation vehicle centralizes the certification requirement and applies it at the point of registration, rather than through agency-specific award language. This approach could streamline administration across agencies. It remains possible that formal contract clauses or flow down requirements may be required in future rulemaking.
Proposed Changes Related to Executive Order 14173
The ICR proposes four substantive additions to the Financial Assistance Reps & Certs section, with one item in particular implementing EO 14173’s certification requirement, borrowing heavily from examples within the DOJ Guidance. Proposed item six (6) requires entities to affirmatively certify that they:
“(6) Will comply with the U.S. Constitution, all Federal laws, and relevant executive orders prohibiting unlawful discrimination on the basis of race or color in the administration of federally funded programs (See Titles VI and VII of the Civil Rights Act of 1964, the Equal Protection Clause of the Fourteenth Amendment, and 2 C.F.R. § 200.303 Internal controls). Federal antidiscrimination laws apply to programs or initiatives that involve discriminatory practices, including those labeled as Diversity, Equity, and Inclusion (DEI) or “diversity, equity, inclusion, and accessibility” (DEIA) programs. Entities that receive federal funds, like all other entities subject to federal antidiscrimination laws, must ensure that their programs and activities comply with federal law and do not discriminate on the basis of race or color. Examples of practices that may violate applicable Federal anti-discrimination laws include:
- (i) 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;”
- (ii) Segregation based on race or color, such as race-based training sessions, segregation in facilities or resources, or implicit segregation through program eligibility;
- (iii) 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;
- (iv) Training programs that stereotype, exclude, or single out individuals based on protected characteristics or create a hostile environment; or
- (v) 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;” [Emphasis added]
Several aspects of this item raise questions and potential inconsistencies. Notably, the list of example practices framed as illegal actions are caveated that they “may” violate federal law. This mirrors Attorney General Bondi’s guidance memo to federal agencies.
In addition, the proposed certification focuses solely on race and color and does not reference sex or other protected characteristics, despite the body of item six (6) referencing Title VII of the Civil Rights Act. The DOJ guidance addresses unlawful discrimination based on race, color, national origin, sex, religion, and other protected characteristics for federal funding recipients.
Finally, it is worth highlighting that protected class categories are used inconsistently in the supporting document (e.g., “race or color,” “race or ethnicity,” and “race-based”). While the law implicitly protects individuals on the basis of ethnicity, Title VII and longstanding case law explicitly delineate race and color as separate and distinct protected classes. The use of these terms interchangeably could create ambiguity about how protected classes beyond race, like color, ethnicity, or even national origin, are impacted by this specific certification.
Other Proposed Changes
In addition to the anti-discrimination provision in proposed item six (6), the ICR introduces three additional items or references. These do not appear to be added as a result of EO 14173 or the DOJ DEI guidance but reflect broader federal enforcement initiatives. Including these provisions likely reflects an effort to centralize compliance for federal financial assistance recipients. These include:
- (8) Will 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 (See 8 U.S.C. § 1324 and 2 C.F.R. § 200.303 Internal controls);
- (9) Will not fund, subsidize, or facilitate violence, terrorism, or other illegal activities that threaten public safety or national security (See 2 CFR 200.303 Internal controls);
- Administrative False Claims Act of 2023, 31 U.S.C. § 3801 et seq. was added to the final ICR item that outlines laws, executive orders, regulations, and policies to which funding recipients are expected to abide.
Conclusion
DCI will continue to monitor developments and provide updates as more information becomes available relating to the current ICR, as well as the Interim Final Rule, Restoring Merit-Based Opportunity in Federal Contracts, that DCI anticipates will implement new certification requirements for federal contractors specifically.
Entities in both SAM funding categories (i.e., federal contracts and financial assistance) should stay engaged to ensure timely compliance with these evolving requirements. The public is encouraged to comment on the proposed ICR by March 30, 2026.
