Session Information: In recent weeks, President Trump signed a flurry of Executive Orders implementing a wide array of administration policies related to diversity, equity, and inclusion (DEI) initiatives designed to ban both public- and private-sector programs encouraging DEI and targeting federal contractors and grant recipients that advance DEI and environmental justice. New requirements for federal award recipients to certify – under the threat of criminal penalties – that they do not operate any “illegal” DEI programs is causing palpable consternation in segments of the nonprofit community.
The White House also issued a memorandum directing the heads of executive agencies to “review all funding that agencies provide to NGOs,” with a stated goal “to stop funding NGOs that undermine the national interest.” In addition, Attorney General Pam Bondi directed the DOJ to “investigate, eliminate, and penalize” private companies and universities (including nonprofits) that have “illegal” DEI programs. Despite the litigation challenges in the courts, these new directives have raised significant concern among nonprofit executives about the legality of their DEI efforts and the future of their organizations’ funding secured (directly and indirectly) through federal grants, cooperative agreements, and contracts.
