Proposed rule further limits DEI in federal grants

The Office of Management and Budget has proposed a rule affecting USDA and agencies across the federal government by targeting awards that would advance the “‘woke’ policy agenda” and Diversity, Equity and Inclusion.

“Collectively, these [DEI] policies wasted a great amount of taxpayer resources and caused great harm to public trust in government,” the proposal says. It adds that revisions to the guidance will improve “transparency, accountability, and oversight.” 

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President Donald Trump signed an executive order on the first day of his second term requiring OMB to terminate DEI programs. The proposal also requires “discretionary awards [to] advance the President’s policy priorities” — which senior appointees will review.

The proposal to tighten the Guidance for Federal Financial Assistance would continue to enforce for grant recipients the Drug-Free Workplace Act and a Reagan-era executive order saying that federal program participants who have been debarred or suspended from one agency are debarred government-wide.