ADVOCACY UPDATE: Federal Grant Changes

The United States General Services Administration (GSA) has proposed drastic changes to the System for Award Management (SAM) that would significantly alter the eligibility, process and execution of federal grant programs. Nonprofits have until March 30 to oppose these changes.

The System for Award Management is the online portal through which nonprofits and other entities register and apply for grants and contracts from the federal government. In a notice published January 28, the GSA proposed changes to SAM that, if adopted, would require nonprofits and other federal grant recipients to sign new certifications in order to apply for or receive federal funding.

What does this mean for nonprofits?

In order to register for SAM or be eligible for federal grants, nonprofits and other grant or contract recipients would be required to certify that they do not engage in “illegal” DEI or other related activities. Examples include using criteria such as cultural competence, lived experience, “overcoming obstacles” or “diversity statements”; training sessions that exclude participants based on race or other protected characteristics; “diverse-slate” policies in hiring, and others. 

Entities would also have to certify that they 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” or “fund, subsidize, or facilitate violence, terrorism, or other illegal activities that threaten public safety or national security.”

This directive, if adopted, would cause significant harm for nonprofits and the people and communities they serve. 

The GSA proposal could subject organizations to significant risk of significant financial or legal penalties, and could cause many capable organizations to forego participating in the federal grants process altogether, to the detriment of the communities they serve.

Learn more: The National Council of Nonprofits has prepared a comprehensive summary and comment guide regarding the proposal.

What actions can be taken?

The deadline for public comment on the GSA proposal is March 30, 2026. 

1. Sign your organization onto a nationwide letter opposing the proposed changes. 
2. Submit your own comments in opposition to the changes. See this guide from the National Council of Nonprofits for assistance.
3. Contact New Jersey’s United States Senators, Cory Booker and Andy Kim, and your own Congressional Representative, to ask for their help in protecting nonprofit grantees and the communities they serve.