The General Services Administration (GSA) in early March, 2026, proposed changes to the federal System for Award Management to implement Executive Order 14173 (EO 14173), issued on January 21, 2025. The directive to end “illegal preferences and discrimination” among all recipients of federal financial assistance,  repeals the 1965 EO #11246 on affirmative equal employment opportunity actions  and creates new obligations for federal contractors, subcontractors, and recipients of federal grant money related to diversity, equity, and inclusion (DEI) activities.

Federal financial assistance includes providers receiving Medicare Part A, Medicaid, and funding from federal housing assistance programs, among others.

The GSA proposed requiring all federal grantees, including nonprofits, state, local, and Tribal governments, and other entities, to sign new certifications under the threat of civil and criminal penalties before applying for or receiving federal resources, including grants, cooperative agreements, and other assistance.

LeadingAge is concerned that the proposed changes, which have already worked their way into some annual federal funding contracts, remain vague while simultaneously placing federal funding recipients at risk of noncompliance and, thus, under threat of civil and criminal penalties.

LeadingAge joined a comment letter coordinated by the National Council of Nonprofits that urges the GSA “to reverse course and stop these proposed changes.” Read the sign on letter here. Organizations have until March 30 to join the letter.