Overview:
The General Services Administration is seeking public comment on another proposal from the Trump administration, one that withholds federal dollars from recipients engaging in DEI programs. The proposal is another example of the Trump administration relentless efforts in ending diversity initiatives in the U.S. despite push back from the federal court system.
Last month, a federal judge shut down the Trump administration’s initiative to force K-12 schools and colleges to end diversity, equity, and inclusion programs, or risk losing millions of dollars in federal grants.
Now, the administration is trying again — this time, using bureaucratic red tape.
The General Services Administration, the federal government’s central administrative agency, has announced it is soliciting public comment on a proposed rule change that would block schools from receiving federal funds if they don’t comply with President Donald Trump’s executive order banning DEI initiatives.
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If the rule is adopted, it could result in some districts losing out on money that could help improve underfunded and majority-minority schools.
What Happens if Trump Withholds Funds?
Jonathan Collins, an assistant professor of political science and education at Columbia University Teachers College, says threats to remove federal funding harm students at low-income schools and students who need extra support the most.
Title I schools are especially vulnerable: they typically are majority-minority, with students who tend to need more services than in better-funded districts, Collins says. Without federal help, he says, schools may have to turn to their state’s legislature for financial support.
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“Depending on the politics of your state, that may be successful, or you may get laughed out of the room,” Collins said.
What Is the GSA’s New Proposed Rule?
At issue are proposed changes to rules for organizations that receive federal money. The new rules would update the certifications that organizations must agree to in order to comply with federal guidance — specifically, an order signed by President Donald Trump last year that bans DEI in taxpayer-funded organizations.
If the rule is approved, it would require schools receiving federal money to certify that they are not running programs the administration considers discriminatory and would give federal agencies more leverage to investigate or challenge DEI initiatives.It could also allow the government to withhold funding or take enforcement action if schools that receive federal grants are found to be out of compliance.
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These schools, where there is a large share of Black students, often rely on the federal government for wraparound services, extra staffing for students with emotional support issues, and academic aides.
The public has until March 30 to weigh in on the proposal.
How Have The Court’s Responded to DEI Bans?
Public schools have been a primary focus of President Donald Trump’s war on DEI. In Chicago, for example, the federal government withheld $8 million from the city’s public schools in September 2025 for its Black student success plan.
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The plan — which the Trump administration has labeled as racially discriminatory — was a five-year initiative aimed at improving the academic outcomes of the district’s Black students.
However, in recent months, federal courts have blocked these attempts. In February, a federal judge in New Hampshire stopped a Trump administration directive to end all DEI programs in K-12 public schools, colleges, and universities.
The directive was issued in a “Dear Colleague Letter,” which told schools they had 14 days to comply with the Trump administration or risk losing their federal funding.
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The letter was quickly challenged by several groups: the American Civil Liberties Union, its branches in Massachusetts and New Hampshire, the National Education Association, and the Center for Black Educator Development, which later joined as a plaintiff.
The lawsuit was temporarily blocked in April.