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Latest Cases & Developments
Date:
AAU Comments on GSA Information Collection Request (Mar. 30, 2026)
The Association of American Universities (AAU) submitted comments to the General Services Administration (GSA) regarding its proposed revisions to the System for Award Management (SAM) Registration Requirements for Financial Assistance Recipients, urging GSA to withdraw the proposed certification revisions. AAU raises concern with the fact that the proposed certification would require institutions to certify compliance with standards that are not yet settled law or endorsed by the courts and notes that universities already certify compliance with federal anti-discrimination laws through existing SAM and grant application processes. The letter also raises concern that the proposal could chill lawful diversity, equity, and inclusion (DEI) activities, impose substantial administrative and legal burdens, and centralize enforcement risk in a way that may expose institutions to heightened liability. AAU also stresses that before any certification requirement is finalized, the GSA must, at a minimum (1) define the key terms in plain language; (2) provide concrete examples of covered and non-covered institutional activities; and (3) establish a process by which institutions can seek binding guidance on whether specific programs comply with the certification’s requirements. The letter concludes by requesting that the GSA withdraw the proposed revised information collection requirement or extend the public comment period by at least 180 days, and engage in direct consultation with the higher education community before any revised certification text is published.
Topics:
Contracts | Discrimination, Accommodation, & Diversity | Enforcement of Non-Discrimination Laws | Grants, Contracts, & Sponsored Research | ResearchDate:
ACE Letter to GSA on proposed “Unlawful DEI” Certification Requirements (Mar. 23, 2026)
The American Council on Education (ACE), along with 25 higher education associations, sent a letter to the General Services Administration (GSA) regarding proposed amendments to the certification requirements for applicants and recipients of federal financial assistance. The proposal would require all entities receiving federal grants and assistance to certify that they do not have unlawful diversity, equity, and inclusion (DEI) programs and practices and are in compliance with legal interpretations of non-discrimination laws that have been advanced through executive orders and sub-regulatory guidance. The associations write that the proposed certification goes well beyond settled law and requires the endorsement of legal interpretations that are the subject of current federal litigation and have yet to be resolved by courts. The associations request that GSA “not advance” this proposal, stating that institutions should not be required to provide a certification of compliance with an interpretation of federal law that may, in fact, contradict state and local law, and would create significant uncertainty for institutions in their efforts to comply with federal law.
Topics:
Contracts | Discrimination, Accommodation, & Diversity | Enforcement of Non-Discrimination Laws | Grants, Contracts, & Sponsored Research | ResearchDate:
GSA Releases Draft Language for New Certifications for Federal Grants in the System for Award Management (Feb. 18, 2026)
The General Services Administration (GSA) released draft language for a new certification in the System for Award Management (SAM) that would require institutions receiving federal funds to affirm that they do not engage in “illegal DEI” practices. GSA wrote that this proposed update is to align itself with the Department of Justice’s “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination” from July 2025. The proposed language would require entities to certify that they do not engage in activities that violate federal antidiscrimination law, and clarifies the obligation as it applies to DEI, immigration, and anti-terrorism. The deadline for public comments is March 30, 2026.
Topics:
Contracts | Discrimination, Accommodation, & Diversity | Enforcement of Non-Discrimination Laws | Grants, Contracts, & Sponsored Research | ResearchDate:
Department of Labor Announces $65M in Grants for Community Colleges (Feb. 17, 2026)
The Department of Labor announced the availability of $65 million in funding to support programs that help community colleges develop high-quality, short term training programs. The sixth round of Strengthening Community College Training Grants funding is focused on programs that seek eligibility for the newly authorized Workforce Pell Grants.
Topics:
Contracts | Grants, Contracts, & Sponsored Research | ResearchDate:
American Association of University Professors, et al. v. Trump, et al. (9th Cir. Feb. 12, 2026)
The Trump Administration dropped its appeal of a November 2025 federal court injunction ordering the government to restore all previously canceled grants to UCLA and prohibiting it from withholding or conditioning federal funds or imposing penalties in connection with any civil rights investigations or violations of Title VI, VII, or IX. Under the agreement, the administration can still pursue a voluntary resolution agreement with the university if pursued as part of a lawful civil rights investigation. With this joint notice of dismissing the appeal, the district court’s decision will stand.
Topics:
Contracts | Grants, Contracts, & Sponsored Research | ResearchDate:
Department of Education Releases Latest Foreign Funding Disclosures (Feb. 11, 2026)
The Department of Education released new data on its updated foreign gift reporting portal. For 2025, universities reported more than 8,300 foreign gifts and contracts totaling more than $5.2 billion. The disclosures identify Qatar (over $1.1 billion), the United Kingdom (over $633 million), China (over $528 million), Switzerland (over $451 million), Japan (over $374 million), Germany (over $292 million), and Saudi Arabia (over $285 million) as the largest foreign sources of reportable gifts and contracts to American universities. The Department’s new portal is designed to make information more readily accessible to the public and provides aggregate foreign funding totals dating back to 1986, although these totals are not disaggregated by year.
Topics:
Endowments & Gifts | International Ventures | Research | Taxes & FinancesDate:
H.R. 7148, “Consolidated Appropriations Act, 2026” Signed into Law (Feb. 3, 2026)
Congress passed, and the President signed into law, a five-bill FY26 spending package that includes language preventing the administration from imposing a 15 percent cap on indirect cost rates for grants. For the next fiscal year, federal agencies like the National Institutes of Health, the National Sciences Foundation, and the Department of Defense are required to use the negotiated indirect cost rates, applying the process as outlined in 2 CFR § 200.414 and to the same extent and manner applied in FY24. For more information on the language within the appropriations bills, the Association of Public & Land-Grant Universities (APLU) published a tracker compiling facilities and administrative (F&A) language across all FY26 appropriations bills.
Topics:
Contracts | Grants, Contracts, & Sponsored Research | ResearchDate:
CRS Report on Universities and Indirect Costs for Federally Funded Research (Jan. 29, 2026)
The Congressional Research Service (CRS) issued a report on universities and indirect costs for federally funded research. The report includes discussion on fixed and negotiated rates, Office of Management and Budget (OMB) guidance, and considerations for policymakers, including additional or alternative approaches such as the Financial Accountability in Research (FAIR) model from the Joint Associations Group on Indirect Costs.
Topics:
Contracts | Grants, Contracts, & Sponsored Research | ResearchDate:
Department of Energy Announcement Rescinding Prior Agency Guidance on Indirect Cost Rates (Jan. 27, 2026)
The Department of Energy announced that as a result of the signing of the annual appropriations bill to fund the Department, several “Policy Flashes,” capping the indirect cost rate at 15% are no longer in effect. Under section 313 of the appropriations bill, DOE is required to “apply the indirect cost rates, as described in 2 CFR § 200.414, including with respect to the approval of deviations from negotiated indirect cost rates to the same extent and the same manners that was applied in fiscal year 2024” and that the agency is prohibited from spending any appropriated funding to “develop, modify or implement” any changes to the negotiated indirect cost rate.
Topics:
Contracts | Grants, Contracts, & Sponsored Research | Research
NACUA Annual Conference
Join us in the Music City June 29 – July 2 to connect, learn, and lead alongside higher education attorneys shaping policy, practice, and impact nationwide together.