Rule2026-01517
Combating Discriminatory Equity Ideology in Foreign Assistance Rules
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 27, 2026
Effective
February 26, 2026
Issuing agencies
State Department
Abstract
To implement the foreign policy objective of the United States not to support the promotion of discriminatory equity ideology overseas directly or indirectly, the U.S. Department of State (Department) is adding a new award term for grants, cooperative agreements, and voluntary contributions entitled "Combating Discriminatory Equity Ideology in Foreign Assistance." The award term imposes certain requirements relating to discriminatory equity ideology on foreign nongovernmental organizations (NGOs), United States NGOs, international organizations, foreign governments, and parastatals. The award term is issued consistent with the Foreign Assistance Act of 1961 (FAA) and other foreign assistance authorities such as the FREEDOM Support Act, the Migration and Refugee Assistance Act of 1962, and the SEED Act of 1989, which authorize the Department to provide foreign assistance on such terms and conditions as the President, and by delegation, the Secretary of State, may determine.
Full Text
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<title>Federal Register, Volume 91 Issue 17 (Tuesday, January 27, 2026)</title>
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[Federal Register Volume 91, Number 17 (Tuesday, January 27, 2026)]
[Rules and Regulations]
[Pages 3345-3358]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01517]
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DEPARTMENT OF STATE
2 CFR Part 604
[Public Notice: 12932]
RIN 1400-AG26
Combating Discriminatory Equity Ideology in Foreign Assistance
Rules
AGENCY: Department of State.
ACTION: Final rule.
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SUMMARY: To implement the foreign policy objective of the United States
not to support the promotion of discriminatory equity ideology overseas
directly or indirectly, the U.S. Department of State (Department) is
adding a new award term for grants, cooperative agreements, and
voluntary contributions entitled ``Combating Discriminatory Equity
Ideology in Foreign Assistance.'' The award term imposes certain
requirements relating to discriminatory equity ideology on foreign
nongovernmental organizations (NGOs), United States NGOs, international
organizations, foreign governments, and parastatals. The award term is
issued consistent with the
[[Page 3346]]
Foreign Assistance Act of 1961 (FAA) and other foreign assistance
authorities such as the FREEDOM Support Act, the Migration and Refugee
Assistance Act of 1962, and the SEED Act of 1989, which authorize the
Department to provide foreign assistance on such terms and conditions
as the President, and by delegation, the Secretary of State, may
determine.
DATES: The rule is effective February 26, 2026.
FOR FURTHER INFORMATION CONTACT: Bureau of Global Acquisitions, Federal
Assistance Division, <a href="/cdn-cgi/l/email-protection#ea8c8f8e8b999983999e8b84898f9a8586838993aa999e8b9e8fc48d859c"><span class="__cf_email__" data-cfemail="583e3d3c392b2b312b2c39363b3d283734313b21182b2c392c3d763f372e">[email protected]</span></a>, (202) 890-9795.
SUPPLEMENTARY INFORMATION:
I. Executive Summary
To ensure that foreign aid is aligned with administration policy
and promotes human flourishing, the Secretary of State has directed
that foreign assistance align with State Department policies opposing
gender ideology, discriminatory equity ideology, unlawful diversity,
equity, and inclusion (DEI) programs, and abortion as a method of
family planning overseas. Consistent with this directive, as a
condition of receiving foreign assistance, recipients must agree to the
award terms pursuant to the following policies: Protecting Life in
Foreign Assistance (PLFA), Combating Gender Ideology in Foreign
Assistance (CGIFA), and the Combating Discriminatory Equity Ideology in
Foreign Assistance (CDEIFA). These policies are referred to
collectively as the Promoting Human Flourishing in Foreign Assistance
(PHFFA) Policy.
Implementation of the PHFFA Policy is consistent with
administration policy as embodied in numerous Presidential actions,
including:
<bullet> Presidential Memorandum of January 24, 2025, The Mexico
City Policy;
<bullet> Executive Order 14182 of January 24, 2025, Enforcing the
Hyde Amendment;
<bullet> Executive Order 14150 of January 20, 2025, America First
Policy Directive to the Secretary of State;
<bullet> Presidential Memorandum of February 6, 2025, Advancing
United States Interests When Funding Nongovernmental Organizations;
<bullet> Presidential Memorandum of February 4, 2025, Withdrawing
the United States from and Ending Funding to Certain United Nations
Organizations and Reviewing United States Support to all International
Organizations;
<bullet> Executive Order 14190 of January 29, 2025, Ending Radical
Indoctrination in K-12 Schooling;
<bullet> Presidential Memorandum of March 18, 2025, Removing
Discrimination and Discriminatory Equity Ideology from the Foreign
Service;
<bullet> Executive Order 14151 of January 20, 2025, Ending Radical
and Wasteful DEI Programs and Preferencing;
<bullet> Executive Order 14168 of January 20, 2025, Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to the
Federal Government;
<bullet> Executive Order 14173 of January 21, 2025, Ending Illegal
Discrimination and Restoring Merit-Based Opportunity;
II. Combating Discriminatory Equity Ideology in Foreign Assistance
Under previous administrations, U.S. foreign assistance was abused
to fund discriminatory diversity equity and inclusion (DEI)) policies
and similar ideologies that promoted corrosive identity politics rather
than alleviating poverty or promoting human flourishing and prosperity.
This ideology, referred to in this rule as discriminatory equity
ideology, treats individuals as members of preferred or disfavored
groups, rather than as individuals, and minimizes agency, merit, and
capability in favor of generalizations.
Under the previous administration, USAID issued DEI strategic
action plans,\1\ installed Diversity, Equity, and Inclusion (DEI)
advisers and DEI committees ``in all of its bureaus, offices, and
[overseas] missions,'' and monitored compliance with ``an agency-wide
dashboard and DEI scorecard for all bureaus, offices, and
missions''.\2\ The prior administration's diplomats embraced the so-
called ``1619 Project'' and denigrated the United States claiming
``white supremacy and black inferiority'' were ``weaved'' ``into our
founding document and principles.'' \3\ USAID's 2023 Updated Equity
Action Plan pledged that it would ``[a]nalyze up to 10 Performance Plan
and Report (PPR) Key Issue Narratives and identify new opportunities
for advancing racial and ethnic equity and support for underserved
communities in programming'' and ``[e]stablish targets for increased
budgetary attributions during the Operational Plan process against all
of the following Key Issues: Racial and Ethnic Equity, Indigenous
Peoples, LGBTQI+, and Disability.'' \4\
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\1\ Diversity, Equity, Inclusion, and Accessibility in USAID
Programs, FY22-Q1 <a href="https://assets.performance.gov/APG/files/2022/may/FY2022_May_USAID_Progress_Diversity_Equity_Inclusion_and_Accessibility_in_USAID_Programs.pdf">https://assets.performance.gov/APG/files/2022/may/FY2022_May_USAID_Progress_Diversity_Equity_Inclusion_and_Accessibility_in_USAID_Programs.pdf</a>.
\2\ Adva Saldinger, ``USAID Steps Up `Languishing' Diversity,
Equity, and Inclusion Effort,'' <a href="http://Devex.com">Devex.com</a>, December 15, 2021,
<a href="https://www.devex.com/news/usaid-steps-up-languishing-diversity-equity-and-inclusion-effort-102316">https://www.devex.com/news/usaid-steps-up-languishing-diversity-equity-and-inclusion-effort-102316</a>.
\3\ U.S. Mission to International Organizations in Geneva,
``Remarks by Ambassador Linda Thomas-Greenfield on the International
Day for the Elimination of Racial Discrimination,'' March 19, 2021,
<a href="https://geneva.usmission.gov/2021/03/19/remarks-by-ambassador-linda-thomas-greenfield-for-international-day-for-the-elimination-of-racial-discrimination/">https://geneva.usmission.gov/2021/03/19/remarks-by-ambassador-linda-thomas-greenfield-for-international-day-for-the-elimination-of-racial-discrimination/</a>.
\4\ USAID, 2023 Updated Equity Action Plan, <a href="https://assets.performance.gov/cx/equity-action-plans/2023/EO_14091_USAID_EAP_2023.pdf">https://assets.performance.gov/cx/equity-action-plans/2023/EO_14091_USAID_EAP_2023.pdf</a>.
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This rule also aligns with other Presidential directives to the
Department of State, and other agencies, including the memorandum of
March 18, 2025, ``Removing Discrimination and Discriminatory Equity
Ideology from the Foreign Service.'' This memorandum directs the
Secretary of State to remove the ``Diversity, Equity, Inclusion, and
Accessibility'' Core Precept from Foreign Service tenure and promotion
criteria, and established the policy of the Federal Government that
hiring in foreign policy positions, like hiring in all other parts of
the Government, shall be based solely on merit. The memorandum also
directs the Department of State and other agencies to direct all
officers and employees not to ``while acting in an official capacity,
promote, advocate for, or otherwise inculcate support for
discriminatory equity ideology'' (See section 3(b)(ii)). The definition
of ``discriminatory equity ideology'' in this rule aligns with that
Presidential memorandum.
The promotion abroad of radical DEI activities and the ideology of
discriminatory equity ideology that undergirds it, undermines the
wellbeing and flourishing of foreign nations and promote radical
ideologies. It is the purpose of this rule to end taxpayer support for
radical discriminatory equity ideology, directly or indirectly, and to
end all forms of unlawful DEI-related discrimination by recipients of
foreign assistance, and thereby to unwind efforts of the prior
administration, and of nongovernmental and international organizations,
that have integrated and encouraged discrimination and discriminatory
equity ideology in foreign assistance programs. This rule is consistent
with similar efforts by the Department to protect taxpayers from
supporting abortion under the Protecting Life in Foreign Assistance
Policy (often known as the Mexico City Policy) and from supporting
gender ideology under the Combating Gender Ideology in Foreign
Assistance Policy. Accordingly, under
[[Page 3347]]
this rule the Department of State will defend the rights of women and
children, protect freedom of conscience and national sovereignty, and
protect all individuals from unlawful DEI-related discrimination, by
requiring recipients of foreign assistance to comply with certain
restrictions relating to discriminatory equity ideology and unlawful
DEI-related discrimination. The rule provides for a waiver of the
policy or its elements in specific cases if, in the Secretary of
State's judgment, such a waiver is necessary for national security or
foreign policy purposes. The Department of State will issue guidance on
the waiver process. Consistent with past Mexico City Policy protocol,
the provision will generally be incorporated as applicable into grants
and cooperative agreements when new funds are added as well as into new
awards.
A. Foreign NGOs and International Organizations
Under this rule, any foreign NGO or international organization (IO)
that receives or implements a grant or cooperative agreement for
foreign assistance will be required to agree that, during the period of
the award, it will not, outside the United States, promote
discriminatory equity ideology, engage in unlawful DEI-related
discrimination, or provide financial support to any other foreign NGO
or IO that conducts such activities.
B. U.S. NGOs
Under this rule, a U.S. NGO that receives or implements a foreign
assistance grant or cooperative agreement will not be subject to the
policy requirements for a foreign NGO or IO. However, a U.S. NGO will
be required to agree that, during the period of the award, it will not,
outside the United States, engage in unlawful DEI-related
discrimination, that it will not, within the scope of any program,
project, or activity funded by foreign assistance, promote
discriminatory equity ideology or engage in such discrimination, and
that it will ensure the physical and financial separation of its
foreign assistance-funded programs, projects, and activities from such
activities.
With respect to the promotion of discriminatory equity ideology
(other than engaging in unlawful DEI-related discrimination), this rule
makes clear that with respect to United States non-governmental
organizations, the award terms shall be construed consistent with the
First Amendment to the United States Constitution, and shall not be
construed to restrict the freedoms of speech or association of such
organizations when using non-Federal funds outside the scope of a
program, project or activity for which foreign assistance is made
available. This is consistent with the Supreme Court's holding in
Agency for International Development v. Alliance for Open Society
International, Inc., 570 U.S. 205 (2013). The limitations on unlawful
DEI-related discrimination do not abridge speech protected under the
First Amendment and so are not limited by this rule of construction.
Consistent with the Supreme Court's guidance in AID v. Alliance and
its ruling in Rust v. Sullivan, 500 U.S. 173 (1991), this rule imposes
restrictions on the promotion of discriminatory equity ideology within
the scope of programs, projects, and activities that receive Federal
funds. These program integrity restrictions ensure that there is a
bright line of separation of U.S. foreign assistance programs from
discriminatory equity ideology. In Rust, the Supreme Court upheld
similar regulations in the Title X family planning program which
prohibited Title X projects from engaging in counseling concerning,
referrals for, and activities advocating abortion as a method of family
planning, and required such projects to maintain an objective integrity
and independence from the prohibited abortion activities by the use of
separate facilities, personnel, and accounting records. Relevant here,
in Rust, the Court held:
The regulations do not violate the First Amendment free speech
rights of private Title X fund recipients, their staffs, or their
patients by impermissibly imposing viewpoint-discriminatory
conditions on Government subsidies. There is no question but that
Sec. 1008's prohibition is constitutional, since the Government may
make a value judgment favoring childbirth over abortion, and
implement that judgment by the allocation of public funds. Maher v.
Roe, 432 U. S. 464, 432 U. S. 474. In so doing, the Government has
not discriminated on the basis of viewpoint; it has merely chosen to
fund one activity to the exclusion of another. Similarly,
implementing the statutory prohibition by forbidding counseling,
referral, and the provision of information regarding abortion as a
method of family planning, the regulations simply ensure that
appropriated funds are not used for activities, including speech,
that are outside the federal program's scope. Arkansas Writers'
Project, Inc. v. Ragland, 481 U. S. 221, distinguished.
Imposition of physical and financial separation requirements from
the provision and promotion of discriminatory equity ideology in
foreign assistance programs is constitutionally permissible, just as
similar requirements with respect to abortion were held to be
constitutional under the Title X family planning program. In addition
to the above, while U.S. NGOs must flow down the award terms under this
rule to subrecipients, they are not subject to an additional
requirement not to provide financial support using non-Federal funds to
other organizations that promote discriminatory equity ideology outside
the United States.
C. Foreign Governments and Parastatals
A foreign government or parastatal that receives or implements a
grant or cooperative agreement for foreign assistance will not be
subject to the same award terms as a foreign or U.S. NGO. The
Department has elected this approach based on considerations relating
to foreign policy. However, a foreign government or parastatal may be
required to agree that, during the period of the award, it will not use
foreign assistance funds under this award to promote discriminatory
equity ideology or to engage in unlawful DEI-related discrimination.
Pursuant to a Department assessment that this award term should apply,
in whole or in part, to an award to a foreign government or parastatal,
that foreign government or parastatal will be required to place any
foreign assistance funds under the award in a segregated account to
ensure that such funds may not be used to support such activity to the
extent the foreign government conducts or supports such activity.
D. Flow Down of Policy Requirements to Subrecipients.
Foreign and U.S. NGOs, IOs, foreign governments, and parastatals
will be required to flow down the award terms under this rule, as
applicable, to subrecipients of foreign assistance.
E. Scope of Foreign Assistance
The Department has determined that applying this rule to non-
military foreign assistance broadly is necessary to ensure that foreign
assistance programs do not support foreign NGOs and IOs that promote
discriminatory equity ideology, and U.S. NGOs that engage in unlawful
DEI-related discrimination, and to ensure the integrity of programs
such as humanitarian assistance, gender-related programs, and more, do
not promote discriminatory equity ideology. It is also necessary to
unwind efforts by prior administrations, as described earlier in this
rule, to integrate discriminatory equity ideology throughout foreign
assistance programs. This rule will also allow for more foreign
assistance funds to support organizations that support American values
in their foreign
[[Page 3348]]
assistance programs and help the Department to establish new
partnerships.
Under this rule, ``foreign assistance'' subject to this policy is
defined as federal funding administered by the Department under title
III of, or under the ``International Narcotics Control and Law
Enforcement,'' ``Nonproliferation, Anti-Terrorism, Demining and Related
Programs,'' ``Peacekeeping Operations,'' and ``International
Organizations and Programs'' headings of, the annual Department of
State, Foreign Operations, and Related Programs Appropriations Act.
Accordingly, this rule covers non-military foreign assistance
including, but not limited to: Global Health Programs, humanitarian
assistance, economic and development assistance, stabilization
assistance, civil society and democracy programming, Migration and
Refugee Assistance, and voluntary contributions to international
organizations, funded from foreign assistance.
This rule does not cover military assistance and other assistance
that falls outside the definition above.
For foreign assistance awards, the CDEIFA award term will be
included in (i) all new grants and cooperative agreements that provide
foreign assistance; and (ii) all existing grants and cooperative
agreements that provide foreign assistance when such agreements are
amended to add new funding.
State Department is working with other agencies that administer
foreign assistance to implement the CDEIFA award term in their foreign
assistance grants and agreements, to the maximum extent allowable by
federal law, consistent with the statutes and regulations on which they
are based and that such agencies administer, as well as applicable
grant-specific regulations.
For contracts, the Administration is developing a corresponding
clause for all U.S. government departments and agencies to include in
certain types of contracts for foreign assistance. Until the rule-
making process is complete, no clause will be included in foreign
assistance contracts. However, this rule covers grants made under
contracts at this time.
F. Definitions
For purposes of this rule, the following definitions apply:
Discriminatory equity ideology is an ideology that treats
individuals as members of preferred or disfavored groups, rather than
as individuals, and minimizes agency, merit, and capability in favor of
generalizations, including that:
(I) Members of one race, color, religion, sex, or national origin
are morally or inherently superior to members of another race, color,
religion, sex, or national origin;
(II) An individual, by virtue of the individual's race, color,
religion, sex, or national origin, is inherently racist, sexist, or
oppressive, whether consciously or unconsciously;
(III) An individual's moral character or status as privileged,
oppressing, or oppressed is primarily determined by the individual's
race, color, religion, sex, or national origin;
(IV) Members of one race, color, religion, sex, or national origin
cannot and should not attempt to treat others without respect to their
race, color, religion, sex, or national origin;
(V) An individual, by virtue of the individual's race, color,
religion, sex, or national origin, bears responsibility for, should
feel guilt, anguish, or other forms of psychological distress because
of, should be discriminated against, blamed, or stereotyped for, or
should receive adverse treatment because of actions committed in the
past by other members of the same race, color, religion, sex, or
national origin, in which the individual played no part;
(VI) An individual, by virtue of the individual's race, color,
religion, sex, or national origin, should be discriminated against or
receive adverse treatment to achieve diversity, equity, or inclusion;
(VII) Virtues such as merit, excellence, hard work, fairness,
neutrality, objectivity, and racial colorblindness are racist or sexist
or were created by members of a particular race, color, religion, sex,
or national origin to oppress members of another race, color, religion,
sex, or national origin; or
(VIII) the United States is fundamentally racist, sexist, or
otherwise discriminatory.
To ``promote discriminatory equity ideology'' includes using or
teaching education materials (including books, curricula, and media)
that advance this ideology.
Action by an individual who is acting in his or her personal
capacity shall not be attributed to an organization with which the
individual is associated, provided that the individual is neither on
duty nor acting on the organization's premises, and provided that the
organization neither endorses, nor provides financial support for, the
action and takes reasonable steps to ensure the individual does not
improperly represent that he or she is acting on behalf of the
organization.
Unlawful diversity, equity, and inclusion-related discrimination
(or ``Unlawful DEI-related discrimination'') means discrimination on
the basis of race, color, religion, or national origin if such
discrimination violates U.S. federal antidiscrimination law or would
violate U.S. federal antidiscrimination law if it occurred inside the
United States, including the use of those characteristics as a
selection criterion or preference for, or basis for exclusion from,
employment, contracting, program participation, resource allocation, or
similar activities, opportunities, or benefits. Such term includes all
conduct that discriminates on the basis of race, color, religion, or
national origin that violates U.S. federal antidiscrimination law or
would violate U.S. federal antidiscrimination laws if it occurred
inside the United States, including any ``unlawful practices'' under
the Attorney General's Guidance for Recipients of Federal Funding
Regarding Unlawful Discrimination (July 29, 2025) with respect to those
characteristics. Such term does not apply to a religious corporation,
association, or society with respect to the employment of individuals
of a particular religion to perform work connected with the carrying on
by such corporation, association, or society of its religious
activities. Such term shall also not apply to decisions by any
religious corporation, association, or society regarding the employment
of individuals who perform religious functions or other key roles for
such entities. See Our Lady of Guadalupe School v. Morrissey-Berru, 591
U.S. 732 (2020); Hosanna-Tabor Evangelical Lutheran Church and School
v. EEOC, 565 U.S. 171 (2012).
Foreign assistance is federal funding appropriated under title III
of, or under the ``International Narcotics Control and Law
Enforcement,'' ``Nonproliferation, Anti-Terrorism, Demining and Related
Programs,'' ``Peacekeeping Operations,'' and ``International
Organizations and Programs'' headings of, the annual Department of
State, Foreign Operations, and Related Programs Appropriations Act.
To furnish foreign assistance means transferring foreign assistance
funds provided under this award or goods financed with such funds to
another entity. This does not include providing technical assistance or
training (including costs directly related to such assistance or
training for individuals), unless the entity receives a sub-award of
foreign assistance funds under this award. Additionally, furnishing
foreign assistance does not include purchasing goods or services from
the entity.
[[Page 3349]]
To control an organization means to possess the power to direct, or
cause the direction of, its management, personnel, and policies.
A foreign non-governmental organization is any non-governmental
organization or entity, whether non-profit or profit-making (including
any commercial firm and educational institution), not organized or
existing under the laws of the United States, any State of the United
States, the District of Columbia, the Commonwealth of Puerto Rico, or
any other territory or possession of the United States.
A United States non-governmental organization is any non-
governmental organization or entity, whether non-profit or profit-
making (including any commercial firm and educational institution),
organized or existing under the laws of the United States, any State of
the United States, the District of Columbia, the Commonwealth of Puerto
Rico, or any other territory or possession of the United States.
An international organization is--
(A) Any organization designated as being entitled to enjoy the
privileges, exemptions, and immunities under the International
Organizations Immunities Act;
(B) Any organization treated as a public international organization
pursuant to the regulations or policies of the Department of State;
(C) Any organization established by international agreement and
whose governing body is composed principally of representatives of
national governments; or
(D) Any other multilateral entity in which sovereign nations
participate.
To provide financial support means to provide funds from any source
and for any purpose to a foreign NGO or IO through an award, sub-award,
contract, sub-contract, grant under contract, or other written
agreement or donation of funds.
A foreign government is any department, agency, independent
establishment, or other entity of the government of a foreign country.
A parastatal is a foreign-government-owned organization operated as
a commercial company or other organization, including non-profits, or
enterprises in which foreign governments or foreign government agencies
have a controlling interest.
G. Unlawful DEI-Related Discrimination
For purposes of this rule, unlawful DEI-related discrimination
means discrimination on the basis of race, color, religion, or national
origin if such discrimination violates U.S. federal antidiscrimination
law or would violate U.S. federal antidiscrimination law if it occurred
inside the United States, including the use of those characteristics as
a selection criterion or preference for, or basis for exclusion from,
employment, contracting, program participation, resource allocation,
training, or similar activities, opportunities, or benefits. This
includes all conduct that discriminates on the basis of race, color,
religion, or national origin that violates U.S. federal
antidiscrimination law or would violate U.S. federal antidiscrimination
laws if it occurred inside the United States, including any ``unlawful
practices'' under the Attorney General's Guidance for Recipients of
Federal Funding Regarding Unlawful Discrimination (July 29, 2025) with
respect to those characteristics. This rule does not address
discrimination on the basis of disability or other protected classes,
nor does it address the application of this guidance on grounds other
than race, color, religion, or national origin.
The Attorney General's guidance provides examples of unlawful
practices such as race-based training sessions, race-based segregation
in facilities or resources, implicit segregation through program
eligibility, race-based ``diverse slate'' policies in hiring, race-
based program participation (including when framed as addressing
underrepresentation), DEI training programs that promote discrimination
based on protected characteristics, such as by stereotyping, excluding
or disadvantaging individuals based on their race, color, religion, or
national origin, or creating a hostile environment.
Recipients of foreign assistance are urged to review all programs,
policies and partnerships to ensure compliance with this rule and
discontinue any practices that unlawfully discriminate. The Department
also encourages recipients of foreign assistance to review and
implement the best practices outlined in the Attorney General's
guidance.
H. Legal Authority
This rule amends 2 CFR chapter VI to add an award term at part 604,
entitled ``Combating Discriminatory Equity Ideology in Foreign
Assistance.'' The term, applicable to all solicitations, Federal
assistance awards, and subawards, including grants under contracts,
awarded with Department of State foreign assistance funds, including
funds transferred to the United States Department of State from the
U.S. Agency for International Development, provides certain
discriminatory equity ideology-related requirements intended to
prohibit any direct or indirect support of discriminatory equity
ideology and unlawful DEI-related discrimination.
Under the statutory regime governing foreign assistance, and
consistent with his responsibilities regarding the conduct of U.S.
foreign affairs, the President has broad discretion to set the terms
and conditions on which the United States provides such assistance.
Many of the authorities provided under the Foreign Assistance Act of
1961, and similar statutes, explicitly allow for the provision of
assistance ``on such terms and conditions as [the President] may
determine.'' See, e.g., section 104(c)(1) of the FAA (22 U.S.C.
2151b(c)(1)) (health assistance); section 301(a) of the FAA (22 U.S.C.
2221(a)) (voluntary contributions to international organizations);
section 481(a)(4) of the FAA (22 U.S.C. 2291(a)(4)) (counternarcotics
and anti-crime assistance); section 531 of the FAA (22 U.S.C. 2346)
(assistance to promote economic or political stability); section 541(a)
of the FAA (22 U.S.C. 2347) (International Military Education and
Training assistance); section 551 of the FAA (22 U.S.C. 2348)
(Peacekeeping Operations); section 571 of the FAA (22 U.S.C. 2349aa)
(anti-terrorism assistance); see also section 2(c)(1) of the MRAA;
section 201 of the SEED Act of 1989 (amending the FAA by inserting,
inter alia, section 498b(i))).
Section 621(a) of the FAA provides that ``[t]he President may
exercise any functions conferred upon him by this Act through such
agency or officer of the United States Government as he shall direct.
The head of any such agency or such officer may from time to time
promulgate such rules and regulations as may be necessary to carry out
such functions. . . .'' 22 U.S.C. 2381(a). The Secretary of State
exercises authorities under the FAA as delegated by the President in
Executive Order 12163, dated September 29, 1979, as amended. That
includes the President's authority to ``issue and enforce regulations
determining the eligibility of any person to receive funds made
available under'' the FAA. 22 U.S.C. 2381(b).
This rule falls within the Department's authority, delegated to the
Secretary of State by the President, to set conditions on the provision
of foreign assistance, including on the implementers of such
assistance. Courts have repeatedly recognized that the President has
broad discretion in the conduct of foreign affairs to allocate foreign
assistance funding for particular programs and to set the conditions on
U.S. funding to implementers of those
[[Page 3350]]
programs. See, e.g., DKT Memorial Fund v. USAID, 887 F.2d 275, 282
(D.C. Cir. 1989); Planned Parenthood Federation of America v. USAID,
915 F.2d 59 (2d Cir. 1990); Center for Reproductive Law and Policy v.
Bush, 304 F.3d 183 (2d Cir. 2002). These courts recognized the
President's broad discretion to allocate assistance funding for
particular programs and to set the conditions on U.S. funding to non-
governmental implementers of those programs. See, e.g., Planned
Parenthood v. USAID, 838 F.2d 649, 654 (2d Cir. 1988) (in carrying out
the policies under the Foreign Assistance Act, ``AID has `broad
discretionary power' to decide which, among numerous competing
projects, will be given family planning funds''); DKT, 887 F.2d at 282
(``President acted under a congressional grant of discretion as broadly
worded as any we are likely to see. . . .'').
Moreover, the Secretary has the authority to promulgate such rules
and regulations as may be necessary to carry out his functions and the
functions of the Department of State. See 22 U.S.C. 2651a(a)(4). This
rule provides an award requirement for federal assistance award
recipients to refrain from discriminatory equity ideology-related
activities to varying degrees. Under its grantmaking authority, the
Department awards grants in the execution of foreign assistance
programs. Prudent and responsible exercise of the Department's foreign
assistance and grantmaking authority requires that award terms ensure
that foreign assistance does not support, directly or indirectly, the
provision or promotion of discriminatory equity ideology. In addition
to the Department's authority to promulgate regulations under the FAA,
described above, 2 CFR 200.211(c), (d), and (e) also expressly
authorize the agency to incorporate in an award general terms and
conditions; Federal awarding agency, program, or Federal award specific
terms and conditions; and Federal awarding agency requirements.
This rule is issued pursuant to the Secretary's authorities
described above.
The Department has additionally considered the potential reliance
interests of funding recipients and others on this final rule. The
Department understands that, as a result of this rule, some
organizations may choose to no longer receive or seek foreign
assistance funds rather than comply with the award term. We understand
that compliance may require organizations to cease activities that they
may have long carried out, but are prohibited under the award term
established under this rule. In the case of U.S. NGOs, we anticipate
that some organizations will incur transition costs where certain other
programs that shared facilities with foreign assistance programs must
now establish separate physical facilities.
The Department believes that many organizations that are current
recipients of foreign assistance will come into compliance as they
obtain future grants or when funds are added to existing grants.
However, the Department understands that certain organizations may
decide to no longer accept foreign assistance in the future because of
these award terms, which could in turn result in temporary disruptions
in service delivery or impacts on program beneficiaries. In such cases,
the Department will work to find new partners willing to agree to the
award term, while minimizing any disruption of services. Moreover, the
Department expects the quality and impact of foreign assistance
programs to improve as programs are focused and prioritized, without
being diverted for activities in violation of this rule.
The interests of organizations in maintaining continued taxpayer
funding, while continuing activities that are inconsistent with this
rule, do not outweigh the Department's foreign policy concerns and
objectives outlined in this rule to ensure that foreign assistance
funds do not directly or indirectly support discriminatory equity
ideology. Compliance with this rule is additionally necessary to remove
confusion caused when U.S.-funded organizations act in a manner
inconsistent with this rule, which can create confusion regarding the
foreign policy priorities and objectives of the United States.
Finally, in the event that any portion of this final rule is
declared invalid, the Department intends that the various aspects be
severable; the Department would intend the remaining features of the
policy to stand.
III. Regulatory Analyses
A. Administrative Procedure Act
Pursuant to the Administrative Procedure Act (APA), this is final
rule is published without prior notice and comment or a delayed
effective date. Because this rule involves a matter relating to grants,
it is not subject to 5 U.S.C. 553. See 5 U.S.C. 553(a)(2). In addition,
this rule is exempt because it involves the foreign affairs functions
of the United States. See 5 U.S.C. 553(a)(1).
B. Executive Orders 12866 (Regulatory Planning and Review), and 13563
(Improving Regulation and Regulatory Review)
The Office of Information and Regulatory Affairs has determined
that this rulemaking is an economically significant regulatory action
under section 3(f) of Executive Order 12866, (Sep. 30, 1993).
Accordingly, this rule has been submitted to the Office of Management
and Budget (``OMB'') for review.
This regulation has been drafted and reviewed in accordance with
Executive Order 12866 section 1(b), id. at 51735, and in accordance
with Executive Order 13563 section 1(b) (Jan. 18, 2011), which
supplements and reaffirms the principles of Executive Order 12866.
These Executive Orders direct agencies to assess all costs and benefits
of available regulatory alternatives and, if regulation is necessary,
to select regulatory approaches that maximize net benefits. Executive
Order 13563 also recognizes that some benefits and costs are difficult
to quantify and provides that, where appropriate and permitted by law,
agencies may consider and discuss qualitatively values that are
difficult or impossible to quantify. Id.
As explained in the preamble, the award terms under this rule are
necessary to advance the United States' foreign policy objective not to
support discriminatory equity ideology .
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
the costs and benefits of the intended regulation. E.O. 13563 allows
that in making this assessment, an agency ``may consider (and discuss
qualitatively) values that are difficult or impossible to quantify,
including equity, human dignity, fairness, and distributive impacts.''
Including this award provision in grants and cooperative agreements
funded by Department of State foreign assistance provides an explicit
requirement that the Department's recipients and grantees not violate
applicable undertakings relating to the provision or promotion of
discriminatory equity ideology. The benefits of the rule include
protecting American taxpayers from supporting discriminatory equity
ideology, directly or indirectly, advancing the foreign policy
interests of the United States not to support discriminatory practices
or anti-American ideologies, and to ensure foreign assistance programs
and foreign partners are not undermining the laws and values of foreign
nations or pressuring such nations to support discriminatory equity
ideology. In addition, the restrictions on unlawful
[[Page 3351]]
DEI-related discrimination ensure broader access to foreign assistance
programs by program recipients and secure merit-based opportunity for
employees of recipients of foreign assistance.
The Department recognizes there are costs associated with this
rule. Potential one-time and recurring costs the Department identifies
for recipients and grantees are for familiarization with the rule,
development and delivery of organizational training and implementation
guidance, routine compliance monitoring, and recordkeeping and
reporting requirements.
The Department estimates that 2,500 recipients and grantees
(including foreign NGOs, U.S. NGOs, international organizations, and
foreign governments and parastatals) will be impacted by this rule.
This estimate is derived from an analysis of the Department's current
portfolio of funding recipients implementing activities with foreign
assistance funds.
Based in part on the Department's previous experience, the agency
estimates that recipients and grantees will first require 50 hours, on
average, to familiarize themselves with the recordkeeping requirements
within this final rule, and revise internal policies and financial
accounting systems to comply with said recordkeeping requirements. To
quantify the total one-time familiarization costs, The Department used
June 2025 data from the Bureau of Labor Statistics (BLS) National
Compensation Survey,\5\ reporting a mean fringe benefit factor of 1.46
for civilian workers in general. The Department assumes that impacted
entities will employ an attorney to analyze the rule. Multiplying the
BLS mean hourly wage for Lawyers, Standard Occupation Classification
23-1011 of $87.86 by the mean fringe benefit factor of 1.46 yields an
estimated total compensation (wages and benefits) for Lawyers of
$128.28 per hour ([$87.86 per hour] x 1.46).
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\5\ <a href="https://www.bls.gov/news.release/pdf/ecec.pdf">https://www.bls.gov/news.release/pdf/ecec.pdf</a>.
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Thus, the agency calculates a one-time cost for familiarization of
$16,035,000 [(2,500 entities) times (50 hours per entity) times
($128.28/hour)].
For the development and delivery of organization-specific training,
the Department estimates a cost of $37,984,700. The Department
estimates that recipients subject to the rule will spend twenty one
(21) hours annually to train their workforces: eight (8) hours
developing training materials and twelve (12) hours each month to train
newly hired staff, and one hour to train existing staff. The Department
estimates that a lawyer will develop and conduct this training at a
cost of $128.28 per hour, and that all recipient staff will attend a
one-hour training. The Department estimates an average workforce size
of 250 staff with an average hourly salary of $50. For routine
compliance monitoring costs, the Department estimates $76,968,000
annually. The Department estimates a minimum of 240 annual hours (20
hours monthly) to monitor prime and sub-recipient activities. Such
monitoring activities may include development of monitoring tools such
as checklists, discussion guides, and reference materials, conducting
desk review of documents, reports, work plans, and budgets, and
conducting site visits to inspect implementation of activities for
compliance with policy requirements. The Department estimates that
these activities will be conducted by lawyers and senior program
managers with an average hourly salary of $128.28.
Finally, the Department recognizes that this final rule is likely
to impose costs on some U.S. NGOs whose programs currently share
facilities with foreign assistance programs, and now must establish
separate physical facilities. The Department also understands that
certain organizations may decide to no longer accept-foreign assistance
in the future because of these award terms, which could in turn result
in temporary disruptions in service delivery, imposing costs on program
beneficiaries. However, the Department is not able to quantitatively
assess these costs.
In summary, the Department estimates this rule will impose one-time
familiarization costs of $16,035,000, and annual costs related to
training and compliance monitoring of $114,052,700.
C. Regulatory Flexibility Act
Congress enacted the Regulatory Flexibility Act of 1980, as
amended, 5 U.S.C. 601-612, to ensure that Government regulations do not
unnecessarily or disproportionately burden small entities. It requires
a regulatory flexibility analysis if a rule is subject to the notice-
and-comment provisions of the APA and would have a significant economic
impact, either detrimental or beneficial, on a substantial number of
small entities. This rule is exempt from the notice and comment
requirements of the APA, as a matter related to grants and foreign
affairs functions, and thus the Department does not provide a
regulatory flexibility analysis. See 5 U.S.C. 553(a)(2).
D. Unfunded Mandates Act of 1995
The Unfunded Mandates Act of 1995 requires agencies to prepare
several analytical statements before proposing any rule that may result
in annual expenditures of $100 million or more in State, local, or
Indian Tribal governments. Since this final rule will not result in
expenditures of this magnitude, the Department certifies that such
statements are not necessary.
E. Executive Order 14192 (Unleashing Prosperity Through Deregulation)
Executive Order 14192 requires an agency, unless prohibited by law,
to identify at least 10 existing regulations to be repealed when the
agency publicly proposes for notice and comment or otherwise
promulgates a new regulation. In furtherance of this requirement,
section 3(c) of the Order requires that ``any new incremental costs
associated with new regulations shall, to the extent permitted by law,
be offset by the elimination of existing costs associated with at least
10 prior regulations.'' Id. Executive Order 14192 exempts from these
requirements ``regulations issued with respect to a foreign affairs-
related function of the United States.'' This rule is issued with
respect to foreign affairs-related functions and is thus exempt from
Executive Order 14192 requirements.
F. Executive Order 14294 (Fighting Overcriminalization in Federal
Regulations)
Executive Order 14294 requires agencies promulgating regulations
with criminal regulatory offenses potentially subject to criminal
enforcement to ``explicitly describe the conduct subject to criminal
enforcement, the authorizing statutes, and the mens rea standard
applicable to'' each element of those offenses. This rule does not
impose a criminal regulatory penalty and is thus exempt from Executive
Order 14294 requirements.
G. Executive Orders 12372 and 13132--Federalism
This regulation will not have substantial direct effects on the
states, on the relationship between the national government and the
states, or on the distribution of power and responsibilities among the
various levels of government. Therefore, in accordance with section 6
of Executive Order 13132, it is determined that this rule does not have
sufficient federalism implications to require consultations or warrant
the preparation of a federalism summary impact statement. The
regulations implementing E.O. 12372 regarding intergovernmental
[[Page 3352]]
consultation on Federal programs and activities do not apply to this
regulation.
H. Executive Order 13175--Consultation With Tribal Governments
The Department has determined that this rulemaking will not have
Tribal implications, will not impose substantial direct compliance
costs on Indian Tribal governments, and will not preempt Tribal law.
Accordingly, the requirements of E.O. 13175 do not apply to this rule.
I. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) defines ``collection of
information'' to mean ``the obtaining, causing to be obtained,
soliciting, or requiring the disclosure to third parties or the public,
of facts or opinions by or for an agency, regardless of form or
format.'' 44 U.S.C. 3502(3)(A). Under the PRA, a Federal agency cannot
conduct or sponsor a collection of information unless OMB approves it
and the agency displays a currently valid OMB control number. 44 U.S.C.
3507. Also, notwithstanding any other provision of law, no individual
or organization shall be subject to penalty for failing to comply with
a collection of information if the collection of information does not
display a currently valid OMB control number. 44 U.S.C. 3512. The
Department will not enforce any information collection requirements
described in this rule until OMB's approval and will publish separate
60- and 30-day notices in the Federal Register soliciting public
comment on the burden estimates provided below.
Title of Information Collection: Foreign Assistance Requirements.
OMB Control Number: 1405-XXXX.
Type of Request: New collection.
Originating Office: Department of State, Bureau of Global
Acquisitions.
Form Number: No form.
Respondents: Offerors and awardees of Department of State foreign
assistance.
Estimated Number of Respondents: 2,500.
Estimated Number of Responses: 2,500.
Average Time per Response: 261 hours.
Total Estimated Burden Hours: 652,500 hours.
Estimated Burden Hour Costs: $114,052,700.
Frequency: On occasion.
Obligation to Respond: Mandatory.
J. Congressional Review Act
The Office of Information and Regulatory Affairs has determined
that this final rule meets the criteria in the Congressional Review Act
(CRA) at 5 U.S.C. 804(2) and will comply with the applicable
requirements at 5 U.S.C. 801. However, the Department has also
determined that there is good cause to exempt this rule from the 60-day
delay of effect at 5 U.S.C. 801(a)(3)(A). Specifically, the requirement
for a delayed effective date does not apply because notice and public
procedure are not required for this rule by the APA and thus are
unnecessary for the purposes of the CRA under 5 U.S.C. 808(2). As noted
above, this rule involves a matter relating to grants. See 5 U.S.C.
553(a)(2). In addition, this rule involves the foreign affairs
functions of the United States. See 5 U.S.C. 553(a)(1).
List of Subjects in 2 CFR Part 604
Administrative practice and procedure, Grant programs.
0
For the reasons set forth above, the Department of State adds part 604
to title 2 of the Code of Federal Regulations to read as follows:
PART 604--COMBATING DISCRIMINATORY EQUITY IDEOLOGY IN FOREIGN
ASSISTANCE
Sec.
604.10 Applicability.
604.20 Award term.
Appendix A to Part 604--Requirements and Eligibility Criteria for
Recipients of Foreign Assistance
Authority: 5 U.S.C. 301; 22 U.S.C. 2651a, 22 U.S.C. 2151, 22
U.S.C. 2451, 22 U.S.C. 1461; 2 CFR part 200.
PART 604--COMBATING DISCRIMINATORY EQUITY IDEOLOGY IN FOREIGN
ASSISTANCE
Sec. 604.10 Applicability.
This part establishes an award term for recipients and
subrecipients of Federal awards subsidized in whole or in part by
foreign assistance funds administered by the Department of State. The
award term under this part must generally be included in all foreign
assistance solicitations and all resulting awards, including all
grants, cooperative agreements, and voluntary contributions, whenever
implementation of the activity involves foreign assistance, to, or
implemented by, foreign nongovernmental organizations, international
organizations, and United States nongovernmental organizations. The
award term under this part may but need not be included in whole or in
part, as applicable, in agreements with foreign governments and
parastatals (e.g., government-to-government agreements or other
agreements with host governments), and agreements with bilateral
governmental donors if the Department of State assesses such term is
appropriate for that agreement.
Sec. 604.20 Award term.
The award term in appendix A to this part will be incorporated, as
applicable, in awards for foreign assistance administered by the
Department of State.
(a) The following definitions apply for purposes of the award term
in appendix A to this part:
(1)(i) Discriminatory equity ideology is an ideology that treats
individuals as members of preferred or disfavored groups, rather than
as individuals, and minimizes agency, merit, and capability in favor of
generalizations, including that:
(A) Members of one race, color, religion, sex, or national origin
are morally or inherently superior to members of another race, color,
religion, sex, or national origin;
(B) An individual, by virtue of the individual's race, color,
religion, sex, or national origin, is inherently racist, sexist, or
oppressive, whether consciously or unconsciously;
(C) An individual's moral character or status as privileged,
oppressing, or oppressed is primarily determined by the individual's
race, color, religion, sex, or national origin;
(D) Members of one race, color, religion, sex, or national origin
cannot and should not attempt to treat others without respect to their
race, color, religion, sex, or national origin;
(E) An individual, by virtue of the individual's race, color,
religion, sex, or national origin, bears responsibility for, should
feel guilt, anguish, or other forms of psychological distress because
of, should be discriminated against, blamed, or stereotyped for, or
should receive adverse treatment because of actions committed in the
past by other members of the same race, color, religion, sex, or
national origin, in which the individual played no part;
(F) An individual, by virtue of the individual's race, color,
religion, sex, or national origin, should be discriminated against or
receive adverse treatment to achieve diversity, equity, or inclusion;
(G) Virtues such as merit, excellence, hard work, fairness,
neutrality, objectivity, and racial colorblindness are racist or sexist
or were created by members of a particular race, color, religion, sex,
or national origin to oppress members of another race, color, religion,
sex, or national origin; or
(H) The United States is fundamentally racist, sexist, or otherwise
discriminatory.
[[Page 3353]]
(ii) To promote discriminatory equity ideology includes using or
teaching education materials (including books, curricula, and media)
that advance this ideology.
(iii) Action by an individual who is acting in his or her personal
capacity shall not be attributed to an organization with which the
individual is associated, provided that the individual is neither on
duty nor acting on the organization's premises, and provided that the
organization neither endorses, nor provides financial support for, the
action and takes reasonable steps to ensure the individual does not
improperly represent that he or she is acting on behalf of the
organization.
(2) Unlawful diversity, equity, and inclusion-related
discrimination (or Unlawful DEI-related discrimination) means
discrimination on the basis of race, color, religion, or national
origin if such discrimination violates U.S. Federal antidiscrimination
law or would violate U.S. Federal antidiscrimination law if it occurred
inside the United States, including the use of those characteristics as
a selection criterion or preference for, or basis for exclusion from,
employment, contracting, program participation, resource allocation, or
similar activities, opportunities, or benefits. Such term includes all
conduct that discriminates on the basis of race, color, religion, or
national origin that violates U.S. Federal antidiscrimination law or
would violate U.S. Federal antidiscrimination laws if it occurred
inside the United States. For illustrative examples of unlawful DEI-
related discrimination, see the Attorney General's Guidance for
Recipients of Federal Funding Regarding Unlawful Discrimination (July
29, 2025). Such term does not apply to a religious corporation,
association, or society with respect to the employment of individuals
of a particular religion to perform work connected with the carrying on
by such corporation, association, or society of its religious
activities. Such term shall also not apply to decisions by any
religious corporation, association, or society regarding the employment
of individuals who perform religious functions or other key roles for
such entities. See Our Lady of Guadalupe School v. Morrissey-Berru, 591
U.S. 732 (2020); Hosanna-Tabor Evangelical Lutheran Church and School
v. EEOC, 565 U.S. 171 (2012).
(3) Foreign assistance is Federal funding administered by the
Department of State appropriated under title III of, or under the
``International Narcotics Control and Law Enforcement,''
``Nonproliferation, Anti-Terrorism, Demining and Related Programs,''
``Peacekeeping Operations,'' and ``International Organizations and
Programs'' headings of, the annual Department of State, Foreign
Operations, and Related Programs Appropriations Act.
(4) To furnish foreign assistance means transferring foreign
assistance funds provided under the award or goods financed with such
funds to another entity. This does not include providing technical
assistance or training (including costs directly related to such
assistance or training for individuals), unless the entity receives a
sub-award of foreign assistance funds under the award. Additionally,
furnishing foreign assistance does not include purchasing goods or
services from the entity.
(5) To control an organization means to possess the power to
direct, or cause the direction of, its management, personnel, and
policies.
(6) A foreign non-governmental organization (NGO) is any non-
governmental organization or entity, whether non-profit or profit-
making (including any commercial firm and educational institution), not
organized or existing under the laws of the United States, any State of
the United States, the District of Columbia, the Commonwealth of Puerto
Rico, or any other territory or possession of the United States.
(7) A United States non-governmental organization (NGO) is any non-
governmental organization or entity, whether non-profit or profit-
making (including any commercial firm and educational institution),
organized or existing under the laws of the United States, any State of
the United States, the District of Columbia, the Commonwealth of Puerto
Rico, or any other territory or possession of the United States.
(8) An international organization (IO) is--
(i) Any organization designated as being entitled to enjoy the
privileges, exemptions, and immunities under the International
Organizations Immunities Act;
(ii) Any organization treated as a public international
organization pursuant to the regulations or policies of the Department
of State;
(iii) Any organization established by international agreement and
whose governing body is composed principally of representatives of
national governments; or
(iv) Any other multilateral entity in which sovereign nations
participate.
(9) To provide financial support means to provide funds from any
source and for any purpose to a foreign NGO or IO through an award,
sub-award, contract, sub-contract, grant under contract, or other
written agreement or donation of funds.
(10) A foreign government is any department, agency, independent
establishment, or other entity of the government of a foreign country.
(11) A parastatal is a foreign-government-owned organization
operated as a commercial company or other organization, including non-
profits, or enterprises in which foreign governments or foreign
government agencies have a controlling interest.
(b) See appendix A to this part for the requirements and
eligibility criteria for recipients of foreign assistance.
(c) With respect to United States non-governmental organizations,
the award term shall be construed consistent with the First Amendment
to the United States Constitution and shall not be construed to
restrict the freedoms of speech or association of such organizations
when using non-Federal funds outside the scope of a program, project or
activity for which foreign assistance is made available.
(d) The Secretary of State or Under Secretary of State for Foreign
Assistance, Humanitarian Affairs, and Religious Freedom may waive the
application of this part or any of its elements if a waiver is deemed
necessary for national security or foreign policy purposes.
(e) In the event of a conflict between a term of the award term and
local law, an exemption may be sought from such term from the
Department of State to avoid a violation of the award term.
(f) In determining whether an entity is eligible to be a recipient
or sub-recipient of foreign assistance under the award, the action of
separate entities shall not be imputed to the recipient or sub-
recipient, unless, in the judgment of the Department of State, a
separate entity is being used purposefully to avoid the provisions of
this part. Separate entities are those that have distinct legal
existence in accordance with the laws of the countries in which they
are organized. Entities that are separately organized shall not be
considered separate, however, if one is controlled by the other. The
recipient may request the approval of its Agreement Officer to treat as
separate the activities of two or more entities, which would not be
considered separate under the preceding sentence. The recipient must
provide a written justification to the Department of State that the
activities of the organizations are sufficiently distinct to warrant
not imputing the activity of one to the other.
[[Page 3354]]
(g) If anything in the award term, or the application of this part
to any person or circumstance, is held to be unconstitutional, the
remainder of this part and the application of such to any person or
circumstance shall not be affected thereby.
(h) The award term in appendix A to this part shall be inserted
verbatim in sub-awards in accordance with the terms of paragraphs (a)
and (b) of this section.
Appendix A to Part 604--Requirements and Eligibility Criteria for
Recipients of Foreign Assistance
I. Grants and Cooperative Agreements to Foreign Non-Governmental
Organizations
(1) The recipient agrees that it will not, during the term of
this award, outside the United States (including its territories and
possessions), promote discriminatory equity ideology, engage in
unlawful DEI-related discrimination, or provide financial support to
any other foreign NGO or IO that conducts such activities.
(2) The recipient agrees that authorized representatives of the
U.S. Government may, at any reasonable time, announced or
unannounced, consistent with Part 200 of Title 2 of the Code of
Federal Regulations (CFR): (i) inspect the documents, trainings, and
materials maintained or prepared by the recipient in the usual or
required course of its operations that describe the priorities and
activities of the recipient, including reports, brochures and
service statistics; (ii) observe the activities conducted by the
recipient, (iii) consult with personnel of the recipient and those
who receive the services of the recipient; and, (iv) obtain a copy
of audited financial statements or reports of the recipient, as
applicable. Interaction with service recipients will comply with all
applicable rules and regulations regarding privacy.
(3) In the event authorized representatives of the U.S.
Government have reasonable cause to believe that the recipient may
have violated any undertaking required by these Requirements and
Eligibility Criteria, the recipient must make available to the
Department of State such books and records and other information as
the Department of State may reasonably request to determine whether
a violation of that undertaking has occurred, consistent with Part
200 of Title 2 of the CFR.
(4) The U.S. Government shall terminate foreign assistance
furnished to the recipient under this award if the recipient
violates any undertaking required by this award term, unless the
Department of State determines, consistent with Sec. 200.339 of
Title 2 of the CFR, that other corrective action is warranted.
(5) In addition to other remedies available to the U.S.
Government, the recipient's failure to comply with the requirements
of this award provision may result in--
(i) Suspension of payments until the sub-recipient has taken
appropriate remedial action; and/or
(ii) Suspension or debarment.
(6) In the event of termination, the recipient must refund to
the Department of State any unexpended amounts furnished to the
recipient under this award, plus an amount equivalent to that used
by the recipient to engage in any activity that violates this award
term while receiving funding under this award. The amount to be
refunded to the Department of State under this subparagraph (6) may
not exceed the total amount of foreign assistance furnished under
this award.
(7) The recipient may not furnish foreign assistance under this
award to any other foreign NGO, IO, or United States NGO (the sub-
recipient), unless the recipient's agreement with the sub-recipient
contains the same terms and conditions as described in sub-paragraph
(8) below.
(8) Prior to entering into an agreement to furnish foreign
assistance to any other foreign NGO, IO, or United States NGO, the
recipient, must ensure that such agreement with the sub-recipient
includes the following terms:
(i) While receiving foreign assistance under this award:
(A) If the sub-recipient is a foreign NGO or IO, the sub-
recipient will not promote discriminatory equity ideology, engage in
unlawful DEI-related discrimination, or provide financial support to
any other foreign NGO or IO that conducts such activities.
(B) If the sub-recipient is a United States NGO:
(1) The sub-recipient will not, outside the United States
(including its territories and possessions), engage in unlawful DEI-
related discrimination.
(2) The sub-recipient will not, within the scope of any program,
project, or activity for which foreign assistance funds are made
available under this award, promote discriminatory equity ideology
or engage in unlawful DEI-related discrimination.
Subject to sub-paragraph (8)(i)(B)(1) above, the sub-recipient
is not prohibited from lawfully promoting discriminatory equity
ideology, outside the scope of a program, project, or activity for
which funds are made available under this award, so long as the sub-
recipient uses funds from sources other than the U.S. Government to
do so.
(3) The sub-recipient agrees that any program, project, or
activity for which funds are made available under this award must be
organized so that the program, project, or activity is physically
and financially separate from the activities described in sub-
paragraph (8)(i)(B)(2) above (``prohibited activities''), such that
there is an objective integrity and independence from such
activities. Mere bookkeeping separation of funds under the award
from other monies is not sufficient. Whether such objective
integrity and independence exist will be determined based on a
review of facts and circumstances, including:
(i) The existence of separate, accurate accounting records;
(ii) The degree of separation from facilities (e.g., treatment,
consultation, examination and waiting rooms, office entrances and
exits, and educational services) in which the prohibited activities
occurs and the extent of such prohibited activities;
(iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
(iv) The extent to which signs and other forms of identification
are present, and signs and material that refer to, promote, or
constitute, prohibited activities, are absent.
(ii) The recipient and authorized representatives of the U.S.
Government may, at any reasonable time, announced or unannounced,
consistent with Part 200 of Title 2 of the CFR:
(A) inspect the documents, trainings, and materials maintained
or prepared by the sub-recipient in the usual or required course of
its operations that describe the activities of the sub-recipient,
including reports, brochures and service statistics;
(B) observe activities conducted by the sub-recipient;
(C) consult with personnel of the sub-recipient and those who
receive the services of the sub-recipient; and
(D) obtain a copy of audited financial statements or reports of
the sub-recipient, as applicable.
(iii) In the event that the recipient or an authorized
representative of the U.S. Government has reasonable cause to
believe that a sub-recipient may have violated any of its
undertakings under this award term, the recipient will review the
foreign assistance program of the sub-recipient to determine whether
a violation of such undertaking has occurred. The sub-recipient must
make available to the recipient such books and records and other
information as may be reasonably requested to conduct the review.
Authorized representatives of the U.S. Government may review the
foreign assistance program of the sub-recipient under these
circumstances, and the sub-recipient must provide access on a timely
basis to such authorized representatives to such books and records
and other information upon request, consistent with Part 200 of
Title 2 of the CFR.
(iv) The U.S. Government shall terminate foreign assistance
provided to the sub-recipient under this award if the sub-recipient
violates any award terms under sub-paragraphs (8)(i)-(iii) above,
unless the Department of State determines, consistent with Sec.
200.339 of Title 2 of the CFR, that other corrective action is
warranted.
(v) In addition to other remedies available to the U.S.
Government, the sub-recipient's failure to comply with the
requirements of this award provision may result in--
(A) Suspension of payments until the sub-recipient has taken
appropriate remedial action; and/or
(B) Suspension or debarment.
(vi) In the event of termination, the sub-recipient must refund
to the recipient any unexpended amounts furnished to the sub-
recipient under this award, plus an amount equivalent to that used
by the sub-recipient for activities prohibited under the terms of
this award, up to the total amount of foreign assistance furnished
to the sub-recipient under this award. Where the Department of State
is not otherwise engaged in the determination to terminate a sub-
recipient's award, the recipient must notify the Department of State
of any action taken for a violation of any undertaking required
under sub-paragraphs (8)(i)-(iii) above.
[[Page 3355]]
(vii) The sub-recipient may furnish foreign assistance under
this award to any foreign NGO, IO, or U.S. NGO, only if the sub-
recipient's agreement with the sub-sub-recipient contains the same
terms and conditions as those provided by the recipient to the sub-
recipient as described in sub-paragraphs (8)(i)-(iv) above.
(9) Where the terms and conditions of the award require the
approval of sub-awards by the Department of State, the recipient
must, consistent with Part 200 of Title 2 of the CFR, include a
description of the due diligence performed by the recipient on the
sub-recipient before furnishing foreign assistance under this award.
(10) The recipient is liable to the U.S. Government for a refund
for a violation by the sub-recipient of any requirement of this
award term only if: (i) the recipient furnishes foreign assistance
under this award to a subrecipient knowing that the subrecipient is
in likely violation of the applicable award terms of this award
term; (ii) the sub-recipient did not abide by the award terms
required by sub-paragraphs (8)(i)-(iii) above, and the recipient
failed to make reasonable due diligence efforts prior to furnishing
foreign assistance to the sub-recipient; or, (iii) the recipient
knows or has reason to know, by virtue of the monitoring that the
recipient is required to perform under the terms of this award, that
a sub-recipient has violated any of the award terms required by sub-
paragraphs (8)(i)-(iii) above, and the recipient fails to terminate
foreign assistance to the sub-recipient, or fails to require the
sub-recipient to terminate foreign assistance furnished under a sub-
award that violates any award terms required by sub-paragraphs
(8)(i)-(iii), above, or fails to take other appropriate corrective
action consistent with sub-paragraph (8)(iv) above.
(11) Recipient acknowledges that authorized representatives of
the U.S. Government may make independent inquiries in the community
served by the recipient or a sub-recipient under this award
regarding whether it is in compliance with the award terms required
by sub-paragraphs (8)(i)-(iii) above. Interaction with service
recipients will comply with all applicable rules and regulations
regarding privacy.
II. Grants and Cooperative Agreements With U.S. Nongovernmental
Organizations
(1) The recipient agrees that it will not, during the term of
this award, outside the United States (including its territories and
possessions), engage in unlawful DEI-related discrimination.
(2) The recipient agrees that, within the scope of any program,
project, or activity for which foreign assistance funds are made
available under this award it will not promote discriminatory equity
ideology or engage in unlawful DEI-related discrimination.
Subject to sub-paragraph (1), the recipient is not prohibited
from promoting discriminatory equity ideology outside the scope of a
program, project, or activity for which funds are made available
under this award, so long as the recipient uses funds from sources
other than the U.S. Government to do so.
(3) The recipient agrees that any program, project, or activity
for which funds are made available under this award must be
organized so that the program, project, or activity is physically
and financially separate from activities prohibited by sub-paragraph
(2) above (``prohibited activities''), such that there is an
objective integrity and independence from such activities. Mere
bookkeeping separation of funds under the award from other monies is
not sufficient. Whether such objective integrity and independence
exist will be determined based on a review of facts and
circumstances, including:
(i) The existence of separate, accurate accounting records;
(ii) The degree of separation from facilities (e.g., treatment,
consultation, examination and waiting rooms, office entrances and
exits, and educational services) in which the prohibited activities
occur and the extent of such prohibited activities;
(iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
(iv) The extent to which signs and other forms of identification
are present, and signs and material that refer to, promote, or
constitute, prohibited activities, are absent.
(4) The recipient agrees that authorized representatives of the
U.S. Government may, at any reasonable time, announced or
unannounced, consistent with Part 200 of Title 2 of the Code of
Federal Regulations (CFR): (i) inspect the documents, trainings, and
materials maintained or prepared by the recipient in the usual or
required course of its operations that describe the priorities and
activities of the recipient, including reports, brochures and
service statistics; (ii) observe the activities conducted by the
recipient, (iii) consult with personnel of the recipient and those
who receive the services of the recipient; and, (iv) obtain a copy
of audited financial statements or reports of the recipient, as
applicable.
(5) In the event an authorized representative of the U.S.
Government has reasonable cause to believe that the recipient may
have violated any of its undertakings under this award term, the
recipient must make available to such authorized representative such
books and records and other information as the authorized
representative may reasonably request to determine whether a
violation of that undertaking has occurred, consistent with Part 200
of Title 2 of the CFR.
(6) U.S. foreign assistance furnished to the recipient under
this award must be terminated if the recipient violates any
undertaking required by this award term, unless the Department of
State determines, consistent with Sec. 200.339 of Title 2 of the
CFR, that other corrective action is warranted.
(7) In addition to other remedies available to the U.S.
Government, the recipient's failure to comply with the requirements
of this award provision may result in--
(i) Suspension of payments until the recipient has taken
appropriate action; and/or
(ii) Suspension or debarment.
(8) In the event of termination, the recipient must refund to
the Department of State any unexpended amounts furnished to the
recipient under this award, plus an amount equivalent to that used
by the recipient to engage in activities prohibited under the terms
of this award while receiving funding under this award. The amount
to be refunded to the Department of State under this subparagraph
(8) may not exceed the total amount of foreign assistance furnished
under this award.
(9) The recipient agrees that it will not furnish foreign
assistance under this award to any other foreign NGO, IO, or United
States non-governmental organization (NGO), (the sub-recipient),
unless the recipient's agreement with the sub-recipient contains the
same terms and conditions as described in subparagraph (10), below.
(10) Prior to entering into an agreement to furnish foreign
assistance to a foreign NGO, IO, or United States NGO, (the sub-
recipient) under this award, the recipient must ensure that such
agreement with the sub-recipient includes the following terms:
(i) While receiving foreign assistance under this award:
(A) If the sub-recipient is a foreign NGO or IO, the sub-
recipient will not promote discriminatory equity ideology, engage in
unlawful DEI-related discrimination, or provide financial support to
any other foreign NGO or IO that conducts such activities.
(B) If the sub-recipient is a United States NGO:
(1) the sub-recipient will not, outside the United States
(including its territories and possessions) engage in unlawful DEI-
related discrimination, an
(2) the sub-recipient will not, within the scope of any program,
project, or activity for which foreign assistance funds are made
available under this award, promote discriminatory equity ideology
or engage in unlawful DEI-related discrimination.
Subject to sub-paragraph (10)(i)(B)(1) above, the sub-recipient
is not prohibited from lawfully promoting discriminatory equity
ideology outside the scope of a program, project, or activity for
which funds are made available under this award, so long as the sub-
recipient uses funds from sources other than the U.S. Government to
do so.
(3) The sub-recipient agrees that any program, project, or
activity for which funds are made available under this award must be
organized so that the program, project, or activity is physically
and financially separate from activities described in sub-paragraph
(10)(i)(B)(2) above (``prohibited activities''), such that there is
an objective integrity and independence from such activities. Mere
bookkeeping separation of funds under the award from other monies is
not sufficient. Whether such objective integrity and independence
exist will be determined based on a review of facts and
circumstances, including:
(i) The existence of separate, accurate accounting records;
(ii) The degree of separation from facilities (e.g., treatment,
consultation, examination and waiting rooms, office entrances and
exits, and educational services) in which the prohibited activities
occur and the extent of such prohibited activities;
[[Page 3356]]
(iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
(iv) The extent to which signs and other forms of identification
are present, and signs and material that refer to, promote, or
constitute, prohibited activities, are absent.
(ii) The recipient and authorized representatives of the U.S.
Government may, at any reasonable time, announced or unannounced,
consistent with Part 200 of Title 2 of the CFR: (I) inspect the
documents, trainings, and materials maintained or prepared by the
sub-recipient in the usual or required course of its operations that
describe the priorities and activities of the sub-recipient,
including reports, brochures and service statistics; (II) observe
the activities conducted by the sub-recipient; (III) consult with
personnel of the sub-recipient and those who receive the services of
the sub-recipient; and, (IV) obtain a copy of audited financial
statements or reports of the sub-recipient, as applicable.
(iii) In the event that the recipient or an authorized
representative of the U.S. Government has reasonable cause to
believe that a sub-recipient may have violated any of its
undertakings under this award term, the recipient will review the
foreign assistance program of the sub-recipient to determine whether
a violation of such undertaking has occurred. The sub-recipient must
make available to the recipient such books and records and other
information as may be reasonably requested to conduct the review.
Authorized representatives of the U.S. Government may review the
foreign assistance program of the sub-recipient under these
circumstances, and the sub-recipient must provide access to such
authorized representatives on a timely basis to such books and
records and other information upon request, consistent with Part 200
of Title 2 of the CFR.
(iv) The U.S. Government shall terminate foreign assistance
provided to the sub-recipient under this award if the sub-recipient
violates any award terms required by subparagraphs (10)(i)-(iii)
above, unless the Department of State determines, consistent with
Sec. 200.339 of Title 2 of the CFR, that other corrective action is
warranted.
(v) In addition to other remedies available to the U.S.
Government, the sub-recipient's failure to comply with the
requirements of this award provision may result in--
(A) Suspension of payments until the sub-recipient has taken
appropriate remedial action; and/or
(B) Suspension or debarment.
(vi) In the event of termination, the sub-recipient must refund
to the recipient any unexpended amounts furnished to the sub-
recipient under this award, plus an amount equivalent to that used
by the sub-recipient for activities prohibited under the terms of
this award, up to the total amount of foreign assistance furnished
to the sub-recipient under this award. Where the Department of State
is not otherwise engaged in the determination to terminate a
recipient's sub-award, the recipient must notify the Department of
State of any action taken for a violation of any undertaking
required under subparagraphs (10)(i)-(iii) above; and
(vii) The sub-recipient may furnish foreign assistance under
this award to a foreign NGO, IO, or United States NGO (the sub-sub-
recipient), only if the sub-recipient's sub-agreement with the sub-
sub-recipient contains the same terms and conditions as those
provided by the recipient to the sub-recipient as described in sub-
paragraphs (10)(i)-(iv) above.
(11) Where the terms and conditions of the award require the
approval of subawards by the Department of State, the recipient
must, consistent with Part 200 of Title 2 of the CFR, include a
description of the due diligence performed by the recipient on the
sub-recipient before furnishing foreign assistance under this award.
(12) The recipient is liable to the Department of State for a
refund for a violation by the sub-recipient of any requirement of
this award term only if: (i) the recipient knowingly furnishes
foreign assistance under this award to a sub-recipient, knowing that
the subrecipient is in violation of the applicable award terms of
this award term; or, (ii) the sub-recipient did not abide by its
award terms required by subparagraphs (10)(i)-(iii) above, and the
recipient failed to make reasonable due diligence efforts prior to
furnishing foreign assistance to the sub-recipient; or, (iii) the
recipient knows, or has reason to know, by virtue of the monitoring
that the recipient is required to perform under the terms of this
award, that a sub-recipient has violated any of the award terms
required by subparagraphs (10)(i)-(iii) above, and the recipient
fails to terminate foreign assistance to the sub-recipient, or fails
to require the sub-recipient to terminate assistance furnished under
a sub-award that violates any award terms required by subparagraphs
(10)(i)-(iii) above, or fails to take other appropriate corrective
action consistent with subparagraph (10)(iv) above.
(13) Recipient acknowledges that authorized representatives of
the U.S. Government may make independent inquiries in the community
served by a sub-recipient under this award regarding whether such
sub-recipient is in compliance with its award terms required by
subparagraphs (10)(i)-(iii) above. Interaction with service
recipients will comply with all applicable rules and regulations
regarding privacy.
III. Grants and Cooperative Agreements With Foreign Governments and
Parastatals
(1) The recipient agrees that foreign assistance funds it
receives under this award will not be used to promote discriminatory
equity ideology or to engage in unlawful DEI-related discrimination.
(2) The recipient agrees that if it engages in any activity
described in sub-paragraph (1) using funds from sources other than
the U.S. Government, any foreign assistance funds under this award
must be placed in a segregated account to ensure that such funds may
not be used to support such activity of the government or
parastatal.
(3) The recipient agrees that authorized representatives of the
U.S. Government may, at any reasonable time, announced or
unannounced, consistent with Part 200 of Title 2 of the Code of
Federal Regulations (CFR): (i) inspect the documents, trainings, and
materials maintained or prepared by the recipient in the usual or
required course of its operations that describe the priorities and
activities of the recipient, including reports, brochures and
service statistics; (ii) observe the activities conducted by the
recipient, (iii) consult with personnel of the recipient and those
who receive the services of the recipient; and, (iv) obtain a copy
of audited financial statements or reports of the recipient, as
applicable.
(4) In the event an authorized representative of the U.S.
Government has reasonable cause to believe that the recipient may
have violated any of its undertakings under this award term, the
recipient must make available to such authorized representative such
books and records and other information as the authorized
representative may reasonably request to determine whether a
violation of that undertaking has occurred, consistent with Part 200
of Title 2 of the CFR.
(5) U.S. foreign assistance furnished to the recipient under
this award must be terminated if the recipient violates any
undertaking required by this award term, unless the Department of
State determines, consistent with Sec. 200.339 of Title 2 of the
CFR, that other corrective action is warranted.
(6) In addition to other remedies available to the U.S.
Government, the recipient's failure to comply with the requirements
of this award provision may result in--
(i) Suspension of payments until the recipient has taken
appropriate remedial action; and/or
(ii) Suspension or debarment.
(7) In the event of termination, the recipient must refund to
the Department of State any unexpended amounts furnished to the
recipient under this award, plus an amount equivalent to that used
by the recipient to engage in activities prohibited under the terms
of this award while receiving funding under this award. The amount
to be refunded to the Department of State under this subparagraph
(7) may not exceed the total amount of foreign assistance furnished
under this award.
(8) The recipient agrees that it will not furnish foreign
assistance under this award to any foreign non-governmental
organization (NGO), international organization (IO), or United
States NGO (the sub-recipient), unless the recipient's agreement
with the sub-recipient contains the same terms and conditions as
described in sub-paragraph (9), below.
(9) Prior to entering into an agreement to furnish foreign
assistance to a foreign NGO, IO, or a United States NGO (the sub-
recipient) under this award, the recipient must ensure that such
agreement with the sub-recipient includes the following terms:
(i) While receiving foreign assistance under this award:
(A) If the sub-recipient is a foreign NGO or IO, the sub-
recipient will not, outside the United States (including its
territories and possessions), promote discriminatory equity
ideology, engage in unlawful DEI-related discrimination, or provide
financial support to any other foreign NGO or IO that conducts such
activities.
[[Page 3357]]
(B) If the sub-recipient is a United States NGO:
(1) The sub-recipient will not, outside the United States
(including its territories and possessions), engage in unlawful DEI-
related discrimination.
(2) The sub-recipient will not, within the scope of any program,
project, or activity for which foreign assistance funds are made
available under this award, promote discriminatory equity ideology
or engage in unlawful DEI-related discrimination.
Subject to sub-paragraph (9)(i)(B)(1) above, the sub-recipient
is not prohibited from lawfully promoting discriminatory equity
ideology outside the scope of a program, project, or activity for
which funds are made available under this award, so long as the sub-
recipient uses funds from sources other than the U.S. Government to
do so.
(3) The sub-recipient agrees that any program, project, or
activity for which funds are made available under this award must be
organized so that the program, project, or activity is physically
and financially separate from activities described in sub-paragraph
(9)(i)(B)(2) above (``prohibited activities''), such that there is
an objective integrity and independence from such activities. Mere
bookkeeping separation of funds under the award from other monies is
not sufficient. Whether such objective integrity and independence
exist will be determined based on a review of facts and
circumstances, including:
(i) The existence of separate, accurate accounting records;
(ii) The degree of separation from facilities (e.g., treatment,
consultation, examination and waiting rooms, office entrances and
exits, and educational services) in which the prohibited activity
occurs and the extent of such prohibited activities;
(iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
(iv) The extent to which signs and other forms of identification
are present, and signs and material that refer to, promote, or
constitute, prohibited activities, are absent.
(ii) The recipient and authorized representatives of the U.S.
Government may, at any reasonable time, announced or unannounced,
consistent with Part 200 of Title 2 of the CFR: (I) inspect the
documents, trainings, and materials maintained or prepared by the
sub-recipient in the usual or required course of its operations that
describe the priorities and activities of the sub-recipient,
including reports, brochures and service statistics; (II) observe
the activities conducted by the sub-recipient; (III) consult with
personnel of the sub-recipient and those who receive the services of
the sub-recipient; and, (IV) obtain a copy of audited financial
statements or reports of the sub-recipient, as applicable.
(iii) In the event that the recipient or an authorized
representative of the U.S. Government has reasonable cause to
believe that a sub-recipient may have violated any of its
undertakings under this award term, the recipient will review the
foreign assistance program of the sub-recipient to determine whether
a violation of such undertaking has occurred. The sub-recipient must
make available to the recipient such books and records and other
information as may be reasonably requested to conduct the review.
Authorized representatives of the U.S. Government may review the
foreign assistance program of the sub-recipient under these
circumstances, and the sub-recipient must provide access to such
authorized representatives on a timely basis to such books and
records and other information upon request, consistent with Part 200
of Title 2 of the CFR.
(iv) The U.S. Government shall terminate foreign assistance
provided to the sub-recipient under this award if the sub-recipient
violates any award terms required by subparagraphs (9)(i)-(iii)
above, unless the Department of State determines, consistent with
Sec. 200.339 of Title 2 of the CFR, that other corrective action is
warranted.
(v) In addition to other remedies available to the U.S.
Government, the sub-recipient's failure to comply with the
requirements of this award provision may result in--
(A) Suspension of payments until the sub-recipient has taken
appropriate remedial action; and/or
(B) Suspension or debarment.
(vi) In the event of termination, the sub-recipient must refund
to the recipient any unexpended amounts furnished to the sub-
recipient under this award, plus an amount equivalent to that used
by the sub-recipient for activities prohibited under the terms of
this award, up to the total amount of foreign assistance furnished
to the sub-recipient under this award. Where the Department of State
is not otherwise engaged in the determination to terminate a
recipient's sub-award, the recipient must notify the Department of
State of any action taken for a violation of any undertaking
required under subparagraphs (9)(i)-(iii) above.
(vii) The sub-recipient may furnish foreign assistance under
this award to a foreign NGO, IO, or United States NGO, only if the
sub-recipient's sub-agreement with the sub-sub-recipient contains
the same terms and conditions as those provided by the recipient to
the sub-recipient as described in sub-paragraphs (9)(i)-(iv) above.
(10) Where the terms and conditions of the award require the
approval of subawards by the Department of State, the recipient
must, consistent with Part 200 of Title 2 of the CFR, include a
description of the due diligence performed by the recipient on the
sub-recipient before furnishing foreign assistance under this award.
(11) The recipient is liable to the Department of State for a
refund for a violation by the sub-recipient of any requirement of
this award term only if: (i) the recipient knowingly furnishes
foreign assistance under this award to a sub-recipient that is a
foreign NGO or IO, or to a United States NGO, knowing that the
subrecipient is in violation of the applicable award terms of this
award term; or, (ii) the sub-recipient did not abide by its award
terms required by subparagraphs (9)(i)-(iii) above, and the
recipient failed to make reasonable due diligence efforts prior to
furnishing foreign assistance to the sub-recipient; or, (iii) the
recipient knows, or has reason to know, by virtue of the monitoring
that the recipient is required to perform under the terms of this
award, that a sub-recipient has violated any of the award terms
required by subparagraphs (9)(i)-(iii) above, and the recipient
fails to terminate foreign assistance to the sub-recipient, or fails
to require the sub-recipient to terminate assistance furnished under
a sub-award that violates any award terms required by subparagraphs
(9)(i)-(iii) above, or fails to take other appropriate corrective
action consistent with subparagraph (9)(iv) above.
(12) Recipient acknowledges that authorized representatives of
the U.S. Government may make independent inquiries in the community
served by a sub-recipient under this award regarding whether such
sub-recipient is in compliance with its award terms required by
subparagraphs (9)(i)-(iii) above. Interaction with service
recipients will comply with all applicable rules and regulations
regarding privacy.
IV. Grants, Cooperative Agreements, and Voluntary Contributions to
International Organizations
(1) The recipient agrees that it will not, during the term of
this award, outside the United States (including its territories and
possessions) promote discriminatory equity ideology, engage in
unlawful diversity, equity, and inclusion (DEI)-related
discrimination, or provide financial support to any other foreign
NGO or IO that conducts such activities.
(2) The recipient agrees that authorized representatives of the
U.S. Government may, at any reasonable time, announced or
unannounced, consistent with Part 200 of Title 2 of the Code of
Federal Regulations (CFR): (i) inspect the documents, trainings, and
materials maintained or prepared by the recipient in the usual or
required course of its operations that describe the priorities and
activities of the recipient, including reports, brochures and
service statistics; (ii) observe the activities conducted by the
recipient, (iii) consult with personnel of the recipient and those
who receive the services of the recipient; and, (iv) obtain a copy
of audited financial statements or reports of the recipient, as
applicable. Interaction with service recipients will comply with all
applicable rules and regulations regarding privacy.
(3) In the event authorized representatives of the U.S.
Government have reasonable cause to believe that the recipient may
have violated any undertaking required by this award term, the
recipient must make available to the Department of State such books
and records and other information as the Department of State may
reasonably request to determine whether a violation of that
undertaking has occurred, consistent with Part 200 of Title 2 of the
CFR. In such an event, during the process of investigating any
suspected violation, the Department of State may additionally
suspend or withhold some or all payments of foreign assistance to
the recipient.
(4) The U.S. Government shall terminate foreign assistance
furnished to the recipient under this award if the recipient
violates any undertaking required by this award term, unless the
Department of State determines,
[[Page 3358]]
consistent with Sec. 200.339 of Title 2 of the CFR, that other
corrective action is warranted.
(5) In the event of termination, the recipient must refund to
the Department of State any unexpended amounts furnished to the
recipient under this award, plus an amount equivalent to that used
by the recipient to engage in any activity that violates this award
term while receiving funding under this award. The amount to be
refunded to the Department of State under this subparagraph (5) may
not exceed the total amount of foreign assistance furnished under
this award.
(6) The recipient may not furnish foreign assistance under this
award to any other foreign NGO, IO, or United States NGO, unless the
recipient's agreement with the sub-recipient contains the same terms
and conditions as described in sub-paragraph (7) below.
(7) Prior to entering into an agreement to furnish foreign
assistance to any other foreign NGO, IO, or United States NGO, the
recipient, consistent with Part 200 of Title 2 of the CFR, must
ensure that such agreement with the sub-recipient includes the
following terms:
(i) While receiving foreign assistance under this award,
(A) if the sub-recipient is a foreign NGO or IO, the sub-
recipient will not, outside the United States (including its
territories and possessions), promote discriminatory equity
ideology, engage in unlawful DEI-related discrimination, or provide
financial support to any other foreign NGO or IO that conducts such
activities.
(B) if the sub-recipient is a United States NGO:
(1) The sub-recipient will not, outside the United States
(including its territories and possessions), engage in unlawful DEI-
related discrimination.
(2) The sub-recipient will not, within the scope of any program,
project, or activity for which foreign assistance funds are made
available under this award, promote discriminatory equity ideology
or engage in unlawful DEI-related discrimination.
Subject to sub-paragraph (7)(i)(B)(1) above, the sub-recipient
is not prohibited from lawfully promoting discriminatory equity
ideology uses outside the scope of a program, project, or activity
for which funds are made available under this award, so long as the
sub-recipient funds from sources other than the U.S. Government to
do so.
(3) The sub-recipient agrees that any program, project, or
activity for which funds are made available under this award must be
organized so that the program, project, or activity is physically
and financially separate from the activities described in sub-
paragraph (7)(i)(B)(2) above (``prohibited activities''), such that
there is an objective integrity and independence from such
activities. Mere bookkeeping separation of funds under the award
from other monies is not sufficient. Whether such objective
integrity and independence exist will be determined based on a
review of facts and circumstances, including:
(i) The existence of separate, accurate accounting records;
(ii) The degree of separation from facilities (e.g., treatment,
consultation, examination and waiting rooms, office entrances and
exits, and educational services) in which the prohibited activities
occurs and the extent of such prohibited activities;
(iii) The existence of separate personnel, electronic or paper-
based health care records (if applicable), and workstations; and
(iv) The extent to which signs and other forms of identification
are present, and signs and material that refer to, promote, or
constitute, prohibited activities, are absent.
(ii) The recipient and authorized representatives of the U.S.
Government may, at any reasonable time, announced or unannounced,
consistent with Part 200 of Title 2 of the CFR: (I) inspect the
documents, trainings, and materials maintained or prepared by the
sub-recipient in the usual or required course of its operations that
describe the activities of the sub-recipient, including reports,
brochures and service statistics; (II) observe activities conducted
by the sub-recipient; (III) consult with personnel of the sub-
recipient and those who receive the services of the sub-recipient;
and, (IV) obtain a copy of audited financial statements or reports
of the sub-recipient, as applicable.
(iii) In the event that the recipient or an authorized
representative of the U.S. Government has reasonable cause to
believe that a sub-recipient may have violated any of its
undertakings under this award term, the recipient will review the
foreign assistance program of the sub-recipient to determine whether
a violation of such undertaking has occurred. The sub-recipient must
make available to the recipient such books and records and other
information as may be reasonably requested to conduct the review.
Authorized representatives of the U.S. Government may review the
foreign assistance program of the sub-recipient under these
circumstances, and the sub-recipient must provide access on a timely
basis to such authorized representatives to such books and records
and other information upon request, consistent with Part 200 of
Title 2 of the CFR. In such an event, during the process of
investigating any suspected violation, the Department of State may
additionally order the recipient to suspend or withhold some or all
payments of foreign assistance to the sub-recipient.
(iv) The U.S. Government shall terminate foreign assistance
provided to the sub-recipient under this award if the sub-recipient
violates any award terms under sub-paragraphs (7)(i)-(iii) above,
unless the Department of State determines, consistent with Sec.
200.339 of Title 2 of the CFR, that other corrective action is
warranted.
(v) In addition to other remedies available to the U.S.
Government, the sub-recipient's failure to comply with the
requirements of this award provision may result in--
(A) Suspension of payments until the sub-recipient has taken
appropriate remedial action; and/or
(B) Suspension or debarment.
(vi) In the event of termination, the sub-recipient must refund
to the recipient any unexpended amounts furnished to the sub-
recipient under this award, plus an amount equivalent to that used
by the sub-recipient for activities prohibited under the terms of
this award, up to the total amount of foreign assistance furnished
to the sub-recipient under this award. Where the Department of State
is not otherwise engaged in the determination to terminate a sub-
recipient's award, the recipient must notify the Department of State
of any action taken for a violation of any undertaking required
under sub-paragraphs (7)(i)-(iii) above.
(vii) The sub-recipient may furnish foreign assistance under
this award to any foreign NGO, IO, or U.S. NGO, only if the sub-
recipient's agreement with the sub-sub-recipient contains the same
terms and conditions as those provided by the recipient to the sub-
recipient as described in sub-paragraphs (7)(i)-(iv) above.
(8) Where the terms and conditions of the award require the
approval of sub-awards by the Department of State, the recipient
must, consistent with Part 200 of Title 2 of the CFR, include a
description of the due diligence performed by the recipient on the
sub-recipient before furnishing foreign assistance under this award.
(9) The recipient is liable to the U.S. Government for a refund
for a violation by the sub-recipient of any requirement of this
award term only if: (i) the recipient furnishes foreign assistance
under this award to a subrecipient knowing that the subrecipient is
in likely violation of the applicable award terms of this award
term; (ii) the sub-recipient did not abide by the award terms
required by sub-paragraphs (7)(i)-(iii) above, and the recipient
failed to make reasonable due diligence efforts prior to furnishing
foreign assistance to the sub-recipient; or, (iii) the recipient
knows or has reason to know, by virtue of the monitoring that the
recipient is required to perform under the terms of this award, that
a sub-recipient has violated any of the award terms required by sub-
paragraphs (7)(i)-(iii) above, and the recipient fails to terminate
foreign assistance to the sub-recipient, or fails to require the
sub-recipient to terminate foreign assistance furnished under a sub-
award that violates any award terms required by sub-paragraphs
(7)(i)-(iii), above, or fails to take other appropriate corrective
action consistent with sub-paragraph (7)(iv) above.
(10) Recipient acknowledges that authorized representatives of
the U.S. Government may make independent inquiries in the community
served by the recipient or a sub-recipient under this award
regarding whether it is in compliance with the award terms required
by sub-paragraphs (7)(i)-(iii) above. Interaction with service
recipients will comply with all applicable rules and regulations
regarding privacy.
Christopher T. Landau,
Deputy Secretary of State, U.S. Department of State.
[FR Doc. 2026-01517 Filed 1-23-26; 4:15 pm]
BILLING CODE 4710-10-P
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</html>Indexed from Federal Register on January 27, 2026.
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