The U.S. General Services Administration’s proposed anti-DEI certification requirement has triggered warnings across the higher-education sector that institutions could lose all federal funding if they do not sign and comply. Under the proposal, federal recipients would have to certify compliance with DEI-related executive orders and guidance, with potential violations including race-based scholarships and certain overcoming-obstacles narratives or diversity statements in hiring. Higher-ed groups urged GSA to rescind the plan, while legal experts warn the rule’s enforcement could prompt expensive litigation for institutions that cannot afford to challenge it. The report points to prior litigation outcomes affecting federal funding, while cautioning that a “bullying effect” could shape institutional behavior even when legal challenges are underway. The proposal also raises compliance risk for non-education federal contractors and nonprofits, broadening its reach across the higher-ed ecosystem.