State Department Withdraws Anti-Discrimination Rules for Foreign Aid
Published Date: 1/8/2025
Proposed Rule
Summary
The Department of State is pulling back two proposed rules that would have stopped discrimination in contracts and grants funded by U.S. foreign aid. This means contractors and grant recipients won’t face new nondiscrimination requirements for now. The withdrawal is official as of January 8, 2025, so anyone involved in these contracts or grants should stay tuned for future updates.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Withdrawal stops new grant/contract rules
If you are a contractor, subcontractor, grant recipient, or subrecipient funded by Department of State foreign assistance, you will not be required to follow the two proposed nondiscrimination contract or grant terms for now. The Department of State withdrew the two notices of proposed rulemaking effective January 8, 2025.
Faith-based hiring and waiver issues delayed
The Department withdrew the proposed rules after commenters raised concerns that faith-based organizations could be barred from hiring people of a particular religion and questioned how waivers would be handled. Because the rules were withdrawn as of January 8, 2025, those proposed changes and any new waiver criteria will not take effect now while the Department studies these issues further.
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