US Foreign Aid Now Bans 'Discriminatory Equity Ideology' Abroad
Published Date: 1/27/2026
Rule
Summary
Starting February 26, 2026, the U.S. will require groups getting foreign aid to reject certain ideas about equity and gender that the government calls discriminatory. This affects foreign and U.S. NGOs, international groups, and foreign governments receiving money. The new rules make sure aid supports U.S. policies and could change how funds are given out worldwide.
Analyzed Economic Effects
8 provisions identified: 0 benefits, 7 costs, 1 mixed.
Foreign NGOs Must Reject Certain Equity Ideas
If you are a foreign nongovernmental organization or international organization that receives U.S. Department of State foreign assistance, you must agree that during the award period you will not, outside the United States, promote discriminatory equity ideology, engage in unlawful DEI-related discrimination, or provide financial support to another foreign NGO or IO that does so. This award term is required in grants and cooperative agreements effective February 26, 2026.
U.S. NGOs Face Program Limits and Separation Rules
U.S. non-governmental organizations that receive Department of State foreign assistance must not, outside the United States, engage in unlawful DEI-related discrimination, and they must not promote discriminatory equity ideology within the scope of any program, project, or activity funded by foreign assistance. U.S. NGOs must also ensure physical and financial separation of their foreign assistance-funded programs from prohibited activities and must flow down the award terms to subrecipients; First Amendment protections are acknowledged for uses of non-Federal funds outside the scope of funded programs.
Estimated Compliance Costs and Burden Hours
The Department estimates 2,500 recipients and grantees will be impacted. It estimates one-time familiarization costs of $16,035,000, annual training and monitoring costs totaling $114,052,700, an average of 261 hours per response, and total estimated burden hours of 652,500; the rule is effective February 26, 2026 and the related OMB control number is listed as 1405-XXXX.
Foreign Governments May Need Segregated Accounts
A foreign government or parastatal that receives Department of State foreign assistance may be required to agree not to use award funds to promote discriminatory equity ideology or to engage in unlawful DEI-related discrimination. If applied, the foreign government or parastatal may be required to place award funds in a segregated account for the period of the award to ensure the funds are not used for those activities.
Rule Covers Non-Military Foreign Assistance
The award term applies to non-military foreign assistance administered by the Department under title III and specified appropriations headings and includes 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. The rule does not cover military assistance and the CDEIFA award term will be included in all new grants and cooperative agreements and in existing agreements when amended to add new funding.
Award Terms Must Flow Down to Subrecipients
Foreign and U.S. NGOs, international organizations, foreign governments, and parastatals that receive foreign assistance must flow down applicable award terms to subrecipients. The rule also covers grants made under contracts; the Administration is developing a corresponding clause for contracts to include later.
What Counts as Prohibited 'Discriminatory Equity Ideology'
The rule defines 'discriminatory equity ideology' with eight explicit examples (e.g., claims that members of one race or sex are inherently superior; assigning guilt to individuals for past actions of others; preferring adverse treatment to achieve diversity), and says 'promote' includes using or teaching materials that advance the ideology. The rule also defines 'unlawful DEI-related discrimination' as discrimination on race, color, religion, or national origin that violates or would violate U.S. federal antidiscrimination law and lists examples such as race-based training, race-based segregation, and 'diverse slate' hiring policies.
Secretary Can Waive Award Term for Security Reasons
The Department may grant a waiver of this award term or its elements if, in the Secretary of State's judgment, a waiver is necessary for national security or foreign policy purposes. The Department will issue guidance on the waiver process.
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Starting February 26, 2026, the U.S. will require all foreign aid recipients—like NGOs and governments—to follow new rules that stop the promotion of gender ideology overseas. This means grants and agreements will include terms to make sure aid supports U.S. policies against gender ideology, certain equity programs, and abortion as family planning. These changes affect how billions in foreign assistance are given and ensure aid aligns with the current administration’s values.
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Starting February 26, 2026, the U.S. will require all foreign aid groups to follow new rules that stop funding abortion-related activities overseas. This affects foreign and U.S. NGOs, international groups, and governments receiving U.S. grants or aid. The change supports the President’s goal to protect life and will be added to new and renewed funding agreements, making sure U.S. money doesn’t support abortion as family planning.