A drive from the Trump administration to eliminate programs that promote diversity, equity and inclusion — or DEI — has left Utah nonprofits in confusion, as they try to file applications that don’t violate new federal rules.
For one Utah nonprofit, the damage has been done. It saw a $1.2 million federal grant suddenly rescinded after President Donald Trump signed an executive order on his first day back in office.
The Center for Economic Opportunity & Belonging, which works with communities to address opportunity gaps in income, education, health and housing, had already signed contracts for the grant, awarded in 2024 by the U.S. Department of Energy, said Bailey Rivera-Wymes, senior project manager and director of marketing for the nonprofit.
“We were going to be working on local economic development and new educational and training opportunities in Magna,” Rivera-Wymes said. “This was meant to be completely reinvested in the community and to develop the people that live in the community, and that was slashed, unfortunately.”
Rivera-Wymes said the grant was suspended because it was tied to a Community Benefits Plan — a Biden-era requirement that ensured federal subsidies created jobs and improved living conditions in underserved areas. But the executive order Trump signed, titled “Ending Radical and Wasteful Government DEI Programs and Preferencing,” directed federal agencies to eliminate all diversity, equity and inclusion-related initiatives, including grants and contracts.
Utah nonprofits have expressed concern over federal grant certification requirements that ask organizations to affirm they will not use funds for “illegal” DEI programs or to promote “gender ideology,” said Jill Bennett, CEO of the Utah Nonprofits Association.
The requirement comes after Trump signed a flurry of executive orders during his first days back in office, some of which scale back DEI programs and impose new conditions on federal grant recipients.
For Bennett, the changes unfairly target the nonprofit sector, which often operates with limited financial support despite playing a vital role in delivering social services.
“It’s not a sector without guardrails, it’s a sector rooted in stewardship, accountability, transparency — all with the sole purpose of making our communities better,” Bennett said. “That’s why it’s heartbreaking when we see nonprofits become tools for people’s political gain.”
[Related: Utah nonprofits serving immigrants see funding cuts, more demand in Trump’s second term]
One piece of a larger project
The nonprofit’s grant, Rivera-Wymes said, was tied to a broader project in Magna to develop a new manufacturing facility for producing a low-emission alternative to traditional cement.
According to a Department of Energy news release, the facility will manufacture a high-performing Supplementary Cementitious Material that emits up to 70% less carbon than Portland cement.
The DOE awarded $52.6 million to Terra CO2 Technology, a Colorado-based company specializing in low-carbon building materials, to lead the project. It is expected to create 61 new jobs offering wages and benefits above the national 75th percentile, and provide training for up to 144 people from underrepresented communities, the release states.
Rivera-Wymes said the nonprofit’s portion of the grant funds were going toward education and work training for the new facility.
The notice instructed the nonprofit to cease all grant-funded activities, though it stated that expenses incurred before the date of the letter would be reimbursed, she said.
“Our communities won’t be able to be supported by our government in this way,” Rivera-Wymes said. “And [there is] the potential loss of the training and opportunities for the people that live in our area.”
Despite the setback, she said the organization is exploring ways to remain involved in the project without the federal funds.
(Bailey Rivera-Wymes) Bailey Rivera-Wymes, senior project manager and director of marketing, and Nori Gomez, Utah Citizenship Initiative project specialist at the Center for Economic Opportunity & Belonging, at a young professionals networking event hosted by the nonprofit.
Executive orders spark uncertainty
Bennett said nonprofits began contacting her organization in July about the certification requirements, seeking guidance on their meaning.
In one example shared with The Salt Lake Tribune, a letter instructs the grant recipient to certify compliance with “all applicable federal anti-discrimination laws,” including Title VI of the Civil Rights Act of 1964. It also states that grant funds may not be used to promote “elective abortions” or “gender ideology,” citing Trump’s January executive orders that direct the federal government to recognize only two genders — male and female — and enforce the Hyde Amendment, which prohibits the use of federal funds for elective abortions.
Jeff Tenenbaum, a nonprofit attorney based in Washington, D.C., said nonprofits receiving federal grant funds should consult with legal counsel to ensure they are in full compliance with all applicable executive orders.
“That’s really the only way to know,” Tenenbaum explained. “For instance, workplace anti-discrimination and anti-harassment training. Would most people consider that to be a DEI practice? Sure. Is it illegal under federal law? No. Whereas, for instance, giving preference to minority candidates in the hiring process, that is illegal under federal law.”
There is ongoing debate over whether the Trump administration has the legal authority to impose such requirements, Tenenbaum said. However, he added, “in effect, it’s a moot point, because if you want to get your federal funds, you have to make the certification, and you have to do it under penalty of perjury under the False Claims Act. So, regardless of whether or not the administration has the right to do this, they’re doing it anyway. And if you want your federal funds, you have to comply.”
Tenenbaum said his firm learned of the certification requirements about a month after Trump signed his executive orders scaling back DEI, as a wide range of federal agencies began enforcing them to remain in compliance.
“This is the kind of thing where I suspect that the certifications are going to be slightly different from one federal agency to another, and that also they may evolve over time,” he said.
While federal grants often require recipients to certify legal compliance, Tenenbaum said the new certification is unprecedented in its specificity.
“It’s not uncommon as part of a federal grant application or agreement that you’ll have to sign something that says, ‘I certify that we’re not violating any federal laws,’” Tenenbaum said. “That’s common, but something this specific and targeted on the DEI front? I’ve never seen anything like this.”
Bennett said she is concerned that nonprofits could be forced to choose between losing critical funding or signing a certification that conflicts with their values.
Federal grant applications are already arduous, Bennett said, with nonprofits required to meet some of the strictest oversight standards of any sector. They must submit detailed applications, maintain meticulous financial records and file exhaustive reports documenting exactly how the funds are used, she said.
Most organizations won’t turn down an awarded grant after going through the lengthy application process, she said.
However, Tenenbaum said it is a “serious certification,” as the person who signs it could potentially face legal penalties if found not in compliance. Most nonprofits will need an attorney to review their organization and determine if they are in compliance.
The Utah Nonprofits Association alerted its members about the certification requirements and asked them to complete a form detailing their experiences. (Disclosure: The Salt Lake Tribune is a member of UNA.)
The group is gathering information to help members assess their compliance and decide whether to sign, Bennett said.
Several executive orders are facing legal challenges, including “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which is contested partly because it prohibits federal grant and contract recipients from engaging in DEI initiatives, according to the National Council of Nonprofits and court records. The lawsuit remains pending.
“Then you’re going to be certifying that you’re going to follow something that is in this document, but may not even be legal later,” Bennett said, which causes confusion for recipients. “It’s introducing chaos into a sector that does their work quietly, effectively, efficiently and without fanfare.”