The U.S. Capitol
America's Credit Unions urged the General Services Administration to withdraw proposed changes to federal grant certification requirements, warning the revisions could create confusion and discourage participation in key assistance programs.
In a comment letter, the group raised concerns about updates to the System for Award Management (SAM), which would require applicants to certify compliance with broadly defined standards tied to "discriminatory practices" and diversity, equity, inclusion and accessibility programs.
James Akin, head of regulatory advocacy for America's Credit Unions, said the proposal lacks clear definitions, making it difficult for credit unions and community development financial institutions (CDFIs) to determine compliance obligations.
Without greater specificity, applicants may need to seek legal guidance or devote additional resources to interpret the rules, increasing costs and potentially discouraging participation in federal programs, the group said.
The organization also warned that the changes could have unintended consequences for underserved communities. Credit unions and CDFIs often rely on federal assistance to support lending, housing and financial education initiatives, and added compliance uncertainty could reduce access to those services.
According to the letter, some institutions may opt out of federal programs entirely rather than risk noncompliance, which could limit funding for small businesses and affordable housing efforts.
America's Credit Unions also noted the proposal could conflict with existing legal and regulatory frameworks, creating further complexity for institutions already subject to anti-discrimination requirements.
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