> Is that even legal to add such an arbitrary and opinionated reason to a government grant?
On the surface, it is simply a requirement that the grantee comply with existing non-discrimination laws coupled with a completely fictional example of a potential violation (“discriminatory equity ideology”) provided as an example that happens to have an initialism collision with a real thing. This is legal and (but for the propaganda example) routine.
But... the text viewed in isolation is not the issue.
On the surface, it is simply a requirement that the grantee comply with existing non-discrimination laws coupled with a completely fictional example of a potential violation (“discriminatory equity ideology”) provided as an example that happens to have an initialism collision with a real thing. This is legal and (but for the propaganda example) routine.
But... the text viewed in isolation is not the issue.