The Python Software Foundation (PSF) has withdrawn its proposal for a $1.5 million grant from the National Science Foundation (NSF), citing terms that would have forced it to abandon all diversity, equity and inclusion (DEI) efforts.
Quick Summary – TLDR:
- The PSF’s proposed project aimed to build automated proactive review tools to screen packages uploaded to the Python Package Index (PyPI) and guard against supply chain attacks.
- The NSF grant terms required the PSF to affirm it would not operate any programs that advance or promote DEI.
- Because DEI is central to the PSF’s mission, the board voted unanimously to reject the proposal.
- The decision reflects a growing tension between federal funding conditions and open source community values.
What Happened?
In January 2025 the Python Software Foundation submitted a proposal to the National Science Foundation’s program for Safety, Security and Privacy of Open Source Ecosystems. The aim was to address security vulnerabilities in the Python language and its package index, PyPI. After months of evaluation, the NSF agreed to fund the project with $1.5 million. However, the PSF discovered a clause in the final agreement requiring it to affirm that it would not operate any programs that “advance or promote diversity, equity and inclusion or discriminatory equity ideology in violation of Federal anti discrimination laws.” This condition would apply not just to the grant funded project but to all PSF operations during the funding period.
TLDR; The PSF has made the decision to put our community and our shared diversity, equity, and inclusion values ahead of seeking $1.5M in new revenue. Please read and share. https://t.co/laZQCbHWJU
— Python Software Foundation (@ThePSF) October 27, 2025
🧵 https://t.co/laZQCbHWJU
Even more concerning was a stipulation allowing the NSF to claw back disbursed funds if the PSF was later found to have violated the DEI clause. This created a significant financial risk for the relatively small nonprofit. The PSF has an annual budget of about $5 million and only 14 staff members. Accepting the grant could have endangered the entire organization.
Why It Matters?
The funding was meant to help the PSF develop tools for automated malware detection in PyPI packages. These tools would allow for proactive reviews of all uploads rather than relying on reactive manual reviews.
The project was also designed so its output could be shared with other ecosystems such as npm and Crates.io, potentially boosting security across the open source world. Losing this opportunity means delaying or possibly canceling these important security improvements.
The NSF’s requirement to avoid any DEI promotion directly conflicts with the PSF’s stated mission: “to promote, protect, and advance the Python programming language and to support and facilitate the growth of a diverse and international community of Python programmers.”
The PSF decided that accepting the grant under those conditions would betray its community and core values. Other organizations, like The Carpentries, have made similar decisions to reject NSF funding for the same reason, indicating a broader industry wide concern about the implications of such clauses.
By walking away from the largest grant it has ever been offered, the PSF has sent a clear message to the tech community. It signaled that financial support cannot come at the cost of ethics and inclusivity. This move could inspire other nonprofits and open source organizations to re evaluate their funding sources and stand firm in their values.
What Comes Next?
The PSF is now asking its community for increased support through donations, sponsorships, and memberships to help cover the gap left by the rejected grant. Meanwhile, pressure may grow on the NSF to reconsider how its funding restrictions impact community led technology development. The broader conversation around DEI, funding conditions, and organizational independence is likely to continue, especially as the open source ecosystem becomes more central to global digital infrastructure.
SQ Magazine’s Takeaway
I think the PSF made a brave and necessary choice. Walking away from $1.5 million is no small decision, especially for a small nonprofit. But sometimes the right thing to do costs more than money. The PSF stood up for its mission and the people it serves. In open source, your community is everything. If a funding deal demands you leave part of your community behind, then it is not worth it. I admire that they chose values over convenience, especially when those values make tech more open and welcoming for everyone.
