This isn't good for the PSF, but if these "poison pill" terms are a pattern that applies to all NSF and (presumably) other government research funding, the entire state of modern scientific research is at risk. Regardless of how you, as an individual, might feel about "DEI," imposing onerous political terms on scientific grants harms everyone in the long term.
Now it can spend the money on important stuff like packaging. uv is amazing, but also a symptom of the wrong people stewarding that money.