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.
The requirement that grantees not violate existing laws is common in Federal grants. Taking umbrage with the DEI coloration on this entirely reasonable and standard requirement is absurd. There could be a long laundry list of such clauses that all have equally zero weight ("don't promote illegal drug trafficking", "don't promote illegal insider trading", ...).
If it has zero weight, why would the grant agreement specifically highlight it? I would guess it's much easier to enforce a particular interpretation of the law via a grant agreement than having to argue it in court.