tl;dr: nsf requested that python software foundation affirms that they “do not, and will not during the term of this financial assistance award, operate any programs that advance or promote DEI, or discriminatory equity ideology in violation of Federal anti-discrimination laws”.
the psf has withdrawn the proposal instead.
Honestly I’m not even sure it was necessarily a difficult decision. A painful one, perhaps, but I can see that, for the right kind of people, it would also be an obvious and easy one.