They do apply, also for NIH funded research. I work in healthcare research and all the investigators I know have had to go to great lengths to whitewash their grant proposals (you can’t use the word “gender” for example, you must say “difference” instead of “disparity”, etc etc…)

It’s absolutely bonkers. However most of the researchers I work with are operating under a “appease the NIH to obtain the grant, but the just do the research as it was originally intended” approach. It not like the federal government has the ability (or staffing - hah!) to ensure every single awardee is complying with these dystopian requirements.