Update: They were removed from our reviewer assignments completely. I'm so sorry to all those graduate students. Anonymous to protect the identity of the NIH employee I spoke to...I am on study section next month to discuss F awards. We were just instructed to put the F31-Diversity applications on the bottom of our priority list for review because there is a chance we may not be able to review them. My heart is breaking for the grad students and their mentors that put so much work into these just for them to be disqualified and thrown out.
Just in case you thought that removing DEI criteria would mean that everyone is competing equally: NIH is removing grad students from underrepresented backgrounds from the applicant pool altogether. Their applications will not be considered. Other students, not from these backgrounds, will be.