We analyze the deformation theory of equivariant vector bundles. In particular, we provide an effective criterion for verifying whether all infinitesimal deformations preserve the equivariant structure. As an application, using rigidity of the Frobenius homomorphism of general linear groups, we prove that projectivizations of Frobenius pullbacks of tautological vector bundles on Grassmanians are arithmetically rigid, that is, do not lift over rings where p not equal 0. This gives the same conclusion for Totaro's examples of Fano varieties violating Kodaira vanishing. We also provide an alternative purely geometric proof of non-liftability mod p(2) and to characteristic zero of the Frobenius homomorphism of a reductive group of non-exceptional type. In the appendix, written jointly with Piotr Achinger, we provide examples of non-liftable Calabi-Yau varieties in every characteristic p >= 5.