Key Steps for Traversing Federal Grant Terminations
Government Contracts attorneys Amy Fuentes and David Black co-authored a Law360 article sharing guidance for federal grant recipients facing unexpected terminations and weighing their options to respond. The Trump Administration terminated billions of dollars in grants and cooperative agreements across multiple federal agencies after the U.S. Department of Government Efficiency (DOGE) began implementing a cost efficiency initiative, with affected industries ranging from higher education to healthcare. Ms. Fuentes and Mr. Black outline the steps for recipients to take upon receiving a termination notice, such as stopping work, notifying potential partners and thoroughly documenting all costs associated with the termination. They then recommend recipients consider whether negotiations with an agency are possible, as well as consider political and policy advocacy, given that engagement with Congress could lead to a reversal of the termination. Finally, the article goes in depth into how to challenge a grant termination, with analysis of recent court decisions regarding grant terminations and the use of the Administrative Procedure Act to seek injunctive relief, in addition to laying out the procedures for formally closing out the award.