What Recipients Need to Know If a Federal Grant Is Terminated by the Government
Holland & Knight – The Trump Administration issued an executive order on Feb. 26, 2025, implementing the U.S. Department of Government Efficiency’s (DOGE) “cost efficiency initiative” that (among other things) directs federal government agency heads to review all existing “covered contracts and grants” by March 26, 2025, and terminate or modify these agreements where “appropriate and consistent with the law.” For grantees, these reviews may result in unexpected terminations or alterations in funding, necessitating a thorough understanding of the legal rights and obligations involved in either challenging grant terminations or engaging in grant termination settlements and closeout procedures.
