Evaluation of Federal Contracts and Grants

On Monday, February 10, 2024, the Department of Government Efficiency terminated 89 U.S. Department of Education Contracts totaling nearly $900 million. These cancellations are part of the Administration’s efforts to scale back the U.S. Department of Education. Further cuts to federal spending and contracts related to education may be likely, given President Trump’s consistent messaging around reducing the scale of the U.S. Department of Education.

NEXT STEPS

If your school district has a federal contract or grant, it may be wise to review the contract or grant terms to understand the circumstances under which the federal government can terminate it. While it may not be possible to avoid the cancellation of a federal contract or grant, taking inventory of your contracts and grants, along with their cancellation terms (especially the timing provision) will give your school district a better sense of which contracts and grants you can rely on, and which may be more vulnerable to termination.

CONCLUSION & RECOMMENDATIONS

We at Lyons Gaddis would be happy to assist with the review of your federal contracts or grants or address any other questions you have related to this issue. If specific concerns about these updates arise at your schools. We have additionally collected a number of resources regarding these topics and are happy to share upon request. Contact our School Law attorneys, Adele Reester, Catherine Tallerico, and Robyn Smith for assistance.