Grant cancellations spread across government — what can grantees do?

Understanding Gov’t Grant Termination: Tom Temin Interviews Attorney Dan Ramish

Last updated Apr 24, 2025

TL/DR –

The Department of Government Efficiency has cancelled $33 billion in grants and more are expected. Federal grants generally exceed $1 trillion annually, compared to government contracts which amount to about $700 billion. The process for terminating grants differs from that of contracts; under the uniform guidance issued for federal grants, there wasn’t originally a unilateral funding agency right to terminate a grant, but several revisions over time have altered agencies’ termination rights.

Government Efficiency Department Cancels $33 Billion in Grants

The Department of Government Efficiency reports cancelling $33 billion in grants, with more expected to follow. Questions arise about the government’s authority to revoke grants and possibilities for grantees to contest. Federal Drive with Tom Temin sought clarification from procurement attorney Dan Ramish at Haynes Boone.

Tom Temin: News focuses mostly on contract terminations, but grant terminations have also been prevalent under the Trump administration. Can you give us a background on federal grant-making?

Dan Ramish: Interestingly, the federal government spends more on grants and assistance than on government contracts. Grant expenditure typically surpasses $1 trillion, depending on the year.

Tom Temin: And what about terminations?

Dan Ramish: The Department of Government Efficiency’s website shows over 9,500 grant terminations totalling $33 billion, projecting an increase in the future.

Tom Temin: How does the termination process work in the grant world?

Dan Ramish: The granting process differs from contract awarding, but termination rights have evolved over time. Initial uniform guidance did not provide unilateral rights to grant termination, but several revisions have expanded these rights, depending on grant award dates and whether the assistance agreement has been amended.

Tom Temin: Upon termination, what really gets terminated?

Dan Ramish: Termination typically refers to unobligated funding. The original termination right added in August 2020 was a result of the Trump administration’s attempt to cancel some grants prematurely, leading to court reversals. The Biden administration further revised the termination provisions last year, limiting them unless specified in the award.

Tom Temin: So, the government has broad discretion on termination?

Dan Ramish: Yes, depending on the date and modifications of the grant. This issue is currently being debated in court.

Tom Temin: Is there any information on the nature of the cancelled grants?

Dan Ramish: The Department of Government Efficiency provides a breakdown of savings by agencies and individual terminations. Prominent areas include international development, education, and the environment.

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