Grants and Cooperative Agreements

Key Takeaways:

  • Ninth Circuit limited agency authority to impose grant conditions.
  • Court rejected executive agency attempts to define FCA materiality through certifications.
  • Decision found other policy-based grant conditions also exceeded executive agency authority, including compliance with federal anti-discrimination laws beyond federally funded programs. 

On August 25, 2026, the Ninth Circuit issued a 2-1 decision in County of King v. Turner, which involved a challenge to the Trump Administration’s imposition of new conditions on local government recipients of earlier-awarded federal grants earmarked for local homelessness and transportation projects.  

The decision will be of interest to federal contractors and grantees, particularly those encountering new requirements from federal agencies aimed at furthering current Administration policy goals.

Continue Reading County of King v. Turner Raises Questions About Executive Agency Authority to Impose False Claims Act and Other Certifications on Federal Funds Recipients

On May 29, 2026, the Office of Management and Budget (“OMB”), together with several other federal agencies, published a proposed rule that would fundamentally change many aspects of the regulations in 2 CFR Part 200 governing federal financial assistance awards, including grants, cooperative agreements, loans, and loan guarantees.  The comment period will be underway until July 13.

The 412 page proposed rule states that it is aimed at increasing transparency, accountability, and oversight in federal financial assistance.  It provides examples of “the types of wasteful spending” that it is meant to target, including recipients “potentially misus[ing] funds to provide services for illegal immigrants.”

While the proposed rule contains numerous changes, this post highlights some of the most notable.

Continue Reading Proposed Rule Would Fundamentally Impact Federal Grant and Financial Assistance Framework