Department Grant Discontinuation and Termination Processes

The Department has been reviewing grants that reflect the prior Administration’s priorities and policy preferences and conflict with those of the current Administration, in that the programs: violate the letter or purpose of Federal civil rights law; conflict with the Department’s policy of prioritizing merit, fairness, and excellence in education; undermine the well-being of the students these programs are intended to help; or constitute an inappropriate use of federal funds. 

As part of this review, some grants have been terminated. Those organizations with terminated grants receive a termination letter that describes an opportunity, consistent with 2 CFR § 200.342, in which they could submit information and documentation appealing the termination within 30 calendar days of receipt of the termination letter. 

Department staff will follow the process set out below to review these appeals:

Step 1: Receive appeal from terminated grantee following procedures outlined in the termination letter. 

Step 2: First level reviewer examines all appeal materials received and applicable grant materials.

Step 3: First level reviewer completes individual factual analysis of appealing grantee and provides analysis of decision consistent with the terms of the termination letter. 

Step 4: First level reviewer provides initial recommendation to senior leadership in the program office. 

Step 5: Senior leadership in the program office makes final appeal decision regarding each individual appeal. 

Step 6: Program office sends final letter and completes any applicable actions in the Department's grant system. 

Step 7: Grantee receives notification of decision through individualized letter explaining the reasons the appeal is accepted or denied.

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Grant continuation requires “a determination from the Secretary that continuation of the project is in the best interest of the Federal Government.” The Department has undertaken a review of all funding and has found grants that reflect the prior Administration’s priorities and policy preferences and conflict with those of the current Administration, in that the programs: violate the letter or purpose of Federal civil rights law; conflict with the Department’s policy of prioritizing merit, fairness, and excellence in education; undermine the well-being of the students these programs are intended to help; or constitute an inappropriate use of federal funds.

Grantees may request reconsideration of the decision and to do so, a grantee must submit information and documentation supporting that position, in writing, within the number of days specified in the non-continuation grant award notice. 
 

Department staff will follow the process set out below to review these appeals:

Step 1: Grantee submits electronically a timely request for reconsideration to named point of contact in the non-continuation letter.

Step 2: Upon receipt of a request, the point of contact acknowledges receipt of the reconsideration request and transfers request to relevant staff to log the reconsideration request.

Step 3: Reviewing Officials review the reconsideration request, including documentation provided by the grantee in the request. Program reconsideration staff add the evidence supporting the initial discontinuation decision, summarize the reconsideration request and letters of support (if applicable). Reviewing officials send forward information the Recommending Official for review.

Step 4: Recommending Official reviews the Reviewing Officials’ summary and makes a recommendation approving or denying the reconsideration requests, then sends to the Deciding Official for review and final decision.

Step 5: The Deciding Official makes a final determination for all reconsideration requests.

Step 6: The Department sends the grantee a final letter with an individualized reconsideration determination with an explanation for the decision and completes any applicable actions in the Department's grant system.

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Your current budget period is listed in your most current Grant Award Notification (GAN) notifying you that the grant will not be continued. Box 6 of that GAN document should reflect this budget period. You may obligate funds until the end of the budget period.

As stated in the letter, federal funding may not extend past the end date of the performance period without approval. All funds must be obligated and activities complete by this date, except those limited and necessary activities required to close out the grant.

No. Consistent with the procedures for the end of a federal grant, all services and activities supported by the grant must be complete by this date, except those limited and necessary activities required to close out the grant. Grantees may choose to continue salaries, stipends, or tuition past the performance period using their own funding.

Under 2 CFR § 200.344, grantees have 120 days to liquidate (pay invoices and expenses for) obligations incurred prior to the end of the performance period.

Grantees are required to follow the post-closeout procedures described in 2 CFR § 200.345, including records retention requirements described in §§ 200.334 through 200.337. The ending of the grant does not affect the ability of the Department to disallow costs and recover funds based on a later audit or review.

Grant funds should only support contracts through the end of the current performance period listed in your GAN. Grantees may choose to continue contracts past the performance period using their own funding. Please note that all contracts over $10,000 must include termination for convenience provisions as part of the required contract provisions in Appendix II to Part 200, Title 2.

Grantees may choose to continue job offers past the performance period using their own funding.

You may proceed with your activities designed to meet the goals and objectives of your project, aligned with your approved project budget, until the end of your updated performance period. This may include use of carryover funds from previous project years. Please refer to your approved budget and consult with your Federal Project Officer to discuss any proposed changes or updates.

You may propose project updates and changes to allow you to meet your project’s goals and objectives in the time you have remaining in the performance period. Please consult with your Federal Project Officer to discuss your proposed changes for approval.

Your Federal Project Officer will provide specific instructions on closing out your grant. You will be required to submit a final report.

Please refer to your non-continuation letter to review the list of information that should be included in your reconsideration request.

The Department will conduct reviews among program staff and leadership to reach a final decision that will be communicated to the grantee. For more information about the process the Department will use for reviewing requests for reconsideration, please refer to the Grant Discontinuation Process detailed above.

Decisions will be communicated to grantees individually as soon as possible.