C.F.R. » Title 2 » CHAPTER II—OFFICE OF MANAGEMENT AND BUDGET GUIDANCE › PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS › Subpart D—Post Federal Award Requirements

2 C.F.R. § 200.340

Termination

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(a) The Federal award may be terminated in part or its entirety as follows:

(1) By the Federal agency or pass-through entity if the recipient or subrecipient fails to comply with the terms and conditions of the Federal award;

(2) By the Federal agency or pass-through entity with the consent of the recipient or subrecipient, in which case the two parties must agree upon the termination conditions. These conditions include the effective date and, in the case of partial termination, the portion to be terminated;

(3) By the recipient or subrecipient upon sending the Federal agency or pass-through entity a written notification of the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the Federal agency or pass-through entity determines that the remaining portion of the Federal award will not accomplish the purposes for which the Federal award was made, the Federal agency or pass-through entity may terminate the Federal award in its entirety; or

(4) By the Federal agency or pass-through entity pursuant to the terms and conditions of the Federal award, including, to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.

(b) The Federal agency or pass-through entity must clearly and unambiguously specify all termination provisions in the terms and conditions of the Federal award.

(c) When the Federal agency terminates the Federal award prior to the end of the period of performance due to the recipient's material failure to comply with the terms and conditions of the Federal award, the Federal agency must report the termination in SAM.gov. A Federal agency must use the Contractor Performance Assessment Reporting System (CPARS) to enter information in SAM.gov.

(1) The information required under paragraph (c) of this section is not to be reported in SAM.gov until the recipient has either:

(i) Exhausted its opportunities to object or challenge the decision (see § 200.342); or

(ii) Has not, within 30 calendar days after being notified of the termination, informed the Federal agency that it intends to appeal the decision to terminate.

(2) If a Federal agency, after entering information about a termination in SAM.gov, subsequently:

(i) Learns that any of that information is erroneous, the Federal agency must correct the information in the system within three business days;

(ii) Obtains an update to that information that could be helpful to other Federal agencies, the Federal agency is strongly encouraged to amend the information in the system to incorporate the update in a timely way.

(3) The Federal agency must not post any information that will be made publicly available in the non-public segment of SAM.gov that is covered by a disclosure exemption under the Freedom of Information Act (FOIA). When the recipient asserts within seven calendar days to the Federal agency which posted the information that a disclosure exemption under FOIA covers some of the information made publicly available, the Federal agency that posted the information must remove the posting within seven calendar days of receiving the assertion. Before reposting the releasable information, the Federal agency must resolve the issue in accordance with the agency's FOIA procedures.

(d) When the Federal award is terminated in part or its entirety, the Federal agency or pass-through entity and recipient or subrecipient remain responsible for compliance with the requirements in §§ 200.344 and 200.345.

Notes of Decisions
Cited in 22 cases (22 in the last 5 years), 2023–2026 · leading case: Dep't of Educ. v. California, 604 U.S. 650 (2025).
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Dep't of Educ. v. California, 604 U.S. 650 (2025). “See 2 C.F.R. 200.340(a)(4); see also 34 C.F.R.”
Urban Sustainability Directors Network v. United States Dep't of Agric. (D.D.C. 2025). · cites it 14× “See 2 C.F.R. § 200.340 (a)(4). Pursuant to, among other authorities, 2 C.”
Louisiana Delta Serv. Corps v. Corp. for Nat'l & Cmty. Serv. (M.D. La. 2025). · cites it 10× “) Plaintiff argues that the only basis for terminating a grant because of agency priorities comes from the OMB Uniform Guidance, 2 C.F.R. § 200.340 , which states that a federal award may be terminated by the agency “‘if an award no longer effectuates the program goals or agency…”
Vera Inst. of Just. v. U.S. Dep't of Just. (D.D.C. 2025). · cites it 9× “See 2 C.F.R. § 200.340 . It identifies four such circumstances, three of which are not at issue here: (1) “the recipient or subrecipient fails to comply with the terms and conditions” of the award; (2) the parties consent to termination; or (3) the recipient voluntarily…”
Green & Healthy Homes Initiative, Inc. v. Env't Prot. Agency (D. Maryland 2025). · cites it 8× “” 2 C.F.R. § 200.340 (a)(4). The EPA terms and conditions do too: “EPA may unilaterally terminate this award in whole or in part .”
Climate United Fund v. Citibank, N.A. (D.C. Cir. 2025). · cites it 5× “By terminating for “agency priorities,” EPA allegedly relied on a basis for termination not set forth in the grant agreements, in violation of 2 C.F.R. § 200.340 (a)(4). Furthermore, EPA allegedly failed to provide written notice of termination as required by 2 C.”
Power Forward Communities, Inc. v. Citibank, N.A. (D.D.C. 2025). · cites it 4× “Grant award recipients also agree to comply with EPA’s general terms and conditions, “in addition to the assurances and certifications made as part of the award” and which provide for situations where EPA may unliterally terminate an award, which shall be “consistent with 2…”
Power Forward Communities, Inc. v. Citibank, N.A. (D.D.C. 2025). · cites it 4× “Grant award recipients also agree to comply with EPA’s general terms and conditions, “in addition to the assurances and certifications made as part of the award” and which provide for situations where EPA may unliterally terminate an award, which shall be “consistent with 2…”
Solutions In Hometown Connections v. Noem (D. Maryland 2025). · cites it 4× “As required by 2 C.F.R. § 200.340 (b), the purpose of this term and condition is to specify termination provisions applicable to the federal award in addition to those set forth in the regulations.”
Shapiro (M.D. Penn. 2025). · cites it 4× “On March 7, 2025, the deputy administrator of AMS, Jack Tuckwiller, sent a letter to PDA notifying the state agency that the LFPA25 Agreement would be terminated in 60 days “in accordance with 2 CFR § 200.340 (a)(4) and the terms and conditions of the award.”
Solutions In Hometown Connections v. Noem (D. Maryland 2025). · cites it 3× “As required by 2 C.F.R. § 200.340 (b), the purpose of this term and condition is to specify termination provisions applicable to the federal award in addition to those set forth in the regulations.”
Am. Academy of Pediatrics v. U.S. Dep't of Health & Human Servs. (D.D.C. 2026). · cites it 3× “Pursuant to the terms of the award and 2 C.F.R. § 200.340 (a)(4), the Health Resources and Services Administration (HRSA) may terminate a federal award ‘to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.”
Show all 22 citing cases →
— 2 C.F.R. § 200.340(a) — 1 case
Vera Inst. of Just. v. U.S. Dep't of Just. (D.D.C. 2025). “See 2 C.F.R. § 200.340 . It identifies four such circumstances, three of which are not at issue here: (1) “the recipient or subrecipient fails to comply with the terms and conditions” of the award; (2) the parties consent to termination; or (3) the recipient voluntarily…”
— 2 C.F.R. § 200.340(a)(1) — 1 case
Partners in Nutrition d/b/a Partners in Quality Care Appeal of MDE Decision Child & Adult Care Food Prog. December ... (Minn. Ct. App. 2023).
— 2 C.F.R. § 200.340(a)(2) — 1 case
Green & Healthy Homes Initiative, Inc. v. Env't Prot. Agency (D. Maryland 2025). “” 2 C.F.R. § 200.340 (a)(4). The EPA terms and conditions do too: “EPA may unilaterally terminate this award in whole or in part .”
— 2 C.F.R. § 200.340(a)(4) — 2 cases
Dep't of Educ. v. California, 604 U.S. 650 (2025). “See 2 C.F.R. 200.340(a)(4); see also 34 C.F.R.”
S. Educ. Found. v. United States Dep't of Educ. (D.D.C. 2025).
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