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Using Available Funds For Other Purposes No Excuse For Breach

Client Alert | 1 min read | 03.22.05

The Supreme Court in Cherokee Nation of Okla. v. Leavitt (Mar. 1, 2005) sustained breach actions by several Indian tribes against the Department of Interior, which had tried to avoid its contractual obligations by saying that it didn't have enough appropriated funds to meet all of its various responsibilities. In so doing, the Court reaffirmed the long-established rule for procurement contracts that, if Congress has not earmarked funds specifically for a program and "if the amount of an unrestricted appropriation is sufficient to fund the contract, the contractor is entitled to payment even if the agency has allocated the funds to another purpose or assumes other obligations that exhaust the funds," even if the contract has language such as "subject to the availability of funds."

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Client Alert | 2 min read | 02.19.25

District Court Grants Temporary Reprieve to USAID Implementing Partners

On February 13, 2025, Judge Amir Ali of the U.S. District Court for the District of Columbia issued a temporary restraining order in two combined cases—one filed by U.S. Agency for International Development (USAID) contractors, a second by USAID grant recipients—challenging Executive Order 14169, “Reevaluating and Realigning United States Foreign Aid,” which paused almost all foreign assistance funding. ...