1. Home
  2. |Insights
  3. |Using Available Funds For Other Purposes No Excuse For Breach

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."

Insights

Client Alert | 14 min read | 12.22.25

European Commission Proposes Biotech Act to Boost Health Biotechnology in the EU

On December 16, 2025, the European Commission published its proposal for a regulation establishing a European Biotech Act to strengthen the EU's biotechnology and biomanufacturing sectors with a primary focus on health....