My grant was terminated: what do I do in the first 30 days?
A termination notice starts clocks, and ending the grant does not end the paperwork. Under the federal rules the closeout duties still apply after termination. This page lists what to do in the first 30 days, in order, with the sections of 2 CFR Part 200 behind each step.
The first 30 days
- Save the notice and read it twice. Section 200.341(a) says the funder must give written notice of termination, which should include the reasons, the effective date and the portion of the award being terminated, if partial. If you only had a call or an email without those, ask for the written notice and say you need the effective date. Save the original file, the date you received it and who sent it.
- Find the stated basis. Section 200.340(a) lists four ways an award can end: the funder terminates for failure to comply with the terms, both sides agree on conditions, you send written notice with your reasons and the effective date, or the funder terminates under the award's own terms, including, to the extent authorized by law, if the award no longer effectuates program goals or agency priorities. Section 200.340(b) says the termination provisions must be clearly and unambiguously specified in the award terms. Match the notice to the clause in your award and write down which one the funder relied on.
- Write down every date. List the effective date, the date you were notified, and 30 calendar days from notification. Section 200.340(c)(1) says that when a termination is for material failure to comply, the funder does not report it in SAM.gov until you have exhausted your chances to object or have not, within 30 calendar days after notification, told the agency you intend to appeal. Also note any appeal or objection window in your award terms or the agency's procedures, which this page cannot know.
- Decide whether to object, and do it in writing. Section 200.342 says the agency must keep written procedures for objections, hearings and appeals, and must give you an opportunity to object and provide information challenging the action when it starts a remedy such as termination. Ask the agency or pass-through entity for its written procedure, follow it exactly and keep proof of sending. If the amount or the stakes are large, talk to a lawyer before you send anything.
- Stop making new commitments and list the open ones. Section 200.343 says costs from obligations incurred during a suspension or after termination are not allowable unless the agency expressly authorizes them, with an exception for obligations properly incurred before the effective date and not in anticipation of termination, if the costs would have been allowable anyway. List every open contract, lease, purchase order and staff commitment with its date, so you can show what was committed before the effective date. Ask the funder in writing about any cost you cannot avoid.
- Calendar the closeout duties that still apply. Section 200.340(d) says both sides remain responsible for 200.344 and 200.345 after termination. Under 200.344 as read, a recipient submits all reports and liquidates obligations within 120 calendar days after the period of performance ends (90 days for a subrecipient, or an earlier agreed date). Ask the funder to state in writing the date the period of performance ended and the report due dates, and put them in your calendar the same day.
- Prepare the refund, property and records items. Section 200.344(e) says to promptly refund unobligated funds the funder paid that you are not authorized to keep. Section 200.344(g) says property bought with federal funds is still accounted for under the property rules. Section 200.345 says closeout does not end record retention, audit requirements or the funder's right to disallow costs on a later review. Do not discard anything.
This page describes 2 CFR Part 200 as read on 2026-11-09 and applies to federal awards and subawards. Foundation, state and local grants follow their own agreements. It is a working method, not legal advice. If your termination is contested or involves a finding of non-compliance, consult a lawyer.
What the notice must say when it is for non-compliance
When the termination is for the recipient's material failure to comply, 200.341(b) says the notice must state that the decision will be reported in SAM.gov, that the information stays available there for five years from the termination date and is then archived, that agencies considering a new award in that period must weigh it when the federal share is expected to exceed the simplified acquisition threshold, and that you may comment on the information in SAM.gov, which agencies should consider. If your notice is for non-compliance and says none of this, ask the agency about it in writing.
A worked example (made-up award)
A nonprofit gets a notice dated 4 November saying its award ends effective 15 November, citing the award's clause on agency priorities. On 5 November it saves the notice and emails the program officer asking for the period-of-performance end date and report due dates in writing. It builds a list of commitments: two staff salaries through 15 November, one equipment order placed in September, and a venue deposit paid in October for a December event. The deposit and the order pre-date the notice, so it documents when each was signed and asks the program officer in writing whether those costs will be allowed. It stops all new orders. It asks the agency for its written procedure for objections and requests a review within the time that procedure allows. It calendars the closeout dates the funder confirms. Nothing in this sequence needs a lawyer except the objection, and that is where the nonprofit decides whether to bring one in.
Common mistakes
- Waiting for clarity before acting. The dates run from the notice, not from when you finish reading it.
- Spending down the balance. After the effective date, new obligations are generally not allowable under 200.343 unless the funder authorizes them.
- Ignoring closeout because the grant is over. Section 200.340(d) keeps 200.344 and 200.345 in force.
- Calling the funder and not writing it down. Follow every call with an email that restates what was said.
- Telling staff or other funders more than you know. Say what the notice says. Do not guess at the basis.
What to tell your board, staff and other funders
Not in the regulation, but the same day matters: send the board chair the notice and your list of dates, tell affected staff what the notice says and what you do not yet know, and check your other agreements for clauses that trigger on a loss of funding or a termination. Keep a single timeline document and update it with every call and email. It will be the first thing a lawyer or auditor asks for, and it ties in with the closeout checklist you will need anyway. For the 120-day count, see how to count the liquidation period, and for what to do with a remaining balance, see unspent grant funds.
The faster path, and what it does not do
GrantClose cannot contest a termination or tell you whether it was justified. After a termination it is a place to keep the dates: create one deliverable for each closeout report with its due date and one owner, attach the termination notice and the funder's written replies as evidence, and mark remaining deliverables that no longer apply as waived, which is one of the five statuses. The closeout ZIP then carries the notice, the replies and the final reports with a checksum per file. A closed award stays readable and exportable on every plan, Free included.
- It does not give legal advice, file an objection or appeal, or contact the funder for you.
- It does not work out which costs remain allowable after termination.
- It holds only what you upload, up to 15 MB per file. Do not upload health records, Social Security numbers, payment card data or client case files. The terms prohibit them.
GrantClose keeps evidence with each deadline and exports a closeout ZIP when the award ends. GrantClose never submits anything to a funder, writes your reports or gives legal, audit or compliance advice. Extracted dates are suggestions you confirm. Free for 1 active award. Create a free account
Questions
Can a federal agency terminate my grant?
As read on 2026-11-09, 2 CFR 200.340(a) lists four ways: for failure to comply with the terms, by agreement, by the recipient with written notice, and under the award's own terms, including to the extent authorized by law if the award no longer effectuates program goals or agency priorities. The termination provisions must be clearly specified in the award terms.
What must a termination notice include?
Section 200.341(a) says written notice should include the reasons, the effective date and the portion terminated, if partial. If the termination is for material failure to comply, 200.341(b) lists extra statements about SAM.gov that the notice must contain.
Can I object to a termination?
Section 200.342 says the agency must keep written procedures for objections, hearings and appeals and give you an opportunity to object and provide information challenging the action. Ask the agency for its procedure and follow its deadlines.
Do I still have to submit final reports after termination?
Yes. Section 200.340(d) says both sides remain responsible for the closeout requirements in 200.344 and 200.345. Ask the funder to confirm in writing the date the period of performance ended and the report due dates.
Can I charge costs after the termination date?
Under 200.343, costs from obligations incurred after termination are not allowable unless the agency expressly authorizes them, except obligations properly incurred before the effective date and not in anticipation of it that would otherwise be allowable. Ask in writing.
Sources read
- 2 CFR 200.340, termination, read on 2026-11-09.
- 2 CFR 200.341, notification of termination requirement, read on 2026-11-09.
- 2 CFR 200.342, opportunities to object, hearings, and appeals, read on 2026-11-09.
- 2 CFR 200.343, effects of suspension and termination, read on 2026-11-09.
- 2 CFR 200.344, closeout, read on 2026-11-09.
- 2 CFR 200.345, post-closeout adjustments and continuing responsibilities, read on 2026-11-09.