Sharp Electronics Corp. v. McHugh: The Not-So-Bright-Line

Congress has put OMB’s proposed overhaul of federal grant regulations on hold through December 11, 2026. Against the backdrop of an extraordinary public response to the proposed overhaul—496,606 comments received—our latest client alert explains how the proposed overhaul has been delayed by the 2027 Continuing Appropriations Act and what may come next.

The District Court for the District of Massachusetts recently held that 2 C.F.R. § 200.340(a)(4) does not authorize grant terminations based on changes to program goals or agency priorities that an agency identifies after issuing a grant. This decision is significant because the administration has relied on 2 C.F.R. § 200.340(a)(4) to terminate billions of dollars in grants based on post-award changes to program goals and priorities. Josh Schnell and Sam Van Kopp represented 13 members of Congress who filed an amicus brief in support of the plaintiffs in the case, who are twenty states, three governors, and the District of Columbia. Click this post to read the decision and our amicus brief.

Daniel Strouse and Josh Schnell recently obtained a favorable appellate decision in a multi-year, multi-protest saga involving USPS's global contract for bomb-detection services. Of note, the Federal Circuit's decision includes important holdings on timely interventions and the requirements for filing redacted protest pleadings. Click the link to learn more.