Assertion Supported AI assessment confidence: 95% certainty 4/5 debate potential 2/5

Gershenson: Federal grant cancellation clauses require reimbursement for completed work

Dimitri Gershenson · The missing capital for climate startups: more debt · Jul 29, 2026 · at 39:03

Dimitri Gershenson, CEO of climate lending firm Enduring Planet, explains why federal grant cancellation risks remain manageable for bridge lenders.

0:00 / 0:16exact quote · 16.0s

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“But the trick is that that clause At least as it's generally been written, requires the government to reimburse the grantee or the vendor, et cetera, for any work done to date until the cancellation that is within budget.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

The claim, plainly

Federal grant termination for convenience clauses generally require the government to reimburse grantees or vendors for any in-budget work completed prior to cancellation.

a quote alone can be ambiguous, so this restates it with the references and context of the conversation around it resolved. AI-written; the tape below the player is the source.

Assessment

Under both federal grant regulations and standard federal procurement contracting rules, the government is required to reimburse recipients and contractors for allowable, in-budget costs incurred prior to a termination for convenience. For federal grants and cooperative agreements, the Uniform Guidance (2 CFR § 200.343 and 2 CFR § 200.472) establishes that costs resulting from obligations properly incurred prior to termination remain allowable and reimbursable within the approved budget. For federal procurement contracts and vendors, standard Federal Acquisition Regulation (FAR) termination for convenience clauses (including FAR 52.249-2, FAR 52.249-6, and FAR 52.212-4(l)) mandate payment for allowable work performed prior to the effective date of termination up to the contract ceiling.

2 CFR § 200.343 establishes that obligations properly incurred prior to the effective date of termination remain allowable and reimbursable under federal grant awards.
2 CFR § 200.472 specifies that allowable costs upon termination include costs incurred up to the date of termination within the approved budget.
FAR Part 49 and standard termination clauses (FAR 52.249-2, FAR 52.249-6, and FAR 52.212-4) require the government to reimburse contractors for allowable costs incurred in the performance of work terminated prior to the cancellation date.

Checked against

[1] casrai.org [2] ncheng.com [3] capitaledgeconsulting.com [4] gtlaw.com [5] cornell.edu [6] uw.edu [7] uw.edu [8] ecfr.gov

federal grant termination for convenience reimbursement allowable costs uniform guidance 2 CFR 200 340 termination for convenience allowable costs incurred prior 2 CFR 200 termination costs 200 471 allowable reimbursable FAR 52 249 2 termination for convenience reimbursement work performed prior

assessed as of 2026-09-02

This assessment is an AI reading of a public statement, made against the cited references with the confidence shown. It can be wrong. The quote, the tape and the references are all on this page; if something is off, use report an error below. full disclaimer →

Mentioned

federal government

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