Navigating the USAID Shutdown Process: A Guide to Grant and Contract Termination for Convenience

When USAID considers a shutdown, it often invokes a “Termination for Convenience” (T4C), halting ongoing grants and contracts that no longer align with its mission. This process allows the agency to responsibly close out programs while managing financial and legal obligations. The whitepaper explains how T4Cs differ for contracts and grants, highlighting key cost principles, required documentation, and the role of legal and financial experts in navigating the termination process. For contractors and grantees, understanding this framework is essential for maximizing recoverable costs and maintaining compliance.