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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."

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Client Alert | 3 min read | 01.07.26

CMMC for AI? Defense Policy Law Imposes AI Security Framework and Requirements on Contractors

In an important first, the yearly defense policy law, the National Defense Authorization Act (NDAA) for Fiscal Year 2026, directs the Department of Defense (DoD)  to develop and implement a framework addressing the cybersecurity and physical security of artificial intelligence and machine learning technologies (AI/ML) acquired by the Pentagon....