DUE TO REDUCTION OR TERMINATION OF CDBG FUNDING Sample Clauses

This clause allows for the modification or termination of an agreement if there is a reduction or complete termination of Community Development Block Grant (CDBG) funding. In practice, it means that if the funding source is decreased or withdrawn by the granting authority, the parties to the contract may adjust the scope of work, reduce payments, or end the contract altogether. The core function of this clause is to protect the parties from being obligated to perform or pay for services when the expected federal funding is no longer available, thereby allocating risk associated with external funding changes.