45 CFR § 1303.33 - Termination of delegate agencies.

---
identifier: "/us/cfr/t45/s1303.33"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 1303.33 - Termination of delegate agencies."
title_number: 45
title_name: "Public Welfare"
section_number: "1303.33"
section_name: "Termination of delegate agencies."
chapter_name: "ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "THE ADMINISTRATION FOR CHILDREN AND FAMILIES, HEAD START PROGRAM"
part_number: "1303"
part_name: "FINANCIAL AND ADMINISTRATIVE REQUIREMENTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 9801"
regulatory_source: "81 FR 61412, Sept. 6, 2016, unless otherwise noted."
cfr_part: "1303"
---


# 1303.33 Termination of delegate agencies.

(a) If a grant recipient shows cause why termination is appropriate or demonstrates cost effectiveness, the grant recipient may terminate a delegate agency's contract.

(b) The grant recipient's  decision to terminate must not be arbitrary or capricious.

(c) The grant recipient must establish a process for defunding a delegate agency, including an appeal of a defunding decision and must ensure the process is fair and timely.

(d) The grant recipient must notify the responsible HHS official about the appeal and its decision.