Funds appropriated Clause Samples

The 'Funds appropriated' clause defines the conditions under which a contract or agreement is contingent upon the availability of government-allocated funds. In practice, this clause typically states that the obligations of one or both parties are subject to the receipt of sufficient appropriations from a legislative body, such as Congress or a state legislature. For example, if funding is not approved or is reduced, the contract may be terminated or modified without penalty. This clause serves to protect government entities from financial liability in the event that necessary funds are not appropriated, ensuring that contractual commitments do not exceed available public resources.