I can imagine that a very risk averse lawyer would have pointed out the costs and uncertainties of litigation in cases like this. But if I were in their shoes and I really cared about the money, I would have pressed that lawyer to show examples where the clawback clause had been invoked since Jan 20. I'm not sure it's happened, which seems relevant to estimating the actual risk.
Interestingly, they may get more in donations than they would have from this grant, so maybe that needs to be including in the risk estimate as well...
> But if I were in their shoes and I really cared about the money, I would have pressed that lawyer to show examples where the clawback clause had been invoked since Jan 20.
And the lawyer would be able to present hundreds of cases covering billions of dollars of federal grants, cancelled since Trump issued EO 14151 setting in black and white the Administration's broad crusade against funding anything with contact with DEI and declaring the DEI prohibition a policy for all federal grants and contracts, under different grant programs, many of which were originally awarded before Trump came back to office and which would not have had DEI terms in the original grant language. They'd also be able to point out that some of the cancellations had been litigated to the Supreme Court and allowed, other clawbacks had been struck down by lower courts and were still in appeals.
But if the concern is about the provision allowing NSF to claw back funds that have been spent by the organization then the question remains: has that happened? Right now if you search for terms related to NSF clawbacks, most of the top results refer to the PSF's statement or forum discussions about it (like this one). I can't find any instances of a federal clawback related to DEI. If that had happened I would assume that the response from the awardee would have been noisy.
Interestingly, they may get more in donations than they would have from this grant, so maybe that needs to be including in the risk estimate as well...