On August 25, 2026, the U.S. Court of Appeals for the Ninth Circuit issued a consequential opinion on the enforceability of “materiality conditions” in government contracts. The Ninth Circuit found that the U.S. Departments of Transportation (DOT) and Housing and Urban Development (HUD) likely stepped beyond their statutory authority by requiring grant recipients to certify, after the point of award, that compliance with certain laws was “material” to the agencies’ payment decisions, for purposes of False Claims Act (FCA) liability. While limited to the laws at issue, the opinion is significant in recognizing that the Government cannot lower its burden of proving FCA materiality through post hoc certifications imposed on government contractors.


