Trump Administration Cancels Federal Contract, Triggering Layoffs In CT

President Donald Trump's administration has canceled a federal contract that will lead to the termination of seven workers in Connecticut.

The contract was with Family Endeavors, Inc., which since 2021 has provided "home study services and post release services to unaccompanied children..." Those services were under a contract with the U.S. Department of Health and Human Services, which is set to expire Dec. 31. The job losses are outlined in documents filed with the state.

The news comes as a federal inspector general's report released Thursday accuses former President Joe Biden's administration of bypassing federal rules when awarding a $529-million contract to San Antonio-based Endeavors, according to a FOX News report.

In 2021, Endeavors was awarded the contract for a new emergency intake site in Texas with 2,000 beds. However, the federal Administration of Children and Families failed to follow requirements for competitive bidding due to "insufficient planning," FOX News reported.

The inspector general also found that the contract price was more than double the agency's estimated cost of $244 million. Due to the allegations, the contract with Endeavors was canceled.

Read the full report at FOX News.

The layoffs in Connecticut include three case managers, a case aide supervisor, a placement coordinator, a regional supervisor and an intensive case manager.

A small number of employees "may receive offers to transfer to other Endeavors positions or locations, but no transfer offers have been extended at this time," according to the documents. Endeavors employees also do not have bumping rights, meaning they cannot displace more junior employees out of their positions.