Hennepin County, Minnesota, is challenging an $86 million federal award to the consulting firm Guidehouse, alleging that the Trump administration moved money meant for teen pregnancy prevention programs to the contractor, NPR reported on Oct. 17.
The county, a former grantee of the Teen Pregnancy Prevention Program, filed a bid protest in the U.S. Court of Federal Claims. It argues the award was “arbitrary, capricious, an abuse of discretion contrary to law and in excess of its statutory authority.”
“Our focus is going to continue to be to use every legal tool we can to ensure the program’s administered as Congress intended,” said Skye Perryman, chief executive of Democracy Forward, which represents the county.
What the Guidehouse contract covers
The Administration for Children and Families awarded the task order on Sept. 30, the last day of the federal fiscal year. Federal spending records show $69.9 million obligated so far, with the current work period running through September 2028.
Its listed scope is “adolescent social and youth engagement services,” with national training and technical assistance. Congress set aside $101 million for the prevention program this fiscal year, court records show.
NPR noted that the Administration for Children and Families does not usually run the program. Guidehouse, which is owned by the private equity firm Bain Capital, calls itself a “global AI-led professional services firm,” and its website makes no mention of teen pregnancy.
Cody Inman, one of the agency’s top officials, joined the administration from Guidehouse, and at least two other HHS officials also worked there, NPR reported. The report did not say whether any of them played a role in the award.
HHS declined to comment, citing the litigation. Guidehouse did not respond to NPR before publication.
Grants were cut in June
The protest follows a wider fight over the program. In June, HHS ended grants for nearly all organizations in its 2023 to 2028 funding group, saying some curricula “normalize adolescent sexual activity and are not age appropriate.” It then asked for new proposals built around “sexual risk avoidance” education.
Hennepin County, King County in Washington state and other plaintiffs sued in federal court in Washington. On Aug. 19, U.S. District Judge Christopher R. Cooper found the new policy was “likely arbitrary and capricious” and blocked HHS from carrying it out.
Cooper declined to restore the canceled grants at that stage, saying it was unclear whether his court or the Court of Federal Claims had authority over those claims.
Kristin Fairholm, whose group EyesOpenIowa lost its grant earlier this year, told NPR that “the need is so great in so many areas that sex ed is not being prioritized as much.”
The Court of Federal Claims is scheduled to hold its first hearing on the county’s protest on Tuesday, Oct. 20.