[takluyver]

And if someone at the NSF decides to terminate the grant & 'recover all funds', does the dispute over the contract involve the same burden of proof and rights to appeal as a federal discrimation case?

Someone wrote it into the grant agreement. It's a fair bet that they think that has some effect beyond what the law already achieves.

[XCabbage]

The burden of proof is "on the balance of probabilities" in both cases as far as I know, and there's no limit in principle on how high a breach of contract case can be appealed.

Of course it has an effect, but that effect is giving the NSF the ability to sue over a grantee's alleged breaches of discrimination law, instead of that being limited to parties discriminated against and the EEOCs.