diff --git a/src/scheduler/src/core_events.c b/src/scheduler/src/core_events.c
index 69a18aae..7b0eeaa8 100644
--- a/src/scheduler/src/core_events.c
+++ b/src/scheduler/src/core_events.c
@@ -952,6 +952,27 @@ int xce_core_push_events(xce_sched_core_t* core, xce_core_event_t* events,
 
             job->state = updated->state;
 
+            /* Release resource allocation/accounting on a terminal
+             * transition -- mirrors XCE_CORE_EVENT_JOB_STATE_CHANGE's
+             * identical cleanup above. JOB_UPDATE is the only currently-live
+             * path a controller's job-finish notification actually reaches
+             * (HOOK_DETAIL_JOB_UPDATE via sched_job_update_fun(); JOB_STATE_
+             * CHANGE's own controller-side trigger, HOOK_DETAIL_JOB_EXIT/
+             * START/FAIL at HOOK_AFTER_EVENT, is never fired anywhere in the
+             * controller -- job.c only ever fires those at HOOK_BEFORE_EVENT,
+             * for WAL-append purposes), so without this a job finishing via
+             * JOB_UPDATE leaked its account/alloc objects for the rest of
+             * the process's life. */
+            if (!JOB_IS_RUN(updated->state)) {
+                if (job->accounts != NULL) {
+                    free_job_account(job->accounts);
+                    job->accounts = NULL;
+                }
+                if (job->allocs != NULL) {
+                    free_JobAlloc_ptr(&(job->allocs));
+                }
+            }
+
             if (updated->submit != NULL) {
                 if (updated->submit->queue != NULL) {
                     xce_sched_queue_t* q
diff --git a/src/scheduler/testsuite/test_core_events.c b/src/scheduler/testsuite/test_core_events.c
index 4d7c715c..a97cb53f 100644
--- a/src/scheduler/testsuite/test_core_events.c
+++ b/src/scheduler/testsuite/test_core_events.c
@@ -53,6 +53,7 @@
 
 #include "kvmgr.h"
 #include "scheduler.h"
+#include "xcealloc.h"
 #include "xstring.h"
 
 /* Pull in the real xce_sched_core_init()/xce_core_push_events() under test
@@ -465,6 +466,71 @@ static void test_jobs_push_fires_on_job_push_once_per_job(void)
     TEST_ASSERT_NOT_NULL(sched_get_job(&core, 3));
 }
 
+/* JOB_UPDATE (core_events.c's live wire-shape mirror of JOB_STATE_CHANGE --
+ * the notify-driven single-job path a real controller's HOOK_DETAIL_JOB_UPDATE
+ * fire reaches, per handler.c's own XCE_SCHED_OP_UPDATE_JOB_FIELDS comment)
+ * must release a job's resource allocation/accounting the same way
+ * JOB_STATE_CHANGE's case already does (this file's own
+ * test_push_events_fires_each_hook_once_per_event_with_picker_idle only
+ * proves the hook fires -- it never inspects accounts/allocs afterward).
+ * Without this, a job that transitions to a terminal state via JOB_UPDATE
+ * (the only currently-live path -- JOB_STATE_CHANGE's own controller-side
+ * trigger, HOOK_DETAIL_JOB_EXIT/START/FAIL at HOOK_AFTER_EVENT, is never
+ * actually fired anywhere in the controller) leaks its account/alloc
+ * objects for the rest of the process's life. */
+static void test_job_update_to_terminal_state_frees_accounts_and_allocs(void)
+{
+    xce_sched_core_t  core;
+    xce_core_event_t  event;
+    xce_job_t*        job1;
+    xce_job_t         updated;
+    xce_alloc_t*      a_slots;
+    xce_host_alloc_t* h0;
+    xce_host_alloc_t* hallocs[1];
+    xce_job_alloc_t*  jalloc;
+    xce_sched_job_t*  job;
+    int               rc;
+
+    fixture_init(&core, &g_full_plugin);
+
+    job1 = make_job(7, JOB_STAT_RUN, "normal", "alice", "proj1");
+
+    memset(&event, 0, sizeof(event));
+    event.type              = XCE_CORE_EVENT_JOBS_PUSH;
+    event.u.jobs_push.njobs = 1;
+    event.u.jobs_push.jobs  = &job1;
+
+    rc = xce_core_push_events(&core, &event, 1);
+    TEST_ASSERT_EQUAL_INT(0, rc);
+
+    job = sched_get_job(&core, 7);
+    TEST_ASSERT_NOT_NULL(job);
+
+    a_slots       = make_alloc((char*)"slots", NULL, 0, 4.0f, 0);
+    h0            = make_host_alloc((char*)"hostA", 1, make_allocs(1, a_slots));
+    hallocs[0]    = h0;
+    jalloc        = make_job_alloc(7, 1, make_host_allocs(1, hallocs[0]));
+    job->allocs   = jalloc;
+    job->accounts = make_job_account(job->allocs);
+    TEST_ASSERT_NOT_NULL(job->accounts);
+
+    memset(&updated, 0, sizeof(updated));
+    updated.jobid = 7;
+    updated.state = JOB_STAT_DONE;
+
+    memset(&event, 0, sizeof(event));
+    event.type                        = XCE_CORE_EVENT_JOB_UPDATE;
+    event.u.job_update.jobid          = 7;
+    event.u.job_update.job            = &updated;
+
+    rc = xce_core_push_events(&core, &event, 1);
+    TEST_ASSERT_EQUAL_INT(0, rc);
+
+    TEST_ASSERT_EQUAL_UINT32(JOB_STAT_DONE, job->state);
+    TEST_ASSERT_NULL(job->accounts);
+    TEST_ASSERT_NULL(job->allocs);
+}
+
 /* WORKERS_PUSH/RESOURCES_PUSH/RESVALS_FULL/RESVALS_DELTA are state-update
  * only -- Req 1 AC 2: "Hooks not defined on the picker interface (worker
  * updates, resource updates, resval updates) are not forwarded to the
@@ -973,6 +1039,7 @@ int main(void)
     UNITY_BEGIN();
     RUN_TEST(test_push_events_fires_each_hook_once_per_event_with_picker_idle);
     RUN_TEST(test_jobs_push_fires_on_job_push_once_per_job);
+    RUN_TEST(test_job_update_to_terminal_state_frees_accounts_and_allocs);
     RUN_TEST(test_non_picker_events_mutate_state_but_never_call_hooks);
     RUN_TEST(test_workers_push_twice_updates_existing_worker_in_place);
     RUN_TEST(test_workers_push_with_null_val_does_not_clobber_existing_resval);