diff --git a/pkg/resources/management.cattle.io/v3/project/validator.go b/pkg/resources/management.cattle.io/v3/project/validator.go
index a9c6b919b..a7b9d855a 100644
--- a/pkg/resources/management.cattle.io/v3/project/validator.go
+++ b/pkg/resources/management.cattle.io/v3/project/validator.go
@@ -165,7 +165,7 @@ func (a *admitter) admitCommonCreateUpdate(oldProject, newProject *v3.Project) (
 	if fieldErr != nil {
 		return admission.ResponseBadRequest(fieldErr.Error()), nil
 	}
-	fieldErr, err = a.checkQuotaValues(&nsQuota.Limit, &projectQuota.Limit, oldProject)
+	fieldErr, err = a.checkQuotaValues(&nsQuota.Limit, &projectQuota.Limit, newProject)
 	if err != nil {
 		return nil, fmt.Errorf("error checking quota values: %w", err)
 	}
@@ -258,20 +258,24 @@ func checkQuotaFields(projectQuota *v3.ProjectResourceQuota, nsQuota *v3.Namespa
 	return nil, nil
 }
 
-func (a *admitter) checkQuotaValues(nsQuota, projectQuota *v3.ResourceQuotaLimit, oldProject *v3.Project) (*field.Error, error) {
+// checkQuotaValues ensures that the new quotas are consistent with the new
+// used-limit.  checking against the old used-limit is contra-indicated as it
+// may contain bogus data, causing failure to validate. making it impossible to
+// replace a bogus used-limit with good values.
+func (a *admitter) checkQuotaValues(nsQuota, projectQuota *v3.ResourceQuotaLimit, newProject *v3.Project) (*field.Error, error) {
 	// check quota on new project
 	fieldErr, err := namespaceQuotaFits(nsQuota, projectQuota)
 	if err != nil || fieldErr != nil {
 		return fieldErr, err
 	}
 
-	// if there is no old project or no quota on the old project, no further validation needed
-	if oldProject == nil || oldProject.Spec.ResourceQuota == nil {
+	// if there is no new project or no quota on the new project, no further validation needed
+	if newProject == nil || newProject.Spec.ResourceQuota == nil {
 		return nil, nil
 	}
 
 	// check quota relative to used quota
-	return usedQuotaFits(&oldProject.Spec.ResourceQuota.UsedLimit, projectQuota)
+	return usedQuotaFits(&newProject.Spec.ResourceQuota.UsedLimit, projectQuota)
 }
 
 func namespaceQuotaFits(namespaceQuota, projectQuota *v3.ResourceQuotaLimit) (*field.Error, error) {
diff --git a/pkg/resources/management.cattle.io/v3/project/validator_test.go b/pkg/resources/management.cattle.io/v3/project/validator_test.go
index 7d942e42e..4c44b7437 100644
--- a/pkg/resources/management.cattle.io/v3/project/validator_test.go
+++ b/pkg/resources/management.cattle.io/v3/project/validator_test.go
@@ -990,7 +990,7 @@ func TestProjectValidation(t *testing.T) {
 			wantAllowed: false,
 		},
 		{
-			name:      "update with project quota less than used quota",
+			name:      "update with project quota less than used quota, quota changed",
 			operation: admissionv1.Update,
 			oldProject: &v3.Project{
 				ObjectMeta: metav1.ObjectMeta{
@@ -1038,6 +1038,154 @@ func TestProjectValidation(t *testing.T) {
 			},
 			wantAllowed: false,
 		},
+		{
+			name:      "update with project quota less than used quota, used quota changed",
+			operation: admissionv1.Update,
+			oldProject: &v3.Project{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:      "test",
+					Namespace: "testcluster",
+				},
+				Spec: v3.ProjectSpec{
+					ClusterName: "testcluster",
+					ResourceQuota: &v3.ProjectResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+						UsedLimit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+					},
+					NamespaceDefaultResourceQuota: &v3.NamespaceResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "50",
+						},
+					},
+				},
+			},
+			newProject: &v3.Project{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:      "test",
+					Namespace: "testcluster",
+				},
+				Spec: v3.ProjectSpec{
+					ClusterName: "testcluster",
+					ResourceQuota: &v3.ProjectResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+						UsedLimit: v3.ResourceQuotaLimit{
+							ConfigMaps: "1000",
+						},
+					},
+					NamespaceDefaultResourceQuota: &v3.NamespaceResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "50",
+						},
+					},
+				},
+			},
+			wantAllowed: false,
+		},
+		{
+			name:      "update project with bogus used quota, to good used quota",
+			operation: admissionv1.Update,
+			oldProject: &v3.Project{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:      "test",
+					Namespace: "testcluster",
+				},
+				Spec: v3.ProjectSpec{
+					ClusterName: "testcluster",
+					ResourceQuota: &v3.ProjectResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+						UsedLimit: v3.ResourceQuotaLimit{
+							ConfigMaps: "xxxxxxxxxx",
+						},
+					},
+					NamespaceDefaultResourceQuota: &v3.NamespaceResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "50",
+						},
+					},
+				},
+			},
+			newProject: &v3.Project{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:      "test",
+					Namespace: "testcluster",
+				},
+				Spec: v3.ProjectSpec{
+					ClusterName: "testcluster",
+					ResourceQuota: &v3.ProjectResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+						UsedLimit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+					},
+					NamespaceDefaultResourceQuota: &v3.NamespaceResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "50",
+						},
+					},
+				},
+			},
+			wantAllowed: true,
+		},
+		{
+			name:      "update project with good used quota, to bogus used quota",
+			operation: admissionv1.Update,
+			oldProject: &v3.Project{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:      "test",
+					Namespace: "testcluster",
+				},
+				Spec: v3.ProjectSpec{
+					ClusterName: "testcluster",
+					ResourceQuota: &v3.ProjectResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+						UsedLimit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+					},
+					NamespaceDefaultResourceQuota: &v3.NamespaceResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "50",
+						},
+					},
+				},
+			},
+			newProject: &v3.Project{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:      "test",
+					Namespace: "testcluster",
+				},
+				Spec: v3.ProjectSpec{
+					ClusterName: "testcluster",
+					ResourceQuota: &v3.ProjectResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "100",
+						},
+						UsedLimit: v3.ResourceQuotaLimit{
+							ConfigMaps: "xxxxxxxxxx",
+						},
+					},
+					NamespaceDefaultResourceQuota: &v3.NamespaceResourceQuota{
+						Limit: v3.ResourceQuotaLimit{
+							ConfigMaps: "50",
+						},
+					},
+				},
+			},
+			wantErr:     true,
+			wantAllowed: false,
+		},
 		{
 			name:      "update with fields changed in project quota less than used quota",
 			operation: admissionv1.Update,