Uniform Guidance limits use of the federal de minimis rate to recipients and subrecipients that do not have a current Federal negotiated indirect cost rate (including provisional rate). For more information, see eCFR 200.414(f).
The de minimis rate is not applicable for proposals or awards with a sponsor-imposed direct cost cap (e.g., limit on training grants or NIH limit for foreign organizations).
October 2024 Change to De Minimis Rate
Effective October 1, 2024, the de minimis indirect cost rate increased to MTDC 15%.
Proposals Submitted On or After October 1, 2024
Proposed subrecipient entities that do not have a federally negotiated indirect cost rate may use the revised federal de minimis rate of up to MTDC 15%.
Awards Issued On or After October 1, 2024
The de minimis rate may be used for any subaward issued under an award executed on or after October 1, 2024.
- If the award includes subawards to entities that used the previous MTDC 10% de minimis, contact your CA.
Awards Issued Prior to October 2024
- If the Federal agency amends the award to apply the 2024 Revisions, then the 2024 Revisions must apply to subawards issued under that award. If applicable, subrecipients may choose to use the MTDC up to 15% de minimis for expenses beginning October 1, 2024:
- Subrecipient must confirm the ability to meet its obligations of the subaward within the original funding, regardless of budget revision
- DLCI obtains revised budget and justification from subrecipient
- DLCI must submit a B2P change order to request a subaward modification
- If the Federal agency has not applied the 2024 Revisions to the award, the passthrough entity must not apply the 2024 Revisions to a subaward issued under that Federal award—even if the subaward itself is executed on or after October 1, 2024
Updated October 10, 2024