Uniform Guidance

The Uniform Guidance is a set of federal regulations that govern the administration of federally funded grants and cooperative agreements.  

The Office of Management and Budget (OMB) most recently updated the Uniform Guidance, 2 CFR 200 with an effective date of October 1, 2024. The revisions aimed to streamline and enhance federal grant management and promote greater efficiency and accountability in the administration of federal funds. Key changes include updated cost principles, changes to prior approval requests, and enhanced audit requirements.  Some federal agencies posted accompanying agency regulation, guidance, policies, and/or terms and conditions updates to reflect these changes.   

Highlighted Changes 

Equipment and Supply Threshold Changes 

• 2 CFR 200.313: Equipment threshold increased from equaling or exceeding $5,000 to $10,000. 
• 2 CFR 200.314: Supplies classified as an acquisition for less than $10,000. 

Facilities and Administrative Costs/Indirect Costs Definition 

• OMB has removed the use of the term “Facilities and Administrative (F&A) cost” from the definition of Indirect Cost; however, Uniform Guidance and many federal agencies continue to use this term. 

Modified Total Direct Cost (MTDC) Change 

• The definition of Modified Total Direct Cost (MTDC) is updated to allow indirect cost recovery for each subaward up to $50,000. 
• This change is not applicable to recipient institutions until the definition is reflected in the institution’s Negotiated Indirect Cost Rate Agreement (NICRA). 

De Minimis Rate for Indirect Costs for Subrecipients 

• 2 CFR 200.414 allows for the application of a 15% indirect cost rate for entities that do not have a Negotiated Indirect Cost Rate Agreement. 

The full text of the Uniform Guidance revision is available in the Federal Register.