Subpart E: Cost principles 2024 Uniform Guidance · effective Oct 1, 2024

2 CFR 200.408: Limitation on allowance of costs

2 CFR 200.408 sets one requirement for organizations that receive federal grants and cooperative agreements. Applies when you build your application and budget, and to every cost you charge after award.

Shows up in your application: BudgetPersonnel

What 2 CFR 200.408 requires

1. Allowable costs

What you must do

Charge no cost to the Federal award that exceeds a maximum amount allowed by statute; only the statutorily allowable amount may be charged.

When it applies

The funding program's authorizing or appropriations statute imposes a cost cap (e.g., salary rate caps, statutory admin-cost or indirect-cost percentage limits)

BudgetPersonnel
Grantable compliance database

Ask how 2 CFR 200.408 applies to your application

Upload the funding notice and your draft budget or narrative, and ask. Grantable answers from its compliance database of federal, agency and state rules, with citations.

Sections that refer to 2 CFR 200.408

Regulation text of 2 CFR 200.408

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Statutory requirements may limit the allowability of costs. Any costs that exceed the maximum amount allowed by statute may not be charged to the Federal award. Only the amount allowable by statute may be charged to the Federal award.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.408

What does 2 CFR 200.408 require?

Charge no cost to the Federal award that exceeds a maximum amount allowed by statute; only the statutorily allowable amount may be charged.

When does 2 CFR 200.408 apply?

The funding program's authorizing or appropriations statute imposes a cost cap (e.g., salary rate caps, statutory admin-cost or indirect-cost percentage limits).

Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.