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

2 CFR 200.421: Advertising and public relations

2 CFR 200.421 sets 4 requirements 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: Budget: other direct costsBudget justificationProject narrativeBudget: personnelBudget: suppliesBudget: travel

What 2 CFR 200.421 requires

1. Allowable costs

What you must do

Advertising costs are allowable only when solely for: (1) recruitment of personnel required for performance of the Federal award; (2) procurement of goods and services for the award; (3) disposal of scrap or surplus materials acquired under the award (unless the entity is reimbursed for disposal at a predetermined amount); or (4) program outreach and other specific purposes necessary to meet Federal award requirements.

When it applies

Budget or justification includes advertising, media buys, or paid promotion

Budget: other direct costsBudget justificationProject narrative
2. Allowable costs

What you must do

Public relations costs are allowable only when: (1) specifically required by the Federal award; (2) for communicating with the public and press about specific activities or accomplishments resulting from performance of the award; or (3) for general liaison with news media and government PR officers limited to keeping the public informed on matters of public concern (e.g., notices of funding opportunities or financial matters).

When it applies

Budget includes public relations, community relations, or communications staff/contractor costs

Budget: other direct costsBudget: personnelBudget justification
3. Allowable costs

What you must do

Costs of promotional items and memorabilia, and costs of advertising or public relations designed solely to promote the recipient or subrecipient, are unallowable.

When it applies

Budget or narrative mentions branded merchandise, swag, giveaways, souvenirs, gifts, or general organizational promotion

Budget: other direct costsBudget: suppliesBudget justification
4. Allowable costs

What you must do

Costs of meetings, conventions, conferences, or other events related to the entity's other (non-award) activities are unallowable as advertising/PR — including displays, demonstrations, and exhibits; meeting rooms, hospitality suites, and other special facilities used with shows and special events; and salaries and wages of employees setting up displays, making demonstrations, or providing briefings.

When it applies

Budget includes trade shows, exhibits, hospitality suites, or event costs not tied to the Federal award's purposes

Budget: other direct costsBudget: travelBudget: personnel
Grantable compliance database

Ask how 2 CFR 200.421 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.

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Sections 2 CFR 200.421 refers to

Sections that refer to 2 CFR 200.421

Regulation text of 2 CFR 200.421

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(a) The term advertising costs means the costs of advertising media and corollary administrative costs. Advertising media includes, but is not limited to, magazines, newspapers, radio and television, direct mail, exhibits, and electronic or computer transmittals.

(b) The only allowable advertising costs are those which are solely for:

(1) The recruitment of personnel required by the recipient or subrecipient for the performance of a Federal award (See also § 200.463);

(2) The procurement of goods and services for the performance of a Federal award;

(3) The disposal of scrap or surplus materials acquired in the performance of a Federal award except when the recipient or subrecipient is reimbursed for disposal costs at a predetermined amount; or

(4) Program outreach (for example, recruiting project participants) and other specific purposes necessary to meet the Federal award requirements.

(c) The term “public relations” includes community relations and means those activities dedicated to maintaining the recipient's or subrecipient's image or maintaining or promoting understanding and favorable relations with the community or public at large or any segment of the public.

(d) The only allowable public relations costs are:

(1) Costs specifically required by the Federal award;

(2) Costs of communicating with the public and press about specific activities or accomplishments which result from the performance of the Federal award (these costs are considered necessary as part of the outreach effort for the Federal award); or

(3) Costs of conducting general liaison with news media and government public relations officers, to the extent that such activities are limited to communication and liaison necessary to keep the public informed on matters of public concern, such as notices of funding opportunities or financial matters.

(e) Unallowable advertising and public relations costs include the following:

(1) All advertising and public relations costs other than as specified in paragraphs (b) and (d) of this section;

(2) Costs of meetings, conventions, conferences, or other events related to other activities of the entity (see also § 200.432), including:

(i) Costs of displays, demonstrations, and exhibits;

(ii) Costs of meeting rooms, hospitality suites, and other special facilities used in conjunction with shows and other special events; and

(iii) Salaries and wages of employees engaged in setting up and displaying exhibits, making demonstrations, and providing briefings;

(3) Costs of promotional items and memorabilia;

(4) Costs of advertising and public relations designed solely to promote the recipient or subrecipient.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.421

What does 2 CFR 200.421 require?

Advertising costs are allowable only when solely for: (1) recruitment of personnel required for performance of the Federal award; (2) procurement of goods and services for the award; (3) disposal of scrap or surplus materials acquired under the award (unless the entity is reimbursed for disposal at a predetermined amount); or (4) program outreach and other specific purposes necessary to meet Federal award requirements. Public relations costs are allowable only when: (1) specifically required by the Federal award; (2) for communicating with the public and press about specific activities or accomplishments resulting from performance of the award; or (3) for general liaison with news media and government PR officers limited to keeping the public informed on matters of public concern (e.g., notices of funding opportunities or financial matters). Costs of promotional items and memorabilia, and costs of advertising or public relations designed solely to promote the recipient or subrecipient, are unallowable. Costs of meetings, conventions, conferences, or other events related to the entity's other (non-award) activities are unallowable as advertising/PR — including displays, demonstrations, and exhibits; meeting rooms, hospitality suites, and other special facilities used with shows and special events; and salaries and wages of employees setting up displays, making demonstrations, or providing briefings.

When does 2 CFR 200.421 apply?

Budget or justification includes advertising, media buys, or paid promotion. Budget includes public relations, community relations, or communications staff/contractor costs. Budget or narrative mentions branded merchandise, swag, giveaways, souvenirs, gifts, or general organizational promotion. Budget includes trade shows, exhibits, hospitality suites, or event costs not tied to the Federal award's purposes.

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