2 CFR 200.423 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.
Costs of alcoholic beverages are unallowable in any amount, whether charged as a direct or indirect cost.
Always; especially where budgets include catering, event, meal, or hospitality costs
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.
The cost of alcoholic beverages is unallowable.
Source: eCFR · checked Sep 17, 2026
Costs of alcoholic beverages are unallowable in any amount, whether charged as a direct or indirect cost.
Always; especially where budgets include catering, event, meal, or hospitality costs.
Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.