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

2 CFR 200.441: Fines, penalties, damages and other settlements

2 CFR 200.441 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: BudgetBudget justification

What 2 CFR 200.441 requires

1. Allowable costs

What you must do

Costs resulting from violations of, alleged violations of, or failure to comply with Federal, State, local, tribal, or foreign laws and regulations — fines, penalties, damages, and other settlements — are unallowable charges to the award, with two exceptions: costs incurred as a result of compliance with specific provisions of the Federal award, or costs incurred with the prior written approval of the Federal agency (this section is on the § 200.407 prior-approval list).

When it applies

Budget, budget justification, indirect cost pool, or post-award ledger contains fines, penalties, late fees, regulatory sanctions, damages, judgments, or settlement payments.

BudgetBudget justification
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Sections 2 CFR 200.441 refers to

Sections that refer to 2 CFR 200.441

Regulation text of 2 CFR 200.441

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§ 200.441 Fines, penalties, damages and other settlements.

Costs resulting from recipient or subrecipient violations of, alleged violations of, or failure to comply with, Federal, State, local, tribal, or foreign laws and regulations are unallowable, except when incurred as a result of compliance with specific provisions of the Federal award, or with the prior written approval of the Federal agency. See § 200.435.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.441

What does 2 CFR 200.441 require?

Costs resulting from violations of, alleged violations of, or failure to comply with Federal, State, local, tribal, or foreign laws and regulations — fines, penalties, damages, and other settlements — are unallowable charges to the award, with two exceptions: costs incurred as a result of compliance with specific provisions of the Federal award, or costs incurred with the prior written approval of the Federal agency (this section is on the § 200.407 prior-approval list).

When does 2 CFR 200.441 apply?

Budget, budget justification, indirect cost pool, or post-award ledger contains fines, penalties, late fees, regulatory sanctions, damages, judgments, or settlement payments.

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