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

2 CFR 200.453: Materials and supplies costs, including costs of computing devices

2 CFR 200.453 sets 3 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: suppliesBudget justificationCost sharing

What 2 CFR 200.453 requires

1. Allowable costs

What you must do

Materials, supplies, and fabricated parts necessary for performance of the award are allowable; purchased materials and supplies must be charged at actual prices net of applicable credits; withdrawals from general stores/stockrooms must be charged at actual net cost under a recognized, consistently applied inventory-pricing method; incoming transportation charges are an allowable part of supply cost.

When it applies

Supplies/materials budget category is used.

Budget: suppliesBudget justification
2. Allowable costs

What you must do

Computing devices may be charged as direct costs when they are essential and allocable to the performance of the federal award, even if not solely dedicated to it.

When it applies

Laptops, tablets, or other computing devices budgeted under supplies.

Budget: suppliesBudget justification
3. Property and equipment

What you must do

Where federally-donated or furnished materials are used in performing the federal award, the materials must be used without charge.

When it applies

Application relies on government-furnished or federally donated materials.

Budget: suppliesCost sharing
Grantable compliance database

Ask how 2 CFR 200.453 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 that refer to 2 CFR 200.453

Regulation text of 2 CFR 200.453

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(a) Costs incurred for materials, supplies, and fabricated parts necessary for the performance of a Federal award are allowable.

(b) Purchased materials and supplies must be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms must be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation charges are an allowable part of materials and supplies costs.

(c) Materials and supplies used for the performance of a Federal award may be charged as direct costs. Charging computing devices as direct costs is allowable for devices that are essential and allocable, but not solely dedicated, to the performance of a Federal award.

(d) Where Federally-donated or furnished materials are used in performing the Federal award, the materials will be used without charge.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.453

What does 2 CFR 200.453 require?

Materials, supplies, and fabricated parts necessary for performance of the award are allowable; purchased materials and supplies must be charged at actual prices net of applicable credits; withdrawals from general stores/stockrooms must be charged at actual net cost under a recognized, consistently applied inventory-pricing method; incoming transportation charges are an allowable part of supply cost. Computing devices may be charged as direct costs when they are essential and allocable to the performance of the federal award, even if not solely dedicated to it. Where federally-donated or furnished materials are used in performing the federal award, the materials must be used without charge.

When does 2 CFR 200.453 apply?

Supplies/materials budget category is used. Laptops, tablets, or other computing devices budgeted under supplies. Application relies on government-furnished or federally donated materials.

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