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

2 CFR 200.458: Pre-award costs

2 CFR 200.458 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: Period of performanceBudget justification

What 2 CFR 200.458 requires

1. Allowable costs

What you must do

Pre-award costs (incurred before the award/subaward start date, directly pursuant to negotiation and in anticipation of the award, and necessary for efficient and timely performance of the scope of work) are allowable only to the extent they would have been allowable if incurred after the start date and only with the written approval of the Federal agency; if approved, they must be charged to the initial budget period unless the Federal agency or pass-through entity specifies otherwise.

When it applies

Any budgeted or claimed cost dated before the proposed award or subaward start date.

Period of performanceBudget justification
Grantable compliance database

Ask how 2 CFR 200.458 applies to your application

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Sections that refer to 2 CFR 200.458

Regulation text of 2 CFR 200.458

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Pre-award costs are those incurred before the start date of the Federal award or subaward directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. These costs are allowable only to the extent that they would have been allowed if incurred after the start date of the Federal award and only with the written approval of the Federal agency. If approved, these costs must be charged to the initial budget period of the Federal award unless otherwise specified by the Federal agency or pass-through entity.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.458

What does 2 CFR 200.458 require?

Pre-award costs (incurred before the award/subaward start date, directly pursuant to negotiation and in anticipation of the award, and necessary for efficient and timely performance of the scope of work) are allowable only to the extent they would have been allowable if incurred after the start date and only with the written approval of the Federal agency; if approved, they must be charged to the initial budget period unless the Federal agency or pass-through entity specifies otherwise.

When does 2 CFR 200.458 apply?

Any budgeted or claimed cost dated before the proposed award or subaward start date.

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