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If the applicant does not have an Indirect Cost Agreement with the Federal government, can an applicant include overhead and other indirect costs in their proposed budget?

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If the applicant does not have an Indirect Cost Agreement with the Federal government, can an applicant include overhead and other indirect costs in their proposed budget?

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Yes. Except for Brownfields assistance agreements, applicants are generally allowed to include indirect costs; such as expenses for rent, supplies and other administrative and office support costs on the “indirect costs” line of their proposed budget. However, organizations without a Federally approved/negotiated indirect cost rate agreement MUST submit an indirect cost rate proposal to their cognizant Federal agency (with copy to EPA) for approval within 90 days of being notified that they will receive a grant award. Please note: recipients are not allowed to seek reimbursement for indirect costs until an approved indirect cost rate is obtained.

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