Is there a restricted indirect cost rate for this program?

No. For this grant competition, you may charge indirect costs using the rate negotiated with your cognizant federal agency (e.g., Department of Education, Department of Health and Human Services, Department of the Interior). Individuals who apply for any grant competition through the Department of Education are not allowed to budget for an indirect cost rate.

You are encouraged to give priority to direct services to students by limiting the indirect costs charged to the project. You will not be penalized for failure to reduce indirect costs nor will you gain a competitive advantage if you do.

If you claim indirect costs in the budget for your proposed project and do not have a negotiated rate with the federal government, ED will establish a temporary indirect cost rate for your project (i.e., 10 percent of the direct salaries and wages included in the budget for the project). You will be allowed to draw at the temporary rate during the first 90 days after ED made the grant, as determined by the date of the Grant Award Notification. If you do not submit an indirect cost rate proposal to your cognizant agency within that first 90 days, you will not be allowed to draw any more funds for indirect costs until you obtain a federally recognized indirect cost rate from your cognizant agency. For more information about indirect cost rates, please visit www.ed.gov/about/offices/list/ocfo/intro.html.