2 CFR § 200.418 - Costs incurred by states and local governments.

---
identifier: "/us/cfr/t2/s200.418"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "2 CFR § 200.418 - Costs incurred by states and local governments."
title_number: 2
title_name: "Federal Financial Assistance"
section_number: "200.418"
section_name: "Costs incurred by states and local governments."
chapter_name: "OFFICE OF MANAGEMENT AND BUDGET GUIDANCE"
part_number: "200"
part_name: "UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "31 U.S.C. 503; 31 U.S.C. 6101-6106; 31 U.S.C. 6307; 31 U.S.C. 7501-7507."
regulatory_source: "89 FR 30136, Apr. 22, 2024, unless otherwise noted."
cfr_part: "200"
---


# 200.418 Costs incurred by states and local governments.

Costs incurred or paid by a State or local government on behalf of and in direct benefit to its IHEs are allowable. These costs include but are not limited to fringe benefit programs such as pension costs and Federal Insurance Contributions Act (FICA) costs. These costs are allowable regardless of whether they are recorded in the accounting records of the institutions, subject to the following conditions:

(a) The costs meet the requirements of § 200.402-200.411;

(b) The costs are properly supported by approved cost allocation plans in accordance with the applicable cost accounting principles of this part; and

(c) The costs are not otherwise borne directly or indirectly by the Federal Government.