2 CFR § 1128.625 - Allowability of program income as cost sharing or matching.

---
identifier: "/us/cfr/t2/s1128.625"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "2 CFR § 1128.625 - Allowability of program income as cost sharing or matching."
title_number: 2
title_name: "Federal Financial Assistance"
section_number: "1128.625"
section_name: "Allowability of program income as cost sharing or matching."
chapter_name: "DEPARTMENT OF DEFENSE"
subchapter_number: "D"
subchapter_name: "ADMINISTRATIVE REQUIREMENTS TERMS AND CONDITIONS FOR COST-TYPE GRANTS AND COOPERATIVE AGREEMENTS TO NONPROFIT AND GOVERNMENTAL ENTITIES"
part_number: "1128"
part_name: "RECIPIENT FINANCIAL AND PROGRAM MANAGEMENT: GENERAL AWARD TERMS AND CONDITIONS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301 and 10 U.S.C. 113."
regulatory_source: "85 FR 51171, Aug. 19, 2020, unless otherwise noted."
cfr_part: "1128"
---


# 1128.625 Allowability of program income as cost sharing or matching.

(a) *OMB guidance.* OMB guidance in 2 CFR 200.307(e)(3) specifies that, with the prior approval of the Federal awarding agency, recipients may use program income to meet cost sharing or matching requirements of their awards.

(b) *Award terms and conditions*—(1) *General.* A DoD Component's general terms and conditions must include the wording appendix F to this part provides as Section D of FMS Article VI if, in FMS Article VII of those terms and conditions, the DoD Component specifies that recipients dispose of program income using either:

(i) The cost sharing or matching alternative described in paragraph (b)(1)(iii) of § 1128.720; or

(ii) A combination alternative, as described in paragraph (b)(1)(iv) of § 1128.720, that includes use of at least some program income as cost sharing or matching.

(2) *Exception.* A DoD Component may reserve Section D of FMS Article VI if FMS Article VII of those terms and conditions does not provide that recipients will use any program income as cost sharing or matching.