38 CFR § 21.443 - Permissible uses of VEPFS grant funds.

---
identifier: "/us/cfr/t38/s21.443"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "38 CFR § 21.443 - Permissible uses of VEPFS grant funds."
title_number: 38
title_name: "Pensions, Bonuses, and Veterans' Relief"
section_number: "21.443"
section_name: "Permissible uses of VEPFS grant funds."
chapter_name: "DEPARTMENT OF VETERANS AFFAIRS"
part_number: "21"
part_name: "VETERAN READINESS AND EMPLOYMENT AND EDUCATION"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
cfr_part: "21"
---


# 21.443 Permissible uses of VEPFS grant funds.

(a) VEPFS grant funds may be used only to fund outcomes payments if an intervention achieves outcomes at a pre-set target level that has been agreed to in a PFS agreement before service delivery begins for a PFS project with a goal to improve employment outcomes for Veterans with service-connected disabilities.

(b) To pay for the indirect costs of administering a grant, regardless of whether an intervention achieves outcomes at a pre-set target level, a recipient may:

(1) Use a Federally approved indirect cost rate (a rate already negotiated with the Federal Government);

(2) Use a 10% de minimis rate of modified total direct costs;

(3) Negotiate an indirect cost rate for the first time; or

(4) Claim certain costs directly following 2 CFR 200.413.

(Authority: 38 U.S.C. 3119, 2 CFR 200.414)