40 CFR § 35.4080 - Does my group get a lump sum up front, or does EPA reimburse us for costs we incur?

---
identifier: "/us/cfr/t40/s35.4080"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "40 CFR § 35.4080 - Does my group get a lump sum up front, or does EPA reimburse us for costs we incur?"
title_number: 40
title_name: "Protection of Environment"
section_number: "35.4080"
section_name: "Does my group get a lump sum up front, or does EPA reimburse us for costs we incur?"
chapter_name: "ENVIRONMENTAL PROTECTION AGENCY"
subchapter_number: "B"
subchapter_name: "GRANTS AND OTHER FEDERAL ASSISTANCE"
part_number: "35"
part_name: "STATE AND LOCAL ASSISTANCE"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 7401  33 U.S.C. 1251  42 U.S.C. 300f  42 U.S.C. 6901  7 U.S.C. 136  15 U.S.C. 2601  42 U.S.C. 13101  Pub. L. 104-134, 110 Stat. 1321, 1321-299 (1996); Pub. L. 105-65, 111 Stat. 1344, 1373 (1997), 2 CFR 200."
cfr_part: "35"
---


# 35.4080 Does my group get a lump sum up front, or does EPA reimburse us for costs we incur?

(a) EPA pays your group by reimbursing you for “allowable” costs, which are costs that are:

(1) Grant related;

(2) “Allocable”;

(3) “Reasonable”; and

(4) Necessary for the operation of the organization or the performance of the award.

(b) You will be reimbursed for the allowable costs up to the amount of the TAG if your group incurred the costs during the approved “project period” of the grant (except for allowable costs of incorporation which may be incurred prior to the project period), and your group is legally required to pay those costs.