49 CFR § 266.11 - Allowable costs.

---
identifier: "/us/cfr/t49/s266.11"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "49 CFR § 266.11 - Allowable costs."
title_number: 49
title_name: "Transportation"
section_number: "266.11"
section_name: "Allowable costs."
chapter_name: "FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
part_number: "266"
part_name: "ASSISTANCE TO STATES FOR LOCAL RAIL SERVICE UNDER SECTION 5 OF THE DEPARTMENT OF TRANSPORTATION ACT"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 5 of the Department of Transportation Act (49 U.S.C. 1654), as amended by the Local Rail Service Assistance Act of 1978, Pub. L. 95-607, 92 Stat. 3059."
regulatory_source: "44 FR 51129, Aug. 30, 1979, unless otherwise noted."
cfr_part: "266"
---


# 266.11 Allowable costs.

Allowable costs include only the following costs which are properly allocable to the work performed: Planning and program operation costs which are allowed under Federal Management Circular 74-4; and costs of projects eligible under § 266.7 of this part. All allowable costs shall be authorized by a fully executed grant agreement. A State may incur costs prior to the execution of a grant agreement only if the Administrator, based on the State's demonstration of a compelling need to incur costs prior to the execution of a grant agreement, has authorized the costs in writing prior to their incurrence by the State.