Iowa SF2386 establishes a 5% cap on indirect costs for state-funded grants, effective July 1, 2026.

Iowa SF2386 sets a statewide limit on indirect costs for state-funded grants, aiming to ensure public funds primarily support program services. The bill caps indirect costs at 5% of the total grant amount, with stricter limits allowed if authorized by law or necessary due to funding conditions. Indirect costs include general administration and general expenses. The bill requires departments or establishments to incorporate these provisions into grant solicitations and agreements, review budgets for compliance, and monitor indirect costs.

Iowa SF2386 establishes a 5% cap on indirect costs for state-funded grants, effective July 1, 2026.

Iowa SF2386 sets a statewide limit on indirect costs for state-funded grants, aiming to ensure public funds primarily support program services. The bill caps indirect costs at 5% of the total grant amount, with stricter limits allowed if authorized by law or necessary due to funding conditions. Indirect costs include general administration and general expenses. The bill requires departments or establishments to incorporate these provisions into grant solicitations and agreements, review budgets for compliance, and monitor indirect costs.