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What is an Allowable Cost?

Federal awards generally provide award recipients and subrecipients with the necessary funds to cover costs associated with the award project.

According to the DOJ Grants Financial Guide, costs are allowable when "they are reasonable, allocable to, and necessary for the performance of the federal award." This can include employee compensation, some travel expenses, publication costs, and other charges.

Unallowable costs, on the other hand, may include expenses involving land acquisition, entertainment, fines and penalties, and more.

As you plan your budget proposal, review the DOJ Grants Financial Guide for more examples of allowable and unallowable costs.

Review Allowable Costs


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