On June 30, 2025, the Department of Energy (DOE) Office of Financial Assistance Regulations issued a Financial Assistance Letter (FAL) regarding the Implementation of Indirect and Fringe Benefits Cost Reimbursement Limits on Financial Assistance Awards. This is applicable to new financial assistance awards executed on or after May 8, 2025, including fully conditional awards, to the following Non-Federal Entities:

• For-Profit Organizations
• Nonprofit Organizations
• State and Local Governments

Also, please note that any subrecipient organization shall also adhere to the indirect cost reimbursement limitations set forth in 2 CFR 200.322.

The maximum amount of funds that may be paid or reimbursed to a recipient for indirect and fringe benefits costs will be calculated as a percentage of the project’s Total Award Amount. This amount will be stated as a maximum dollar value in the award terms and conditions. The percentage used to calculate the reimbursement limitations are as follows:

• For-Profit Organizations: up to 15% of the Total Award Amount
• Nonprofit Organizations: up to 15% of the Total Award Amount
• State and Local Governments: up to 10% of the Total Award Amount

Financial assistance awards are governed by 2 CFR 200 as adopted and supplemented by 2 CFR 910. 2 CFR 200.414(c) addresses the use of a recipient’s negotiated indirect cost rate agreement (NICRA). The percentages listed above may deviate from the recipient’s negotiated indirect cost rates specified in the award.

Click here to read a fact sheet on the letter with FAQs.

Additionally, join NCAP, CAPLAW and WIPFLI to learn about the potential impacts the FAL will have on your local Weatherization Program. Attendees will hear from legal and fiscal experts about how grantees are responding and strategies WAP providers can implement to meet requirements, mitigate risk, and maintain fiscal strength long-term.

Presenters:

• Denise Harlow, NCAP CEO
• Allison Ma’luf, CAPLAW Executive Director + General Counsel
• Denes Tobie, CPA, WIPFLI Partner

Click here to register for the webinar.