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IA SF2386
Bill
Status
Introduced
2/19/2026
Primary Sponsor
State Government
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AI Summary
- Establishes a uniform statewide cap limiting indirect costs charged to state-funded grants to no more than 5% of the total grant amount
- Defines "indirect costs" as shared administrative expenses like executive management, accounting, human resources, utilities, and IT services that cannot be directly assigned to a specific program
- Prohibits grantees from reclassifying indirect costs as direct costs to circumvent the cap, and bars departments from waiving the cap unless expressly authorized by law
- Requires grant budgets to separately identify indirect and direct costs, with grantees maintaining records for at least 10 years after final payment to substantiate all indirect cost charges
- Applies to grants awarded or renewed on or after July 1, 2025, covering recipients including nonprofits, local governments, tribal governments, higher education institutions, and for-profit entities
Legislative Description
A bill for an act relating to indirect costs charged to state-funded grants, and including applicability provisions.(Formerly SSB 3074.)
Last Action
Committee report, approving bill. S.J. 338.
2/19/2026
Full Bill Text
No bill text available