IA SSB3074

Caps indirect costs charged to state-funded grants at 5% of the total grant amount, establishing a uniform statewide limit across all state departments and establishments.

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 or project.

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 supporting records for at least 10 years after final payment or closeout.

Applies to grants executed or renewed on or after July 1, 2025, affecting nonprofits, local governments, tribal governments, educational institutions, and for-profit entities receiving state grants.