Changes Coming to the Uniform Guidance

Written by Justo Torres, Director, Contracts and Grants.

In 2014, the U.S. Office of Management and Budget created the Uniform Guidance with the goal to streamline the myriad of regulations that governed Federal-funding grants and cooperative agreements. 

In September of 2023, the Office of Management and Budget announced changes that will go into effect in October 2024.

Highlights of Changes

 The changes that will have the most material impact are:

  1. An increase in the single audit threshold from $750,000 to $1,000,000.
  2. Use of the term recipient or subrecipient instead of the current term, non-federal entity.
  3. An increase in the de minimis facilities and administrative cost rate from 10% to 15%, for those institutions who do not have a negotiated rate agreement.
  4. An increase in the equipment threshold from $5,000 to $10,000.
  5. An increase in the subaward exclusion threshold from $25,000 to $50,000 modified direct costs base.
  6. New language to remove many current prior written approval requirements.

The full text of the changes can be found in the Draft Federal Register Notice and Revisions to the Uniform Guidance. The Office of Contracts and Grants will hold meetings with the appropriate central offices to discuss the implementation of the updates.