HHS adopts OMB grant regulations in two-phase approach

Current micropurchase and simplified acquisition thresholds at 2 CFR 320 (Procurement Methods) replace HHS-specific definitions that included older threshold amounts.

Note: HHS previously adopted the revised thresholds in 2018 but will codify them with the interim final rule.

Oct. 1, 2024

2 CFR 200.320

Updated OMB closeout provisions include a new “prompt closeout” option and clarifications on indirect rate finalization during the closeout period.

Note: HHS previously adopted the OMB closeout provisions in lieu of HHS-specific closeout provisions in September 2023.

Oct. 1, 2024

2 CFR 200.344

The subaward threshold for modified total direct cost (MTDC) calculation increased from $25,000 to $50,000.

Oct. 1, 2024

2 CFR 200.1

The equipment threshold increased from $5,000 to $10,000, and clarifications on disposition of equipment were added.

Oct. 1, 2024

The supplies threshold increased from $5,000 to $10,000, and clarifications on disposition of supplies were added.

Oct. 1, 2024

The fixed amount subawards threshold increased from $250,000 to $500,000.

Oct. 1, 2024

2 CFR 200.333

The de minimis cost rate increased from 10% to up to 15% for U.S. organizations, and clarifications were added.

Oct. 1, 2024

2 CFR 200.414

The audit threshold increased from $750,000 to $1 million.

Recipient’s fiscal year-end falling on or after Oct. 1, 2024

2 CFR 200.501

Provision revised for HHS adoption of 2 CFR 200

2 CFR 300.1

2 CFR 300.106

Conflict of interest policy requirements that apply in addition to 2 CFR 200.112 requirements

45 CFR 75.112

2 CFR 300.112

Special provisions for awards to for-profit organizations as recipients, including emphasis on prohibition against profit, program income restrictions, and audits

Note: “For-profit organizations” replaces prior 45 CFR 75 references to “commercial organizations.”

45 CFR 75.216 and 45 CFR 75.322(f)

2 CFR 300.218

Special provisions for awards to federal agencies, including restrictions on program income, salary/fringe costs for federal employees and indirect costs

45 CFR 75.217

2 CFR 300.219

Nondiscrimination requirements regarding sexual orientation and gender identity in addition to 2 CFR 200.300 statutory and national policy requirements

45 CFR 75.300

2 CFR 300.300

Requirements around expenditure of program income, rebates, etc., prior to a state requesting additional federal cash payments

45 CFR 75.305(a)

2 CFR 300.305

Prior approval of research patient care costs required in addition to compliance with approval requirements under 2 CFR 200.308(f)

45 CFR 75.308(c)(1)(ix)

2 CFR 300.308

Prohibits HHS from asserting rights to inventions made by the recipient under awards made primarily for educational purposes

45 CFR 75.307(c)(2)

2 CFR 300.315

Indirect costs under HHS awards for training, and awards to foreign organizations and foreign public entities performed fully outside the U.S., are limited to 8% of MTDC exclusive of tuition and related fees, direct expenditures for equipment, and subawards in excess of $25,000. Incorporates HHS allowance for negotiated indirect costs to be paid to American University of Beirut and the World Health Organization.

45 CFR 75.414(c)(1)

2 CFR 300.414

Requirements for independent research and development costs

45 CFR 75.476

2 CFR 300.477

Clarifies that payments for noncompliance with certain minimum health coverage requirements are not allowable costs

45 CFR 75.477

2 CFR 300.478

Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, is transferred to 2 CFR 300

45 CFR Appendix IX

2 CFR 300 Appendix IX