Indirect Cost Recovery Rate Changes for State of California Agreements

Effective July 1, 2023, the Facilities and Administrative (F&A) indirect cost recovery rate for State of California funded agreements will increase to 35% for on-campus awards. The indirect cost recovery rate for projects performed off-campus will remain at a maximum of 25% of Modified Total Direct Costs (MTDC).

Rates as of February 2023 are as follows.

Period On-Campus Off-Campus
July 1, 2022 through June 30, 2023 30% 25%
July 1, 2023 through June 30, 2024 35% 25%

These rates do not apply to funds originating from a federal award subject to the Uniform Guidance (opens in new window). In accordance with 2 CFR § 200.414 (opens in new window) and 2 CFR § 200.331 (opens in new window), when UC performs as a subrecipient to a state pass-through entity under a federal award, the campus will recover its federally-negotiated F&A rate.

Additional information about UC rates for indirect cost recovery for on-campus projects funded by State of California agencies is available on the UC Office of the President's website (opens in new window). If you have questions about your state-funded agreements, contact the CGA Service Desk.