---
kind: "section"
citation: "31 C.F.R. § 205.5"
title: "31"
number: "205.5"
heading: "What are the thresholds for major Federal assistance programs?"
url: "https://uscodex.org/cfr/31/205.5"
---

# §205.5. What are the thresholds for major Federal assistance programs?

- (a) Table A of this section defines major Federal assistance programs based on the dollar amount of an individual Federal assistance program and the dollar amount of all Federal assistance being received by a State for all Federal assistance programs including non-cash programs. A State must locate the appropriate row in Column A based upon the total amount of Federal assistance received. In that same row, a State must apply the percentage from Column B to the dollar value of all its Federal assistance programs to determine the State's threshold for major Federal assistance programs. For example, if the total amount received by a State for all Federal assistance programs is $50 million, then that State's threshold for major Federal assistance programs is 6% of $50 million or $3 million. A State which receives more than $10 billion under Federal assistance programs will have a minimum default threshold of $60 million.
- (b) To ensure adequate coverage of all State programs, a State must, on an annual basis, compare its program coverage using the percentage obtained from Table A to the program coverage which would result using a percentage which is half of the percentage obtained from Table A. For example, a State receiving $1 billion in Federal Assistance would use Table A to learn that its threshold level would be .60 percent of $1 billion. A State would compare program coverage at .60 percent of $1 billion to program coverage at .30 percent of $1 billion.
- (c) If the comparison conducted under [paragraph (b)](#b) of this section results in a reduction of program coverage that is greater than 10%, a State must lower its threshold, or add programs, until the difference is less than or equal to 10%.
- (d) In accordance with [§ 205.3(b)](/cfr/31/205.3.md?p=b), a State may lower its threshold to include additional programs. All of a State's programs that meet this lower threshold would be subject to this subpart A.
- (e) Unless specified otherwise, major Federal assistance programs must be determined from the most recent Single Audit data available.

## Notes

### Authority

Authority: 5 U.S.C. 301; 31 U.S.C. 321, 3332, 3335, 6501, 6503.

### Source

Source: 67 FR 31885, May 10, 2002, unless otherwise noted.