---
kind: "section"
citation: "34 C.F.R. § 694.11"
title: "34"
number: "694.11"
heading: "What is the maximum indirect cost rate for an agency of a State or local government?"
url: "https://uscodex.org/cfr/34/694.11"
---

# §694.11. What is the maximum indirect cost rate for an agency of a State or local government?


Notwithstanding 34 CFR [75.560-75.562](/cfr/34/75.560-75.562.md) and [2](/cfr/34/2.md) CFR [part 200](/cfr/34/part200.md), subpart [E](/cfr/34/subpartE.md)—[Cost](/cfr/34/subpartCost.md) Principles, the maximum indirect cost rate that an agency of a State or local government receiving funds under GEAR UP may use to charge indirect costs to these funds is the lesser of—

- (a) The rate established by the negotiated indirect cost agreement; or
- (b) **Eight percent of a modified total direct cost base.**

## Notes

### Amendments

[65 FR 24760, Apr. 27, 2000. Redesignated at 75 FR 65798, Oct. 26, 2010, as amended at 79 FR 76105, Dec. 19, 2014]

### Authority

Authority: 20 U.S.C. 1070a-21 to 1070a-28.

### Source

Source: 65 FR 24760, Apr. 27, 2000, unless otherwise noted.

### Amendments

[65 FR 24760, Apr. 27, 2000. Redesignated at 75 FR 65798, Oct. 26, 2010, as amended at 79 FR 76105, Dec. 19, 2014]