---
kind: "section"
citation: "45 C.F.R. § 1629.6"
title: "45"
number: "1629.6"
heading: "What is the required minimum level of coverage?"
url: "https://uscodex.org/cfr/45/1629.6"
---

# §1629.6. What is the required minimum level of coverage?

- (a) A recipient must carry fidelity bond coverage or similar coverage at a minimum level of at least ten percent of its annualized funding level for the previous fiscal year.
- (b) If a recipient is a new recipient, the coverage must be at a minimum level of at least ten percent of the initial grant.
- (c) Notwithstanding paragraphs [(a)](#a) and [(b)](#b) of this section, recipients must not carry coverage under this part at a level less than $100,000.

## Notes

### Authority

Authority: 42 U.S.C. 2996e(1)(A) and 2996f(3).

### Source

Source: 82 FR 37180, Aug. 9, 2017, unless otherwise noted.