---
kind: "section"
citation: "49 C.F.R. § 110.50"
title: "49"
number: "110.50"
heading: "Disbursement of grant funds."
url: "https://uscodex.org/cfr/49/110.50"
---

# §110.50. Disbursement of grant funds.

- (a) **Pre-award costs.**
  - (1) PHMSA expects the recipient to be fully aware that pre-award costs result in borrowing against future support and that such borrowing must not impair the recipient's ability to accomplish the activities in the approved period of performance.
  - (2) A recipient may, at its own risk, incur pre-award costs to cover costs up to 90 days before the beginning date of the initial period of performance.
  - (3) The incurrence of pre-award costs in anticipation of a competitive or non-competitive grant imposes no obligation on PHMSA under any circumstances, including in the event of:
    - (i) The absence of appropriations;
    - (ii) A grant is not subsequently being made; or
    - (iii) **A grant being made for a lesser amount than the recipient anticipated.**
- (b) Payments may not be made for activities not approved in the grant agreement. If a recipient seeks additional grant funds, the supplemental amendment request will be evaluated on the basis of needs, performance, and availability of grant funds. An existing grant is not a commitment of future funding.

## Notes

### Amendments

[84 FR 4000, Feb. 14, 2019]

### Authority

Authority: 49 U.S.C. 5101-5128; 49 CFR 1.97.

### Source

Source: Amdt. 110-1, 57 FR 43067, Sept. 17, 1992, unless otherwise noted.

### Amendments

[84 FR 4000, Feb. 14, 2019]
