---
kind: "section"
citation: "49 C.F.R. § 266.11"
title: "49"
number: "266.11"
heading: "Allowable costs."
url: "https://uscodex.org/cfr/49/266.11"
---

# §266.11. Allowable costs.


Allowable costs include only the following costs which are properly allocable to the work performed: Planning and program operation costs which are allowed under Federal Management Circular 74-4; and costs of projects eligible under [§ 266.7](/cfr/49/266.7.md) of this part. All allowable costs shall be authorized by a fully executed grant agreement. A State may incur costs prior to the execution of a grant agreement only if the Administrator, based on the State's demonstration of a compelling need to incur costs prior to the execution of a grant agreement, has authorized the costs in writing prior to their incurrence by the State.


## Notes

### Authority

Authority: Sec. 5 of the Department of Transportation Act (49 U.S.C. 1654), as amended by the Local Rail Service Assistance Act of 1978, Pub. L. 95-607, 92 Stat. 3059.

### Source

Source: 44 FR 51129, Aug. 30, 1979, unless otherwise noted.