---
kind: "section"
citation: "29 U.S.C. § 3323"
title: "29"
title_heading: "Labor"
number: "3323"
heading: "Local administrative cost limits"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/3323"
units:
  - "Chapter 32 — Workforce Innovation and Opportunity"
  - "Subchapter II — Adult Education and Literacy"
  - "Part C — Local Provisions"
---

# §3323. Local administrative cost limits

- (a) **In general—** Subject to [subsection (b)](#b), of the amount that is made available under this subchapter to an [eligible provider](/usc/29/3272.md?p=5)—
  - (1) not less than 95 percent shall be expended for carrying out [adult education and literacy activities](/usc/29/3272.md?p=2); and
  - (2) the remaining amount, not to exceed 5 percent, shall be used for planning, administration (including carrying out the requirements of [section 3141 of this title](/usc/29/3141.md)), professional development, and the activities described in paragraphs (3) and (5) of [section 3322 of this title](/usc/29/3322.md).
- (b) **Special rule—** In cases where the cost limits described in [subsection (a)](#a) are too restrictive to allow for the activities described in [subsection (a)(2)](#a-2), the [eligible provider](/usc/29/3272.md?p=5) shall negotiate with the [eligible agency](/usc/29/3272.md?p=3) in order to determine an adequate level of funds to be used for noninstructional purposes.

## Source credit

(Pub. L. 113–128, title II, § 233, July 22, 2014, 128 Stat. 1620.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title.