---
kind: "section"
citation: "42 U.S.C. § 16352"
title: "42"
title_heading: "The Public Health and Welfare"
number: "16352"
heading: "Cost sharing"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/16352"
units:
  - "Chapter 149 — National Energy Policy and Programs"
  - "Subchapter IX — Research and Development"
  - "Part I — Research Administration and Operations"
---

# §16352. Cost sharing

- (a) **Applicability—** Notwithstanding any other provision of law, in carrying out a research, development, demonstration, or commercial application program or activity that is initiated after August 8, 2005, the [Secretary](/usc/42/15801.md?p=4) shall require cost-sharing in accordance with this section.
- (b) **Research and development—**
  - (1) **In general—** Except as provided in paragraphs [(2)](#b-2), [(3)](#b-3), and [(4)](#b-4) and [subsection (f)](#f), the [Secretary](/usc/42/15801.md?p=4) shall require not less than 20 percent of the cost of a research or development activity described in [subsection (a)](#a) to be provided by a non-Federal source.
  - (2) **Exclusion—** [Paragraph (1)](#b-1) shall not apply to a research or development activity described in [subsection (a)](#a) that is of a basic or fundamental nature, as determined by the appropriate officer of the [Department](/usc/42/15801.md?p=1).
  - (3) **Reduction—** The [Secretary](/usc/42/15801.md?p=4) may reduce or eliminate the requirement of [paragraph (1)](#b-1) for a research and development activity of an applied nature if the [Secretary](/usc/42/15801.md?p=4) determines that the reduction is necessary and appropriate.
  - (4) **Exemption for institutions of higher education and other nonprofit institutions—**
    - (A) **In general—** [Paragraph (1)](#b-1) shall not apply to a research or development activity performed by an [institution of higher education](/usc/42/16182.md?p=6) or [nonprofit](/usc/42/300s–3.md?p=3) institution (as defined in [section 4](/usc/42/4.md) of the Stevenson-Wydler Technology Innovation Act of 1980 ([15 U.S.C. 3703](/usc/15/3703.md))).
    - (B) **Termination date—** The exemption under [subparagraph (A)](#b-4-A) shall apply during the 2-year period beginning on August 9, 2022.
- (c) **Demonstration and commercial application—**
  - (1) **In general—** Except as provided in [paragraph (2)](#c-2) and [subsection (f)](#f), the [Secretary](/usc/42/15801.md?p=4) shall require that not less than 50 percent of the cost of a demonstration or commercial application activity described in [subsection (a)](#a) to[^1] be provided by a non-Federal source.
  - (2) **Reduction of non-Federal share—** The [Secretary](/usc/42/15801.md?p=4) may reduce the non-Federal share required under [paragraph (1)](#c-1) if the [Secretary](/usc/42/15801.md?p=4) determines the reduction to be necessary and appropriate, taking into consideration any technological risk relating to the activity.
- (d) **Calculation of amount—** In calculating the amount of a non-Federal contribution under this section, the [Secretary](/usc/42/15801.md?p=4)—
  - (1) may include allowable costs in accordance with the applicable cost principles, including—
    - (A) cash;
    - (B) personnel costs;
    - (C) the value of a service, other resource, or third party in-kind contribution determined in accordance with the applicable circular of the Office of Management and Budget;
    - (D) indirect costs or facilities and administrative costs; or
    - (E) any funds received under the power program of the Tennessee Valley Authority (except to the extent that such funds are made available under an annual appropriation Act); and
  - (2) shall not include—
    - (A) revenues or royalties from the prospective operation of an activity beyond the time considered in the award;
    - (B) proceeds from the prospective sale of an asset of an activity; or
    - (C) other appropriated Federal funds.
- (e) **Repayment of Federal share—** The [Secretary](/usc/42/15801.md?p=4) shall not require repayment of the Federal share of a cost-shared activity under this section as a condition of making an award.
- (f) **Exclusions—** This section shall not apply to—
  - (1) a cooperative research and development agreement under the Stevenson-Wydler Technology Innovation Act of 1980 ([15 U.S.C. 3701](/usc/15/3701.md) et seq.);
  - (2) a fee charged for the use of a [Department](/usc/42/15801.md?p=1) facility; or
  - (3) an award under—
    - (A) the small business innovation research program under [section 638 of title 15](/usc/15/638.md); or
    - (B) the small business technology transfer program under that section.

## Footnotes

[^1]: So in original. The word “to” probably should not appear.

## Source credit

(Pub. L. 109–58, title IX, § 988, Aug. 8, 2005, 119 Stat. 910; Pub. L. 115–246, title I, § 108(a), Sept. 28, 2018, 132 Stat. 3134; Pub. L. 117–167, div. B, title VI, § 10725(a), Aug. 9, 2022, 136 Stat. 1709.)

## Notes

### Editorial Notes

### References in Text

The Stevenson-Wydler Technology Innovation Act of 1980, referred to in subsec. (f)(1), is Pub. L. 96–480, Oct. 21, 1980, 94 Stat. 2311, which is classified generally to chapter 63 (§ 3701 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 3701 of Title 15 and Tables.

### Amendments

2022—Subsec. (b)(4)(B). Pub. L. 117–167 substituted “August 9, 2022” for “September 28, 2018”.

2018—Subsec. (b)(1). Pub. L. 115–246, § 108(a)(1), substituted “Except as provided in paragraphs (2), (3), and (4)” for “Except as provided in paragraphs (2) and (3)”.

Subsec. (b)(4). Pub. L. 115–246, § 108(a)(2), added par. (4).