Assistance to Firefighters Grants Program Frequently Asked Questions

Step-by-step instructions for registering with SAM can be found at Step 2: Register with SAM | GRANTS.GOV.

User guides for the AFG Program can be found at: FEMA Grants Outcomes (FEMA GO).

Operating budget information should be based on your current budget year, fiscal or calendar. At the time of application, if the entity is in its 2025 budget year, then the operating budgets for 2025, 2024 and 2023 should be listed. If the entity is in its 2024 budget year at the time of the application, then the operating budgets for 2024, 2023 and 2022 should be listed.

Direct Costs

Direct costs can be identified specifically with a particular final cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.

Typical direct costs include:

• Direct labor costs (i.e., the compensation of employees who work specifically on completing the objectives of a federal award);
• Direct labor employees’ related fringe benefit costs;
• Travel of direct labor employees; and
• Materials, supplies, or other items purchased for use on a specific federal award.

Indirect costs

Indirect costs are incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. Indirect costs are allowable under AFG as described in 2 C.F.R. Part 200, including 2 C.F.R. § 200.414.

Typical indirect costs include:

• Depreciation on buildings and equipment;
• The cost of operating and maintaining facilities; and
• General administration and general expenses, such as the salaries and expenses of executive officers, personnel administration, and accounting.

Applicants with a current negotiated indirect cost rate agreement that desire to charge indirect costs to an award must provide a copy of their negotiated indirect cost rate agreement at the time of application.

Applicants must negotiate an indirect cost agreement with their cognizant federal agency (the federal agency that provides them with the most federal funding).

FEMA does not negotiate indirect cost rates itself. If FEMA is the cognizant federal agency (the Federal agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals on behalf of all Federal agencies), FEMA has an Interagency Reimbursable Work Agreement with the U.S. Department of Health and Human Services (HHS) to negotiate and establish indirect cost rates on behalf of FEMA.

Questions regarding an indirect cost rate agreement should be directed to HHS, Program Support, Financial Management, Cost Allocation Services (Indirect Cost Negotiations).

The de minimis rate is the percentage of the Modified Total Direct Cost (MTDC) that can be used by non-governmental entities who do not have a negotiated Indirect Cost Agreement. Effective October 1, 2024, the de minimis rate increased from 10% to 15%. The recipient is authorized to determine the appropriate rate up to this limit. When applying the de minimis rate, costs must be consistently charged as either direct or indirect costs and may not be double charged or inconsistently charged as both. The de minimis rate does not require documentation to justify its use and may be used indefinitely. Once elected, the recipient or subrecipient must use the de minimis rate for all Federal awards until the recipient or subrecipient chooses to receive a negotiated rate.

MTDC includes all direct salaries and wages, applicable fringe benefits, materials and supplies, services, and travel. MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.

The proper use and application of the de minimis rate is the responsibility of the award recipient. The awarding federal agency may perform a financial monitoring review to ensure compliance with 2 C.F.R. Part 200. All costs must be allowable per 2 CFR 200 and the AFG funding notice, allocable and reasonable and consistently charged as either indirect or direct costs but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all federal awards until such time as a non-federal entity chooses to negotiate for a rate, which the non-federal entity may apply to do at any time.

For additional information, please see: https://www.ecfr.gov/current/title-2/part-200/subject-group-ECFRd93f2a98b1f6455#p-200.414(f)