MIT’s FY27 F&A rate agreement will reflect the subaward threshold increase from $25,000 to $50,000 (excluding NIH awards). For proposal budgeting of new awards with an anticipated start date on or after July 1, 2026, you will apply our F&A rate to the first $50,000 for each federal subaward. Subaward costs in excess of the first $50,000 are excluded from the award indirect cost calculation.
Reference: OMB Uniform Guidance (2 CFR 200.1)
NIH Awards Subaward Threshold
NIH awards will continue to use the $25,000 threshold for subawards, as well as the 10% de minimis rate (for eligible entities without a negotiated F&A rate (NOT-OD-26-072).
Questions
If you have any questions or concerns on this change (timing, calculation, etc.), please contact your RAS CA or RA Support (ra-help@mit.edu).