Source + trust record
Source checked as of September 18, 2026. Primary authority: EDD WSD18-15, EDD WSIN25-17, and current Uniform Guidance.
Check result: WSD18-15 remains active California indirect-cost guidance. For awards subject to the 2024 Uniform Guidance revisions, the de minimis rate is 15% of Modified Total Direct Costs and the MTDC subaward threshold is $50,000. Entities should use the negotiated rate or other allowable federal option that actually applies to the award and reconcile budgets, invoices, subawards, and actual charges to the same approved methodology. This AI-assisted brief does not receive human legal or compliance review. Official sources control.
WDB decision strip
| STATUS | ACTION | PRIMARY OWNER | CURRENT TIMING | IMPACT |
|---|---|---|---|---|
| FINAL · ACTIVE | APPLY DOCUMENTED INDIRECT RATE | Fiscal Leadership | During budgeting, charging, and reconciliation | Indirect costs · Cost allocation · De minimis rate · Grant budgets |
The bottom line
Indirect costs must be charged through an allowable, documented methodology applied consistently to the correct cost base. Fiscal teams should use the entity’s current negotiated rate or other allowable federal option and make sure budgets, invoices, subrecipient agreements, and actual charges use the same treatment.
Indirect costs need a documented rate and a consistent cost base—especially now that federal thresholds and the de minimis rate have changed
WSD18-15 explains how workforce recipients and subrecipients charge indirect costs to federal awards. The directive covers negotiated indirect cost rates, the de minimis option, Modified Total Direct Costs, rate documentation, and the difference between indirect and direct charging.
Current rates to use
Issued
June 17, 2019
De minimis rate
15%
MTDC subaward threshold
$50,000
Updated
Federal rules effective Oct. 1, 2024
Executive takeaway
The federal de minimis indirect-cost rate is now 15 percent of Modified Total Direct Costs, not the 10 percent rate reflected in older guidance. For awards subject to the 2024 Uniform Guidance revisions, the MTDC base generally includes the first $50,000 of each subaward rather than the older $25,000 amount. Organizations with negotiated rates should follow their applicable rate agreement.
Three common failure points
- Using an outdated indirect rate or MTDC base.
- Charging the same type of cost directly on one grant and indirectly on another without a consistent policy.
- Applying indirect costs to excluded portions of the cost base.
Current federal adjustment: WSIN25-17 confirms the 15% de minimis rate and $50,000 MTDC threshold for applicable newer awards. WSD18-15 remains active in all other respects.
Operational considerations for Local Boards
- Identify which grants use a negotiated rate and which use de minimis.
- Confirm the award date and applicable Uniform Guidance version.
- Document the MTDC base and exclusions used for each grant.
- Require subrecipients to provide rate documentation before reimbursement.
- Reconcile indirect-cost calculations during routine fiscal monitoring.
Source basis
Primary source: EDD WSD18-15 — Indirect Cost Rates