§16352 Cost Sharing

Summary

For any research, development, demonstration, or commercial program started after August 8, 2005, the Secretary must require cost sharing. For research and development projects, at least 20% of the cost must come from non‑Federal sources unless the work is basic/fundamental, the Secretary reduces the share for applied work, or the work is done by a college or nonprofit (those institutions are exempt for the 2‑year period beginning August 9, 2022). For demonstration or commercial activities, at least 50% must come from non‑Federal sources, but the Secretary can lower that amount if needed, taking technological risk into account. Non‑Federal contributions can be cash, personnel costs, in‑kind services or third‑party support, indirect or facilities costs, or funds from the Tennessee Valley Authority power program (except if those funds come from an annual appropriation). They cannot include future revenues or royalties beyond the award period, proceeds from the future sale of an asset, or other Federal funds. The Secretary must not require repayment of the Federal share as a condition of an award. These cost‑sharing rules do not apply to cooperative research and development agreements under the Stevenson‑Wydler Act, fees to use a Department facility, or awards under the SBIR or STTR programs (section 638 of title 15).