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Committee signals support to return federal indirect costs to DCCA for operations
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Summary
During the budget hearing committee members and the department discussed returning roughly $1.3 million in indirect costs from federal grants to the Department of Community and Cultural Affairs for local use; the committee chair said budget language to remit those funds back to DCCA would be added for consideration.
House committee members and DCCA officials discussed indirect-cost recoveries on federal grants and whether those funds could be remitted back to the Department of Community and Cultural Affairs for operational needs.
The department presented an estimate of roughly $1.3 million in indirect costs across its federal grants. Lawmakers asked whether remitting those indirect-cost recoveries back to DCCA would create locally available funds that could be used as matching for other grants or to shore up operations such as the Office of Aging.
Committee Vice Chair BJ Atul and Secretary Frank Rebolman spoke in favor of the idea; the committee chair indicated the Ways and Means committee would add language to the FY2026 budget to allow DCCA to utilize the indirect-cost recoveries. Department staff said they would confirm whether the funds could be used for specific matching requirements, but voiced support for receiving the remitted funds to address shortages in operations and matching needs.
Why it matters: Indirect-cost returns can convert federally derived funds into locally available resources and could be used to meet local matching requirements or cover administrative costs otherwise unfunded by restricted federal grants. The committee’s stated intent to include such language does not constitute an enacted appropriation; final authority rests with the full legislature and applicable grant rules.
