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Nonprofits urge state to reimburse indirect costs on grants to preserve services

Joint Committee on State Administration and Regulatory Oversight, Massachusetts Legislature · November 5, 2025
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Summary

Nonprofit leaders from UTech and others urged the committee to report H.3428/S.2203 to require state grants and contracts to reimburse indirect costs (rent, utilities, administrative overhead), saying current practice leaves organizations unable to cover necessary operating costs and threatens service continuity for vulnerable populations.

Representatives from UTech testified in support of H.3428 and S.2203, bills that would require state grants and contracts with nonprofit providers to include reimbursement for indirect (overhead) costs such as rent, technology, staff training, data systems and utilities.

What witnesses said: UTech leaders said…

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