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If an EPA grant recipient is forced to lay off employees due to COVID-19 related project terminations, are the costs for severance packages allowable?

If recipients are forced to temporarily or permanently lay off personnel compensated with EPA financial assistance due to COVID-19 impacts, the allowability of severance costs will be determined by EPA as the awarding agency or the recipient’s cognizant agency for indirect costs, as appropriate, under 2 CFR 200.431(i). Grants Management Officers (GMOs) will coordinate with the cognizant agency if a recipient requests reimbursement for severance costs.

Return to Frequent Questions about Grants and Coronavirus (COVID-19).