Unallowable Costs
In addition to the unallowable costs outlined in the Uniform Guidance, there are some costs that must be authorized in advance or are prohibited under federal, state or local laws or regulations. These costs include, but are not limited to:
- Advertising.Only for very special circumstances can federal funds be used to purchase television and radio time for highway safety public service messages. Such expenditures must be approved in advance.
- Supplanting.Federal funds cannot supplant (replace) funds from any other sources. The term “supplanting,” as used in federal acts and guidelines, refers to the use of federal funds to support personnel or an activity already supported by local or state funds. Supplanting is prohibited.
- Program Income.Program-generated income can be used as project match as long as this is specifically approved in advance by TxDOT. See Chapter 5, Section 6, “Program Income,” for more information.
- Office Equipment.Federal highway safety grant funds cannot be used to purchase office furnishings.
- Other Equipment.Equipment with a unit acquisition cost of $5,000 or greater is prohibited without prior written approval from TxDOT and NHTSA. See Chapter 5, Section 12, “Property Management,” for more information on equipment/office furnishings.
- Out-of-State Travel.Out-of-state travel is prohibited without prior written approval from TxDOT. See Chapter 5, Section 10, “Travel for Subgrantees,” for more information on travel.
- Alcoholic Beverages and Food.Federal traffic safety funds cannot be used to purchase alcoholic beverages or food.
- Gratuities.Tips and/or gratuities are unallowable.
- Cash Prizes/Gift Certificates. Cash prizes/gift certificates will be considered on an exception basis as allowable costs. TRF-BTS must approve a separate written request detailing special circumstances for their allowances. These authorizations will be considered on a limited basis.
- Lobbying.Federal and state grant funds cannot be used for lobbying activities.
- Promotional Items Exclusively for Subgrantee Staff .T-shirts, uniforms, polo shirts, caps, etc. cannot be purchased exclusively for subgrantee staff.
Equipment regularly purchased under NHTSA grants may be subject to 2 C.F.R. §200.216, Prohibition on certain telecommunications and video surveillance services and equipment. This provision prohibits purchasing items produced by certain companies. See
for more information.