Not more than 5 percent of a grant may go to administering it
What the document says“not more than 5 percent of the amount of a grant made available in paragraphs (1) through (5) under ``Federal Emergency Management Agency--Federal Assistance'', may be used by the recipient for expenses directly related to administration of the grant.”
Section 302(a). For the first five grant allocations in the federal assistance account, a recipient may spend at most 5 percent of the grant on the cost of administering it. The subsection applies notwithstanding section 2008(a)(12) of the Homeland Security Act of 2002. Subsection (b) extends the same authority to a state recipient administering a nonprofit security grant.
What the document actually says“not more than 5 percent of the amount of a grant made available in paragraphs (1) through (5) under ``Federal Emergency Management Agency--Federal Assistance'', may be used by the recipient for expenses directly related to administration of the grant.”
A grant winner may spend up to 5 percent on running the grant. No more than that.
Paperwork and staff time cost money. This caps that share. The rest must go to the work itself.
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