Before you buy

The rules every federally funded purchase follows

Whatever the program, these checks come up every time. Getting them right up front keeps a purchase from being questioned in a monitoring visit or audit.

This guide is general information, last reviewed October 2026, not legal or grant advice. Your state education agency and your district’s federal programs director decide what’s allowable, and rules vary by state. We’re a software company, and we sell the apps this guide mentions.

1. It’s allowable for that program

The cost has to serve the program’s purpose and be an allowed use under its law and your state’s guidance. Allowable is only the first test.

2. It’s reasonable, necessary and allocable

Under the Uniform Guidance (2 CFR 200), a cost must be what a prudent person would pay, needed for the program, and charged in proportion to the benefit the program gets. Software used across the district for many purposes may need to be split between funds.

3. It supplements, not supplants

Federal funds add to state and local spending; they can’t replace it. A cost you already pay for with local funds, or that state law requires, is usually a problem to move to a federal program.

4. It’s in your plan and budget

Tie the purchase to your needs assessment and the program’s plan in your consolidated application, and add it to the approved budget. If it’s new mid-year, you may need a budget amendment approved by your state first.

5. It’s bought the right way

Follow your district’s written procurement procedures and the Uniform Guidance standards (2 CFR 200.318 to 200.320), including your micro-purchase and small-purchase thresholds, competition and cost or price analysis. Purchasing cooperatives can help.

6. It’s documented

Keep the quote, the purchase order, the invoice, proof of payment, and evidence the tool was used for the program’s purpose (like the positions filled or the release days covered).