(a) Allowable costs. Except as provided under paragraph (b) of this section, a grant awarded under this part may be used to pay all or part of the cost of establishing, strengthening, or operating a comprehensive or undergraduate Center including, but not limited to, the cost of—

(1) Faculty and staff salaries and travel;

(2) Library acquisitions;

(3) Teaching and research materials;

(4) Curriculum planning and development;

(5) Bringing visiting scholars and faculty to the Center to teach, conduct research, or participate in conferences or workshops;

(6) Training and improvement of staff;

(7) Projects conducted in cooperation with other centers addressing themes of world, regional, cross-regional, international, or global importance; and

(8) Summer institutes in the United States or abroad designed to provide language and area training in the Center's field or topic.

(b) Limitations on allowable costs. The following are limitations on allowable costs:

(1) Equipment costs exceeding 10 percent of the grant are not allowable.

(2) Funds for undergraduate travel are allowable only in conjunction with a formal program of supervised study in the subject area on which the Center focuses.

(3) Grant funds may not be used to supplant funds normally used by applicants for purposes of this part.