(a) Matching provisions for the Centers and Subcenter. The Centers and the Subcenter are not required to match Federal funds.

(b) Matching provisions for subawards. For subawards made by the Centers or Subcenter through the competitive grants process, not less than 20 percent of the cost of an activity must be matched with funds, including in-kind contributions, from a non-Federal source, by the subawardee.

(1) Exception for fundamental research. This matching requirement does not apply to fundamental research (as defined in § 3430.2).

(2) Special matching provisions for applied research. With prior approval by the NIFA authorized departmental officer (ADO), the Center or Subcenter may reduce or eliminate the matching requirement for applied research (as defined in § 3430.2) if the Center or Subcenter determines that the reduction is necessary and appropriate pursuant to guidance issued by NIFA.