AB880 May Reform Indirect Cost Recovery Rules for State Contractors and Grantees
Summary
AB880 addresses payment of claims and indirect cost recovery for state government grants and contracts; bill is actively moving through the legislature (amended August 2026). If enacted, it could change how contractors and consultants recover indirect/overhead costs on CA HSR and other state contracts.
Details
Firms with existing or pending CA HSR contracts should monitor this bill for changes to indirect cost rate allowability or payment timing that could affect contract profitability and proposal pricing.
Potential shift in how indirect costs are billed and reimbursed on state contracts, affecting contractor margins and contract structuring
California Legislature State grantees State contractors CAHSRA (implied)
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