Federal Grant Record Retention: The Three-Year Rule and Its Exceptions (2 CFR 200.334)
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How we wrote this: A plain-English summary of 2 CFR 200.334 and related Part 200 sections, checked October 29, 2026. General information, not legal or audit advice; your award terms and agency guidance control.
The basic rule
Under 2 CFR 200.334, recipients and subrecipients must keep all federal award records for three years from the date they submit the final financial report; see SF-425 and closeout. For awards renewed quarterly or annually, count three years from each quarterly or annual financial report.
Records include financial records, supporting documentation and statistical records. Agencies and pass-through entities may not add other retention requirements beyond the exceptions below.
When you keep them longer (200.334(a)–(f))
- (a) Litigation, claims or audit findings started before the three years end: keep records until they're resolved and final action is taken.
- (b) Written notice from the federal agency, pass-through entity or cognizant agency to extend.
- (c) Property and equipment bought with federal funds: three years after final disposition.
- (e) Program income earned after the period of performance, when you must report it: three years from the end of the fiscal year it was earned.
- (f) Indirect cost rate proposals and cost allocation plans: if submitted for negotiation, three years from submission.
(d) The rule doesn't apply to records transferred to or kept by the federal agency.
Why it matters
- Records must stay available even when you're below the Single Audit threshold (200.501(e)); see Single Audit.
- Costs must be adequately documented to be allowable (200.403(g)); see allowable costs.
- State and local records laws may require longer retention. Follow whichever is longer.
Practical setup
- Index files by award number (FAIN) and Assistance Listing number.
- Record each award's final SF-425 date and compute its destruction date.
- Put a legal hold process in place for audits and claims.
Related: match documentation, SAM.gov registration.