34 CFR §76.708

1. (a)If the authorizing statute for a program requires a State to make subgrants on the basis of a formula (see § 76.5), the State may not authorize an applicant for a subgrant to obligate funds until the later of the following two dates:
   1. (1)The date that the State may begin to obligate funds under § 76.703; or
   2. (2)The date that the applicant submits its application to the State in substantially approvable form.
2. (b)Reimbursement for obligations under paragraph (a) of this section is subject to final approval of the application.
3. (c)If the authorizing statute for a program gives the State discretion to select subgrantees, the State may not authorize an applicant for a subgrant to obligate funds until the subgrant is made. However, the State may approve pre-agreement costs in accordance with the cost principles in 2 CFR part 200, subpart E-Cost Principles.