Cost share projects with states and local governments must be funded with which method?

• A. Cash provided upfront
• B. Work in kind such as real estate, leases, etc.
• C. Loans
• D. Grants

Answer: (B)

The main idea here is that the non-federal share for collaborations with states and local governments can come from in-kind contributions—not cash. In-kind means providing assets or services that have real value for the project, such as real estate, leases, equipment, or personnel time, all valued at fair market value and properly documented. This kind of contribution counts toward the recipient’s share without needing additional cash outlay, and it shows a tangible commitment of resources already under the agency’s control. While cash matches are possible in some contexts, the required form in this scenario is in-kind support, which directly supports the project through assets or services rather than additional cash, loans, or new federal funding.