CONTRACT FUNDING AND INDIRECT COSTS.

SEC. 204. CONTRACT FUNDING AND INDIRECT COSTS. Section 106(a)(3) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5325(a)(3)) is amended— (1) in subparagraph (A)— (A) in clause (i), by striking “, and” and inserting “; and”; and (B) in clause (ii), by striking “expense related to the overhead incurred” and inserting “expense incurred by the governing body of the Indian Tribe or Tribal organization and any overhead expense incurred”; (2) by redesignating subparagraph (B) as subparagraph (C); and (3) by inserting after subparagraph (A) the following: “(B) In calculating the reimbursement rate for expenses described in subparagraph (A)(ii), not less than 50 percent of the expenses described in subparagraph (A)(ii) that are incurred by the governing body of an Indian Tribe or Tribal organization relating to a Federal program, function, service, or activity carried out pursuant to the contract shall be considered to be reasonable and allowable. ” .