This document provides detailed guidance on preparing a budget estimate and narrative for federal grant proposals, emphasizing compliance with 2 CFR Part 200 cost principles. It outlines the necessary budget categories, including personnel, fringe benefits, travel, equipment, supplies, contractual services, construction, and miscellaneous costs, directing applicants to ensure all costs are allowable, allocable, and reasonable. Critical components of the budget narrative include justifications for personnel costs, descriptions of travel expenses, and breakdowns of equipment and supply expenditures. Applicants must detail any cost-sharing contributions and in-kind services that assist in project completion. The guidance underscores the importance of presenting clear and thorough budget narratives to facilitate administrative review and processing. Further, it delineates rules regarding indirect costs, recommending applicants use a current approved rate or a 10% de minimis rate if no agreement exists. Overall, it serves as a comprehensive framework to assist applicants in developing fiscally responsible and compliant budget proposals for project funding under federal assistance programs.