A no cost extension is a request to extend a study past the award dates of the project.  Agencies vary in their requirements for those extensions; some do not allow them at all.  Criteria for a no cost extension are:

• There must be unspent funds remaining for the no cost extension.
• The reason for the extension must be a scientific one; having funds remaining at the end of the grant when all other work is completed is not justification for an extension.
• Usually have to be submitted before the end of the grant period (commonly 1-3 months before the end of the period).

NIH Rules

Definition from NIH Grants Policy Statement:  Extension of Final Budget Period of a Previously Approved Project Period without Additional NIH Funds. The grantee may extend the final budget period of the previously approved project period one time for a period of up to 12 months beyond the original expiration date shown in the NGA if:

• no additional funds are required to be obligated by the NIH awarding office,
• the project’s originally approved scope will not change, and
• any one of the following applies:
  • Additional time beyond the established expiration date is required to ensure adequate completion of the originally approved project.
  • Continuity of NIH grant support is required while a competing continuation application is under review.
  • The extension is necessary to permit an orderly phase-out of a project that will not receive continued support.

The fact that funds remain at the expiration of the grant is not, in itself, sufficient justification for an extension without additional funds.

NIH Procedure for 1st Time Requests

No-cost extensions are submitted by the signing official (SO) of the institution (Director of Grants and Contracts). If the PI would like to request a no-cost extension, the PI should email the SO with their request- providing a brief explanation of the purpose of the extension, and verifying that all the above conditions as stated in the NIH Grants Policy Statement are met. The PI should also specify the length of time for the extension (3 mos, 6mos, or 12 mos). So long as the conditions are met and there are sufficient funds left in the grant to cover the outstanding work, the SO will proceed with submitting the extension. If there are insufficient funds left to complete the remaining work, the PI and Grants and Contracts Analyst must also prepare and submit a Cost Sharing Worksheet. 

NIH Procedure for 2nd and 3rd Time Requests

If a 2nd and 3rd no-cost extension is required, send an email to the Signing Official (the PreAward Manager or the Director of Grants and Contracts) including the following: 

Provide the following information:

1. Number of months for the NCE (1-12 months).
2. Amount of the Unobligated balance.
3. Amount of effort the PI will maintain during this period.
4. IRB approval date (if applicable) (attach a copy).
5. IACUC Approval date (if applicable) (attach a copy).

Prepare the following documents:

• Progress Report for the past year.
• Budget Document (spending plan, detailed budget).
• Justification letter.
• A letter to the Program Officer and the Grants Specialist assigned to the grant at NIH is to be prepared.
• Include the expected amount remaining at the end of the budget period.
• Indicate how many months you wish for the NCE (between 1 and 12).
• Include the grant title and grant number in the letter.
• The PI must address key programmatic and scientific points as to why an additional no cost extension is required.
• The letter must be countersigned by the Signing Official (Director of Contracts and Grants) as well as the Principal Investigator.