What is a no-cost extension?

A no-cost extension refers to the ability to extend the duration of a grant period without the provision of additional funding. This mechanism allows recipients to have more time to complete the project activities initially planned, without the need for extra government funds.

This can be particularly beneficial in situations where project delays arise due to unforeseen circumstances, such as staffing changes, natural disasters, or other obstacles that impede progress. By granting a no-cost extension, the funding agency acknowledges the need for flexibility and helps ensure that the grant objectives can still be met within a reasonable timeframe, enabling project completion without incurring further costs.

In contrast, other options like an extension with additional funding, reductions in project scope, or transferring funds between projects do not accurately define a no-cost extension, as they imply changes to the funding or the project's fundamental nature which are not part of the no-cost extension concept.