On January 12, 2021, the Agency for Healthcare Research and Quality (AHRQ) released NOT-HS-21-007 which gave notice of the HHS new salary cap effective January 3, 2021. The cap increases to $199,300.
The notice states:
The Further Consolidated Appropriations Act, 2021, Public Law 116-260 signed December 27, 2020 restricts the amount of direct salary which may be paid to an individual under an HHS grant, cooperative agreement, or applicable contract to a rate no greater than Executive Level II of the Federal Executive Pay Scale. Effective January 3, 2021, the Executive Level II salary level is $199,300.
For new awards from HHS, including NIH, the new salary cap is $199,300 starting January 3, 2021.
For awards already issued, "if adequate funds are available in the award, and if the FY2021 salary cap limitation is consistent with the institutional base salary, grantees may re-budget funds to accommodate the FY2021 salary cap effective January 3, 2021." However, "No additional funds will be provided for [these] grant awards."
For more information, read Notice NOT-HS-21-007: Salary Limitation on AHRQ FY2021 Grants, Cooperative Agreements, and Contracts
If you have any specific questions, please contact your pre-award office.