Can you explain the difference between an unrestricted indirect cost rate and a restricted indirect cost rate?

Restricted rates are established for use on programs that prohibit supplanting, where funding is intended to "supplement and not supplant" other State or local funding. The restricted rate filters out costs that would be incurred by the agency whether or not any particular grant program was in operation. The restricted rate is currently used for all State and federal grant programs flowing through SED, such as Title I. Unrestricted indirect cost rates are used with school food service programs and may also be used by local agencies on certain direct-funded federal programs.