This bill would limit how much colleges and universities can claim for indirect costs on federal research awards. It says the total indirect costs allowable on a Federal research award to an institution of higher education may not be more than the total indirect costs allowable on private research awards, using the average indirect cost rate for private awards. The Office of Management and Budget (OMB) must determine the average private indirect cost rate at least once each year. The bill uses the rules in 2 CFR subpart E (or successor regulations) to define indirect costs. The Comptroller General must study indirect cost rates for Federal and private research awards and report to Congress within one year. That study must cover average rates, the research fields receiving the most funding, how much indirect cost money is used for administrative staff (including staff with DEI responsibilities), and how agencies set and apply indirect cost rate guidance. The bill also defines key terms such as Federal research award, institution of higher education, and private research award.
If you work at or attend an institution of higher education that receives research funding, the bill would require that federal reimbursements for indirect costs be capped relative to the average indirect cost rate for private research awards determined by OMB. OMB will publish that average rate annually. The Comptroller General (GAO) will study how indirect cost rates compare between federal and private awards and how those funds are used. No publicly available information explains how this change would affect any specific institution or award amounts.
No publicly available information about estimated costs, savings, or budgetary effects is included in the bill text or metadata.
No publicly available information about supporters' stated views is included in the bill text or metadata.
No publicly available information about opponents' stated views is included in the bill text or metadata.