Us Congress 2025-2026 Regular Session

Us Congress House Bill HB422

Introduced
1/15/25  

Caption

No Subsidies for Wealthy Universities ActThis bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs) with endowments above specified thresholds. (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)Specifically, the National Center for Education Statistics (NCES) must annually collect information regarding the endowments of each IHE that has entered into a program participation agreement with the Department of Education.With this collected information, NCES must identify and make lists of (1) each IHE with an endowment of more than $5 billion, and (2) each IHE with an endowment of more than $2 billion (but not more than $5 billion). NCES must submit these lists to the Office of Management and Budget, which must then distribute the lists to federal agencies, Congress, and the public.The bill establishes the following limits on the indirect costs allowable under federal research awards:for an IHE with an endowment of more than $5 billion, the IHE is prohibited from using these awards for indirect costs;for an IHE with an endowment of more than $2 billion (but not more than $5 billion), the IHE is limited to an indirect cost rate of 8%; andfor all other IHEs, an indirect cost rate of 15%.The Government Accountability Office must annually report to Congress on indirect cost reimbursement on federal research awards for IHEs.

Impact

The proposed legislation is designed to increase transparency and accountability regarding how federal funds are utilized in higher education, particularly in terms of administrative expenditures. By imposing these limits, the bill intends to ensure that federal research funding is directly supporting research activities rather than being absorbed by overhead costs. This could significantly affect larger institutions that may rely heavily on indirect costs to support their operations, creating a shift in how these universities approach funding and budgeting for research projects.

Summary

House Bill 422, titled 'No Subsidies for Wealthy Universities Act,' seeks to establish limits on the reimbursement of indirect costs associated with federal research awards for institutions of higher education. Specifically, the bill aims to curb the use of federal funds for indirect costs at institutions with substantial endowment funds, defined as those having totals exceeding $5 billion and between $2 billion and $5 billion. For the latter, the bill allows an indirect cost rate not to exceed 8 percent, while those with higher endowments would not be permitted to use any federal funds for such costs.

Contention

There are notable points of contention surrounding HB 422, particularly regarding perceptions of equity in funding among different types of institutions. Critics argue that limiting indirect costs may disproportionately impact universities that serve larger student populations and require more substantial administrative support. Supporters, however, assert that this measure is necessary to prevent wealthier institutions from using federal research awards to subsidize administrative overhead, which they see as a misuse of taxpayer funds. The debate centers on balancing the need for efficient fund allocation without undermining the support infrastructure essential for diverse educational institutions.

Congress_id

119-HR-422

Policy_area

Education

Introduced_date

2025-01-15

Companion Bills

No companion bills found.

Previously Filed As

US HB435

Protecting Life on College Campus Act of 2023 This bill prohibits the award of federal funds to an institution of higher education (IHE) that hosts or is affiliated with a school-based service site that provides abortion drugs or abortions to its students or to employees of the IHE or the site. An IHE that hosts or is affiliated with a site must, in order to remain eligible for federal funds, annually certify that the site does not provide abortion drugs or abortions to students or employees.

US HB10374

To require the Director of the Office of Science and Technology Policy to develop a consistent set of policy guidelines for Federal research agencies to address mental health and mentoring of graduate researchers and postdoctoral researchers, and for other purposes.

US SB16

Protecting Life on College Campus Act of 2023 This bill prohibits the award of federal funds to an institution of higher education (IHE) that hosts or is affiliated with a school-based service site that provides abortion drugs or abortions to its students or to employees of the IHE or the site. An IHE that hosts or is affiliated with a site must, in order to remain eligible for federal funds, annually certify that the site does not provide abortion drugs or abortions to students or employees.

US HB262

All Economic Regulations are Transparent Act of 2023 or the ALERT Act of 2023 This bill establishes various reporting requirements with respect to federal agency rulemaking. Specifically, each agency must submit a monthly report to the Office of Information and Regulatory Affairs (OIRA) for each rule the agency expects to propose or finalize during the following year, including information about the objectives and legal basis for the rule as well as whether the rule is subject to periodic review based on its significant economic impact. Additionally, each agency must submit a monthly report for any rule expected to be finalized during the following year for which the agency has issued a general notice of proposed rulemaking, including an approximate schedule for completing action on the rule and an estimate of its cost and economic effects. OIRA must publish this information online and, subject to certain exceptions, a rule may not take effect until the information has been published for at least six months. The bill also requires OIRA to annually publish in the Federal Register specified information it receives from agencies under this bill, including a list of each rule an agency has proposed and the total cost of all rules proposed or finalized. OIRA must further publish online (1) any analysis of the costs or benefits of rules that were proposed or finalized during the previous year, and (2) a list of rules that were subjected to various forms of review during the previous year.

US HB480

Wildfire Recovery Act This bill makes changes with respect to the federal cost share for Fire Management Assistance Grants and provides that the federal share shall be not less than 75% of the eligible cost. Specifically, the bill directs the Federal Emergency Management Agency (FEMA) to conduct and complete a rulemaking to provide criteria for the circumstances under which FEMA may recommend that the President increase the federal cost share. Such criteria shall include a threshold metric that assesses the financial impact to a state or local government from responding to a fire for which fire management assistance is being provided.

US HB340

Hamas International Financing Prevention Act This bill imposes sanctions targeting Hamas, the Palestinian Islamic Jihad, and any affiliate or successor groups. The President must periodically report to Congress a list of each foreign person (individual or entity) that knowingly provides significant support or services to or is involved in a significant transaction with a senior member or supporter of the targeted groups. The President must impose two or more sanctions on the named persons. Specifically, the person may be (1) denied credit and services from the Export-Import Bank, (2) barred from purchasing certain controlled defense articles, (3) denied exports of items on the U.S. Munitions List, (4) prevented from receiving exports of certain goods or technology controlled for national security reasons, (5) prohibited from receiving financing of more than $10 million from any U.S. financial institution, or (6) subject to property-blocking restrictions. The President must periodically report to Congress a list of foreign governments that have repeatedly provided material support for the targeted groups' terrorist activities. The President shall bar these governments from receiving for one year (1) U.S. assistance, or (2) exports of controlled munitions. The Department of the Treasury must instruct U.S. leadership of international financial institutions to oppose providing assistance to an identified government for one year. The bill provides for certain exceptions and waivers, such as for transactions that would serve U.S. national interests. The President must report to Congress and periodically provide briefings on other specified topics related to the targeted groups, such as where these groups secure financing and surveillance equipment.

US HB277

Regulations from the Executive in Need of Scrutiny Act of 2023 This bill revises provisions relating to congressional review of agency rulemaking. Specifically, the bill establishes a congressional approval process for a major rule. A major rule may only take effect if Congress approves of the rule. A major rule is a rule that has resulted in or is likely to result in (1) an annual effect on the economy of $100 million or more; (2) a major increase in costs or prices for consumers, individual industries, government agencies, or geographic regions; or (3) significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. The bill generally preserves the current congressional review process for a nonmajor rule.

US HB6256

To require that the Chief Information Officer of the Bureau of Information Resources submit an annual report that lists all the information technology procurement awards and contracts that were awarded over $10,000,000.

US HB302

Energy Cybersecurity University Leadership Act of 2023 This bill requires the Department of Energy (DOE) to establish an Energy Cybersecurity University Leadership Program. Under the program, DOE must provide financial assistance to graduate students and postdoctoral researchers pursuing a course of study that integrates cybersecurity competencies within disciplines associated with energy infrastructure needs. In addition, DOE must provide the students and researchers supported under the program with research and training experiences at its National Laboratories and utilities.

US HB448

Putting Investors First Act of 2023 This bill requires a proxy advisory firm to register with the Securities and Exchange Commission and prohibits an unregistered proxy advisory firm from using interstate commerce to provide proxy-voting advice, research, analysis, or recommendations to any client. With respect to these firms, the bill (1) establishes procedures for both registration and termination of registration; (2) requires each firm to employ an ombudsman, designate a compliance officer, and publicly disclose conflicts of interest; (3) allows issuers to assess and comment on proxy voting recommendations; and (4) prohibits unfair, coercive, or abusive practices. The bill establishes a private right of action against a proxy advisory firm that endorses an approved proposal that is not supported by the issuer and is found to be illegal.

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Federal Grant Accountability ActThis bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs). (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)Specifically, the total amount of indirect costs allowable under a federal research award may not exceed the total amount of indirect costs allowable under private research awards. The Office of Management and Budget must determine the average indirect cost rate applicable to private research awards.Additionally, the Government Accountability Office must study and report on (1) the indirect cost rates allowable under federal research awards to IHEs, including awards made by the National Institutes of Health, the National Science Foundation, and other such organizations; and (2) the indirect cost rates allowable under private research awards to IHEs.

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