Us Congress 2025-2026 Regular Session

Us Congress House Bill HB420

Introduced

1/15/25

Refer

1/15/25

Caption

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.

Impact

If enacted, HB 420 will have substantial implications on existing financial regulations governing federal research awards. Institutions of higher education will need to reassess their indirect cost accounting practices to comply with the new limitations. The bill mandates that the Director of the Office of Management and Budget will determine the average indirect cost rate applied to private research awards, which will serve as the benchmark for federal awards. This alignment could lead to reduced indirect cost reimbursements for some institutions, particularly those that charge rates significantly higher than the newly established limits.

Summary

House Bill 420, titled the 'Federal Grant Accountability Act', seeks to impose limitations on the amount of indirect costs that institutions of higher education can charge under federal research awards. The intent behind the bill is to create a more standardized approach to funding that parallels rates used in private research awards. By capping indirect costs to the average rate of private research awards, the bill aims to ensure accountability and transparency in the use of federal research funds allocated to educational institutions. This measure brings important changes to funding mechanisms affecting higher education institutions and researchers that depend heavily on federal grants.

Contention

Debate around HB 420 may arise from stakeholders in the higher education sector who might view the legislation as overly restrictive. Critics may argue that imposing lower indirect cost caps could hamper the ability of universities to support essential administrative and operational functions tied to research initiatives, which may include funding for diversity, equity, and inclusion efforts. Furthermore, there may be concerns about whether these limitations could affect the competitiveness of institutions in securing federal research grants, potentially putting some universities at a disadvantage relative to others that could rely more heavily on private funding.

Congress_id

119-HR-420

Policy_area

Education

Introduced_date

2025-01-15

Companion Bills

No companion bills found.

Previously Filed As

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 HB102

Space Research Innovation Act This bill directs the National Aeronautics and Space Administration (NASA) to establish a university-affiliated research center to fund analyses and engineering support related to cis-lunar and deep-space missions and interplanetary research. Entities eligible to participate in the center include institutions of higher education, operators of federally funded research and development centers, and nonprofit research institutions.

US HB1085

REFINER Act Researching Efficient Federal Improvements for Necessary Energy Refining Act

US SB81

Viral Gain-of-Function Research Moratorium Act This bill prohibits the award of federal research grants to institutions of higher education or research institutes that conduct gain-of-function research. Gain-of-function research refers to any research that (1) could confer attributes to influenza, MERS, or SARS viruses such that the virus would have enhanced pathogenicity or transmissibility in an organism; or (2) involves methods that could enhance potential pandemic pathogens or related risky research with potentially dangerous pathogens.

US HB8433

Abolishing Woke Awards for Research and Development Act of 2024

US HB6177

No Taxpayer Funding for Researchers Who Prey on Children Act

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 SR794

A resolution designating September 25, 2024, as "National Ataxia Awareness Day", and raising awareness of ataxia, ataxia research, and the search for a cure.

US HB10297

Thyroid Disease CARE Act of 2024 Thyroid Disease Coverage, Awareness, Research, and Education Act of 2024

US HB7196

Federal Parity for CASH Research Act Federal Parity for Communities with Above Average Seasonal Homeownership Research Act

Similar Bills

US HB6847

Federal Grant Accountability Act

CA SJR4

Research and education: federal funding cuts: the National Institutes of Health and postsecondary educational institutions.

US HB422

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.