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Us Congress House Bill HB422

Us Congress 2025-2026 Regular Session

Us Congress House Bill HB422 Compare Versions

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11 I
22 119THCONGRESS
33 1
44 STSESSION H. R. 422
55 To establish Federal research award reimbursement limits for indirect costs
66 for institutions of higher education, and for other purposes.
77 IN THE HOUSE OF REPRESENTATIVES
88 JANUARY15, 2025
99 Mr. C
1010 LINE(for himself, Mr. CLYDE, and Mr. HARRISof Maryland) introduced
1111 the following bill; which was referred to the Committee on Science, Space,
1212 and Technology, and in addition to the Committee on Education and
1313 Workforce, for a period to be subsequently determined by the Speaker,
1414 in each case for consideration of such provisions as fall within the juris-
1515 diction of the committee concerned
1616 A BILL
1717 To establish Federal research award reimbursement limits
1818 for indirect costs for institutions of higher education,
1919 and for other purposes.
2020 Be it enacted by the Senate and House of Representa-1
2121 tives of the United States of America in Congress assembled, 2
2222 SECTION 1. SHORT TITLE. 3
2323 This Act may be cited as the ‘‘No Subsidies for 4
2424 Wealthy Universities Act’’. 5
2525 SEC. 2. DEFINITIONS. 6
2626 In this Act: 7
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3030 (1) AGENCY.—The term ‘‘agency’’ has the 1
3131 meaning given the term in section 551 of title 5, 2
3232 United States Code. 3
3333 (2) D
3434 IRECT COST.—The term ‘‘direct cost’’ has 4
3535 the meaning given the term in subpart E of part 5
3636 200 of title 2, Code of Federal Regulations (or any 6
3737 successor regulation). 7
3838 (3) E
3939 NDOWMENT FUND .—The term ‘‘endow-8
4040 ment fund’’ has the meaning given the term in sec-9
4141 tion 312(c) of the Higher Education Act of 1965 10
4242 (20 U.S.C. 1058(c)). 11
4343 (4) F
4444 EDERAL RESEARCH AWARD .—The term 12
4545 ‘‘Federal research award’’ means support provided 13
4646 to an individual or entity by an agency to carry out 14
4747 research activities, which may include support in the 15
4848 form of a grant, contract, cooperative agreement, or 16
4949 other transaction. 17
5050 (5) I
5151 NDIRECT COST.—The term ‘‘indirect cost’’ 18
5252 has the meaning given the term in subpart E of part 19
5353 200 of title 2, Code of Federal Regulations (or any 20
5454 successor regulation). 21
5555 (6) I
5656 NDIRECT COST RATE.—The term ‘‘indirect 22
5757 cost rate’’, with respect to a project supported under 23
5858 a Federal research award, means the ratio, ex-24
5959 pressed as a percentage, of the indirect costs of the 25
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6363 project to the direct costs of the project, as deter-1
6464 mined in accordance with subpart E of part 200 of 2
6565 title 2, Code of Federal Regulations (or any suc-3
6666 cessor regulation). 4
6767 (7) I
6868 NSTITUTION OF HIGHER EDUCATION .—The 5
6969 term ‘‘institution of higher education’’ has the 6
7070 meaning given such term in section 102 of the High-7
7171 er Education Act of 1965 (20 U.S.C. 1002). 8
7272 SEC. 3. CAPPING INDIRECT COSTS ALLOWABLE UNDER 9
7373 FEDERAL RESEARCH AWARDS. 10
7474 (a) E
7575 NDOWMENTCALCULATIONS.— 11
7676 (1) C
7777 OLLECTION BY NCES .—Not later than 12
7878 September 30 of each year, the Commissioner for 13
7979 Education Statistics shall— 14
8080 (A) collect information regarding the value 15
8181 of the endowment funds, as of September 30 of 16
8282 the preceding fiscal year, of each institution of 17
8383 higher education that has entered into a pro-18
8484 gram participation agreement with the Sec-19
8585 retary of Education under section 487(a) of the 20
8686 Higher Education Act of 1965 (20 U.S.C. 21
8787 1094(a)); 22
8888 (B) use the data described in subpara-23
8989 graph (A) to identify— 24
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9393 (i) each such institution of higher 1
9494 education with endowment funds that, in 2
9595 total, are valued at more than 3
9696 $5,000,000,000, as of September 30 of the 4
9797 preceding fiscal year; and 5
9898 (ii) each such institution of higher 6
9999 education with endowments funds that, in 7
100100 total, are valued at more than 8
101101 $2,000,000,000 but not more than 9
102102 $5,000,000,000, as of September 30 of the 10
103103 preceding fiscal year; and 11
104104 (C) make lists of the institutions identified 12
105105 under each of clauses (i) and (ii) of subpara-13
106106 graph (B) and submit such lists to the Director 14
107107 of the Office of Management and Budget. 15
108108 (2) D
109109 ISTRIBUTION BY OMB .—Not later than 16
110110 September 30 of each year, the Director of the Of-17
111111 fice of Management and Budget shall make the lists 18
112112 described in paragraph (1)(C) available to— 19
113113 (A) the head of each agency; 20
114114 (B) Congress; and 21
115115 (C) the public. 22
116116 (b) L
117117 IMITS ONINDIRECTCOSTREIMBURSEMENTS 23
118118 FORINSTITUTIONSWITHSIGNIFICANTENDOWMENT 24
119119 F
120120 UNDS.— 25
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124124 (1) PROHIBITION FOR INSTITUTIONS WITH 1
125125 HIGHEST ENDOWMENT FUNDS .—Notwithstanding 2
126126 any other provision of law, the head of an agency 3
127127 making a Federal research award for a fiscal year 4
128128 to an institution of higher education identified under 5
129129 subsection (a)(1)(B)(i) for the preceding fiscal year 6
130130 shall not allow any Federal research award funds to 7
131131 be used for indirect costs. 8
132132 (2) I
133133 NDIRECT COST RATE LIMIT FOR INSTITU -9
134134 TIONS WITH SUBSTANTIAL ENDOWMENT FUNDS .— 10
135135 Notwithstanding any other provision of law, the 11
136136 head of an agency making a Federal research award 12
137137 for a fiscal year to an institution of higher education 13
138138 identified under subsection (a)(1)(B)(ii) for the pre-14
139139 ceding fiscal year shall establish an indirect cost rate 15
140140 for the Federal research award that is not more 16
141141 than 8 percent. 17
142142 (c) L
143143 IMITS ONINDIRECTCOSTREIMBURSEMENTS 18
144144 R
145145 ATES FOROTHERINSTITUTIONS.—Notwithstanding any 19
146146 other provision of law, the head of an agency making a 20
147147 Federal research award for a fiscal year to an institution 21
148148 of higher education not identified under clause (i) or (ii) 22
149149 of subsection (a)(1)(B) for the preceding fiscal year shall 23
150150 establish an indirect cost rate for the Federal research 24
151151 award that is not more than 15 percent. 25
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155155 (d) PROGRAMPARTICIPATIONAGREEMENT RE-1
156156 QUIREMENT.—Section 487(a) of the Higher Education 2
157157 Act of 1965 (20 U.S.C. 1094(a)) is amended by adding 3
158158 at the end the following: 4
159159 ‘‘(30) The institution will annually provide the 5
160160 Commissioner for Education Statistics with the en-6
161161 dowment fund information needed by the Commis-7
162162 sioner to carry out section 3(a)(1) of the No Sub-8
163163 sidies for Wealthy Universities Act.’’. 9
164164 SEC. 4. IMPROVING OVERSIGHT OF INDIRECT COST REIM-10
165165 BURSEMENT. 11
166166 The Comptroller General of the United States shall 12
167167 prepare and submit to Congress an annual report regard-13
168168 ing the indirect costs reimbursed under Federal research 14
169169 awards made to institutions of higher education for the 15
170170 preceding fiscal year. The report shall— 16
171171 (1) determine, to the extent practicable, for 17
172172 such fiscal year— 18
173173 (A) the amount of reimbursed indirect 19
174174 costs for Federal research awards that were 20
175175 used for administrative staff compensation at 21
176176 institutions of higher education; and 22
177177 (B) the amount of reimbursed indirect 23
178178 costs for Federal research awards that were 24
179179 used for compensation for administrative staff 25
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183183 members with responsibilities related to diver-1
184184 sity, equity, and inclusion; 2
185185 (2) identify the research fields that receive the 3
186186 highest levels of funding from Federal research 4
187187 awards made to institutions of higher education; and 5
188188 (3) identify— 6
189189 (A) the agencies that awarded the highest 7
190190 amount of Federal research award funds to in-8
191191 stitutions of higher education; and 9
192192 (B) the institutions of higher education 10
193193 that received Federal research awards from 11
194194 such agencies. 12
195195 SEC. 5. EFFECTIVE DATE; APPLICABILITY. 13
196196 This Act shall take effect on the date that is 1 year 14
197197 after the date of enactment on this Act and shall apply 15
198198 with respect to Federal research awards made on or after 16
199199 such date. 17
200200 Æ
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