A bill to limit the amount of indirect costs that may be incurred in conducting federally sponsored university research and development to 50 percent of the modified total direct costs related to such research and development.

Requires Federal agencies making research and development (R&D) grants to, or contracts with, an institution of higher education to condition such grants or contracts on a requirement that the institution not use such funds to pay for indirect costs which exceed 50 percent of the modified total direct costs incurred for R&D.

Defines: (1) "indirect costs" as administrative costs and the costs of library and student services, building and equipment, and operations and maintenance; and (2) "modified total direct costs" as the costs of salaries and wages, fringe benefits, materials, supplies, services, travel, and the awarding of subgrants or subcontracts of up to $25,000.