Federal Grant Accountability Act
This 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.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 420 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 420
To impose limitations on the amount of indirect costs allowable under
Federal research awards to institutions of higher education, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 15, 2025
Mr. Cline introduced the following bill; which was referred to the
Committee on Science, Space, and Technology
_______________________________________________________________________
A BILL
To impose limitations on the amount of indirect costs allowable under
Federal research awards to institutions of higher education, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Grant Accountability Act''.
SEC. 2. LIMITATIONS ON INDIRECT COSTS ALLOWABLE UNDER FEDERAL RESEARCH
AWARDS.
(a) In General.--
(1) Limit on indirect costs.--The total amount of indirect
costs allowable under a Federal research award to an
institution of higher education may not exceed the total amount
of indirect costs allowable under private research awards, as
calculated using the average indirect cost rate applicable to
such awards.
(2) Private research award rate.--The Director of the
Office of Management and Budget shall determine, not less
frequently than annually, the average indirect cost rate
applicable to private research awards for purposes of paragraph
(1).
(3) Determination of indirect costs.--In determining
``indirect costs'' for purposes of this subsection, the
guidelines under subpart E of title 2, Code of Federal
Regulations (or successor regulations) for determining indirect
costs charged to Federal awards shall be used.
(b) Comptroller General Study on Indirect Costs Under Federal and
Private Research Awards.--
(1) Study.--The Comptroller General of the United States
shall conduct a study on--
(A) the indirect cost rates allowable under Federal
research awards to institutions of higher education,
including awards made by the National Institutes of
Health, the National Science Foundation, and other such
organizations; and
(B) the indirect cost rates allowable under private
research awards to institutions of higher education.
(2) Elements.--The study under paragraph (1) shall include
an assessment of--
(A) the average indirect cost rates allowable under
Federal and private research awards, respectively;
(B) the research fields that receive the highest
levels of funding from Federal and private research
awards, respectively;
(C) the average amount of indirect costs allowable
under Federal and private research awards that are used
to fund administrative staff, including administrative
staff with responsibilities relating to diversity,
equity, and inclusion; and
(D) the measures implemented by organizations that
make Federal research awards, including the National
Institutes of Health and the National Science
Foundation, to ensure such organizations are
implementing indirect cost rate-setting guidance in a
consistent manner.
(3) Report.--Not later than one year after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report on the results of the study conducted under
paragraph (1). The report shall include such recommendations as
the Comptroller General considers appropriate to improve the
system for determining indirect cost rates and tracking
reimbursements for indirect costs under Federal research
awards.
(c) Definitions.--In this section:
(1) Federal research award.--The term ``Federal research
award'' means support provided to an individual or entity by a
department or agency of the Federal Government to carry out
research activities, which may include support in the form of a
grant, contract, cooperative agreement, or other such
transaction.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given such
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(3) Private research award.--The term ``private research
award'' means an award made by a private sector organization to
support research activities at an institution of higher
education.
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Introduced in House
Introduced in House
Referred to the House Committee on Science, Space, and Technology.
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