H.R. 420

119th CONGRESS 1st Session

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 · Sponsor: Mr. Cline · Committee: Committee on Science, Space, and Technology

Table of contents

• H.R. 420
  • SEC. 1. Short title
  • SEC. 2. Limitations on indirect costs allowable under Federal research awards

SEC. 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 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—
      • 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
      • 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—
      • the average indirect cost rates allowable under Federal and private research awards, respectively;
      • the research fields that receive the highest levels of funding from Federal and private research awards, respectively;
      • 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
      • 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:
    • 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.
    • 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
    • The term private research award means an award made by a private sector organization to support research activities at an institution of higher education.