No Subsidies for Wealthy Universities Act

This bill limits how much federal research grants can pay for “indirect costs” at colleges and universities. Indirect costs are the general overhead of doing research, like buildings, utilities, and administrative support. Schools with very large endowments would get tighter limits than other schools. For the biggest endowments (over $5 billion), no grant money could be used for indirect costs; for endowments between $2–$5 billion, indirect costs would be capped at 8%; all other schools would have a cap of 15% .

Each year, the National Center for Education Statistics must collect endowment data and list which schools fall into the over $5 billion and $2–$5 billion groups; the Office of Management and Budget must share those lists with agencies, Congress, and the public. The Government Accountability Office must report every year on how indirect cost money was used, including amounts spent on administrative staff and on staff with diversity, equity, and inclusion duties, and identify top-funded research fields, agencies, and schools. The changes start one year after the bill becomes law and apply to grants made on or after that date .

Key points

• Who is affected: Colleges and universities that receive federal research awards, and the federal agencies that fund them.
• What changes: Caps on indirect cost rates based on endowment size; required annual endowment reporting and public lists; yearly federal audits of how indirect funds are used and where research money goes.
• When: Takes effect one year after enactment, for awards made after that date.