[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.
                                 <all>