Federal Grant Accountability Act

Sponsor: Ben Cline (Republican-VA)January 15, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Science, Space, and Technology.

Caps how much universities can charge for overhead on federal research grants

This bill would cap the amount of money universities can charge for overhead costs on research funded by the federal government. This cap would match the average overhead rate charged by private companies for similar research.

What Would Change

Today, federal agencies set indirect cost rates for university research awards based on established guidelines, without a specific cap tied to private awards. If this bill passes, universities would face a new limit on these indirect costs, which would be capped at the average rate charged by private companies for similar research.

Key Provisions

Caps the total indirect costs universities can charge on federal research awards to the average rate of private research awards.
Requires the Office of Management and Budget to annually determine the average indirect cost rate for private research awards.
Requires the Comptroller General to study indirect cost rates for both federal and private research awards to universities.
Requires the Comptroller General to report its study findings and recommendations to Congress within one year.

View on Congress.gov

HR 420 · 119th Congress · January 15, 2025 · AI Summary by gemini-2.5-flash · 10/10

Federal Grant Accountability Act

What Would Change

Key Provisions

Lobbying Activity