Caps on federal research money for universities would depend on their wealth.
This bill would set new limits on how much federal money universities can use for indirect costs on research projects. Universities with large savings, called endowment funds, would face stricter caps, with the wealthiest getting no reimbursement for these costs. This aims to change how federal research dollars are spent at different institutions.
Today, federal agencies reimburse universities for indirect costs on research awards based on negotiated rates, without specific caps tied to the university's endowment size. This bill would change that by setting strict caps: 0 percent for universities with over $5,000,000,000 in endowment, 8 percent for those with $2,000,000,000 to $5,000,000,000, and 15 percent for all other universities. Universities would also be required to report their endowment information annually to the government.
HR 422 · 119th Congress · January 15, 2025 · AI Summary by gemini-2.5-flash · 5/10
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