No Subsidies for Wealthy Universities Act

Hozzl · 2025-02-13T21:49:41Z

Explore the details of House Bill 422 No Subsidies for Wealthy Universities Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Education. Stay informed on legislative developments.

2/13/2025, 9:49 PM

Summary of Bill HR 422

Bill 119 HR 422, also known as the "Federal Research Award Reimbursement Limits for Indirect Costs for Institutions of Higher Education Act," aims to set limits on the amount of indirect costs that institutions of higher education can receive as part of federal research awards. Indirect costs are expenses that are not directly attributable to a specific research project, such as administrative costs and overhead.

The bill seeks to address concerns about the rising costs of research at universities and the impact that excessive indirect costs can have on the ability of researchers to conduct important studies. By setting limits on the amount of indirect costs that can be reimbursed through federal research awards, the bill aims to ensure that taxpayer dollars are being used efficiently and effectively.

In addition to establishing reimbursement limits for indirect costs, the bill also includes provisions aimed at increasing transparency and accountability in the use of federal research funds. This includes requirements for institutions to report on how indirect costs are being used and to provide justification for any costs that exceed the established limits. Overall, Bill 119 HR 422 is intended to promote responsible stewardship of federal research funds and to ensure that institutions of higher education are using taxpayer dollars in a way that maximizes the impact of research efforts.

Congressional Summary of HR 422

No Subsidies for Wealthy Universities Act

This bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs) with endowments above specified thresholds. (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)

Specifically, the National Center for Education Statistics (NCES) must annually collect information regarding the endowments of each IHE that has entered into a program participation agreement with the Department of Education.

With this collected information, NCES must identify and make lists of (1) each IHE with an endowment of more than $5 billion, and (2) each IHE with an endowment of more than $2 billion (but not more than $5 billion). NCES must submit these lists to the Office of Management and Budget, which must then distribute the lists to federal agencies, Congress, and the public.

The bill establishes the following limits on the indirect costs allowable under federal research awards:

for an IHE with an endowment of more than $5 billion, the IHE is prohibited from using these awards for indirect costs;
for an IHE with an endowment of more than $2 billion (but not more than $5 billion), the IHE is limited to an indirect cost rate of 8%; and
for all other IHEs, an indirect cost rate of 15%.

The Government Accountability Office must annually report to Congress on indirect cost reimbursement on federal research awards for IHEs.

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Current Status of Bill HR 422

Bill HR 422 is currently in the status of Bill Introduced since January 15, 2025. Bill HR 422 was introduced during Congress 119 and was introduced to the House on January 15, 2025. Bill HR 422's most recent activity was Referred to the Committee on Science, Space, and Technology, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. as of January 15, 2025

Bipartisan Support of Bill HR 422

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 422

Primary Policy Focus

Education

Alternate Title(s) of Bill HR 422

To establish Federal research award reimbursement limits for indirect costs for institutions of higher education, and for other purposes.To establish Federal research award reimbursement limits for indirect costs for institutions of higher education, and for other purposes.

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Comments

Sponsors and Cosponsors of HR 422

Andy Harris

Maryland(Republican)

Keith Self

Texas(Republican)

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