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Limiting Indirect Costs in Federal Research Grants for Universities

This act aims to cap the indirect costs universities can charge on federal research grants. The goal is to ensure taxpayer money is spent more efficiently on research, rather than administration. It also mandates a study of these costs to better understand how funds are utilized.
Key points
Universities cannot charge higher indirect costs on federal research grants than on private research awards.
The Office of Management and Budget will annually determine the average indirect cost rate for private research awards.
A study will compare indirect cost rates in federal and private research awards, including administrative staff funding.
A report with recommendations to improve the indirect cost system will be submitted to Congress.
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Additional Information
Print number: 118_HR_6847
Sponsor: Rep. Cline, Ben [R-VA-6]
Process start date: 2023-12-19