Capping Federal Research Funds for Administrative Costs at Wealthy Universities.
This law establishes strict limits on the amount of federal research grant money universities can allocate to administrative expenses, known as indirect costs, based on the size of their endowment funds. The wealthiest institutions (with endowments over $5 billion) will be prohibited from using any federal research funds for these costs, aiming to maximize the money spent directly on scientific research. The law also mandates annual reporting on how these funds are spent on administrative staff compensation.
Key points
The wealthiest universities (with endowments over $5 billion) are prohibited from using federal research grants to cover indirect administrative costs (0% limit).
Institutions with endowments between $2 billion and $5 billion will have their indirect cost rate capped at 8% of the grant value.
All other institutions will have their indirect cost rate capped at 15% of the grant value.
An annual oversight report will track exactly how much federal research money is spent on administrative staff salaries, including those related to diversity, equity, and inclusion (DEI).
Expired
Citizen Poll