Capping Federal Research Overhead Payments to Wealthy Universities
This bill limits how much federal research grant money universities can use for administrative overhead (indirect costs). The wealthiest institutions, those with endowments over $5 billion, would be prohibited from charging any indirect costs. The goal is to ensure public funds are spent directly on research rather than subsidizing the general operating expenses of wealthy institutions, protecting taxpayer money.
Key points
The wealthiest universities (with endowments over $5 billion) will lose the ability to charge any administrative overhead fees on federal research grants.
Other universities will face caps on administrative costs: 8% or 15% of the grant value, depending on their endowment size.
Annual reporting will be required to detail exactly how reimbursed administrative costs are spent, including expenditures on diversity, equity, and inclusion (DEI) staff.
Expired
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