Only the right has signed this so far (Bill Ranking)
H.R. 422 · 119th Congress (2025-2026)
4 members · Left 0 · Center 0 · Right 4 (Bill Ranking)
| Sponsor | Rep. Cline, Ben (R-VA) (Introduced 01/15/2025) |
|---|---|
| Sponsor Voting Record | Right · DW-NOMINATE +0.71 · measured from every roll-call vote this member has cast (voteview.com) (Sponsor Ranking) |
| Support |
LLLCLRR support across the spectrum: 4 members signed on (Bill Ranking) this bill: sponsor + current cosponsors, each once |
| Committees | House - Education and Workforce Committee; House - Science, Space, and Technology Committee |
| Latest Action | 01/15/2025 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. |
| Roll Call Votes | There have been no roll call votes |
| Source | view on congress.gov → |
Introduced in House (01/15/2025)
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:
The Government Accountability Office must annually report to Congress on indirect cost reimbursement on federal research awards for IHEs.
119 HR 422 IH: No Subsidies for Wealthy Universities Act U.S. House of Representatives 2025-01-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I119th CONGRESS1st SessionH. R. 422IN THE HOUSE OF REPRESENTATIVESJanuary 15, 2025Mr. Cline (for himself, Mr. Clyde, and Mr. Harris of Maryland) introduced the following bill; which 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 concernedA BILLTo establish Federal research award reimbursement limits for indirect costs for institutions of higher education, and for other purposes.1.Short titleThis Act may be cited as the No Subsidies for Wealthy Universities Act.2.DefinitionsIn this Act:(1)AgencyThe term agency has the meaning given the term in section 551 of title 5, United States Code.(2)Direct costThe term direct cost has the meaning given the term in subpart E of part 200 of title 2, Code of Federal Regulations (or any successor regulation).(3)Endowment fundThe term endowment fund has the meaning given the term in section 312(c) of the Higher Education Act of 1965 (20 U.S.C. 1058(c)).(4)Federal research awardThe term Federal research award means support provided to an individual or entity by an agency to carry out research activities, which may include support in the form of a grant, contract, cooperative agreement, or other transaction.(5)Indirect costThe term indirect cost has the meaning given the term in subpart E of part 200 of title 2, Code of Federal Regulations (or any successor regulation).(6)Indirect cost rateThe term indirect cost rate, with respect to a project supported under a Federal research award, means the ratio, expressed as a percentage, of the indirect costs of the project to the direct costs of the project, as determined in accordance with subpart E of part 200 of title 2, Code of Federal Regulations (or any successor regulation).(7)Institution of higher educationThe term institution of higher education has the meaning given such term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
3.Capping indirect costs allowable under Federal research awards(a)Endowment calculations(1)Collection by NCESNot later than September 30 of each year, the Commissioner for Education Statistics shall—(A)collect information regarding the value of the endowment funds, as of September 30 of the preceding fiscal year, of each institution of higher education that has entered into a program participation agreement with the Secretary of Education under section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)); (B)use the data described in subparagraph (A) to identify—(i)each such institution of higher education with endowment funds that, in total, are valued at more than $5,000,000,000, as of September 30 of the preceding fiscal year; and (ii)each such institution of higher education with endowments funds that, in total, are valued at more than $2,000,000,000 but not more than $5,000,000,000, as of September 30 of the preceding fiscal year; and(C)make lists of the institutions identified under each of clauses (i) and (ii) of subparagraph (B) and submit such lists to the Director of the Office of Management and Budget.(2)Distribution by OMBNot later than September 30 of each year, the Director of the Office of Management and Budget shall make the lists described in paragraph (1)(C) available to—(A)the head of each agency;(B)Congress; and(C)the public.(b)Limits on indirect cost reimbursements for institutions with significant endowment funds(1)Prohibition for institutions with highest endowment fundsNotwithstanding any other provision of law, the head of an agency making a Federal research award for a fiscal year to an institution of higher education identified under subsection (a)(1)(B)(i) for the preceding fiscal year shall not allow any Federal research award funds to be used for indirect costs.(2)Indirect cost rate limit for institutions with substantial endowment fundsNotwithstanding any other provision of law, the head of an agency making a Federal research award for a fiscal year to an institution of higher education identified under subsection (a)(1)(B)(ii) for the preceding fiscal year shall establish an indirect cost rate for the Federal research award that is not more than 8 percent.(c)Limits on indirect cost reimbursements rates for other institutionsNotwithstanding any other provision of law, the head of an agency making a Federal research award for a fiscal year to an institution of higher education not identified under clause (i) or (ii) of subsection (a)(1)(B) for the preceding fiscal year shall establish an indirect cost rate for the Federal research award that is not more than 15 percent.(d)Program participation agreement requirementSection 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the end the following:(30)The institution will annually provide the Commissioner for Education Statistics with the endowment fund information needed by the Commissioner to carry out section 3(a)(1) of the No Subsidies for Wealthy Universities Act..4.Improving oversight of indirect cost reimbursementThe Comptroller General of the United States shall prepare and submit to Congress an annual report regarding the indirect costs reimbursed under Federal research awards made to institutions of higher education for the preceding fiscal year. The report shall—(1)determine, to the extent practicable, for such fiscal year—(A)the amount of reimbursed indirect costs for Federal research awards that were used for administrative staff compensation at institutions of higher education; and(B)the amount of reimbursed indirect costs for Federal research awards that were used for compensation for administrative staff members with responsibilities related to diversity, equity, and inclusion;(2)identify the research fields that receive the highest levels of funding from Federal research awards made to institutions of higher education; and (3)identify—(A)the agencies that awarded the highest amount of Federal research award funds to institutions of higher education; and(B)the institutions of higher education that received Federal research awards from such agencies.5.Effective date; applicabilityThis Act shall take effect on the date that is 1 year after the date of enactment on this Act and shall apply with respect to Federal research awards made on or after such date.
The bill's own words, from our database (synced from the GPO BILLS XML); paragraph breaks added at the bill's section boundaries, nothing else changed.
| Date | Chamber | All Actions |
|---|---|---|
| 01/15/2025 | Library of Congress | Introduced in House |
| 01/15/2025 | Library of Congress | Introduced in House |
| 01/15/2025 | House floor actions | 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. |
| 01/15/2025 | House floor actions | 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. |
| Title Type | Title |
|---|---|
| Display Title | No Subsidies for Wealthy Universities Act |
| Official Title as Introduced | To establish Federal research award reimbursement limits for indirect costs for institutions of higher education, and for other purposes. |
| Short Title(s) as Introduced | No Subsidies for Wealthy Universities Act |
There are no amendments to this bill.
* = Original cosponsor
| Committee | Activity |
|---|---|
| House - Education and Workforce Committee | 01/15/2025 Referred To |
| House - Science, Space, and Technology Committee | 01/15/2025 Referred To |
No related bill information was received for H.R. 422.
Policy Area: Education
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