I 

118TH CONGRESS 

1ST SESSION H. R. 6847 

To impose limitations on the amount of indirect costs allowable under Federal 

research awards to institutions of higher education, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 19, 2023 

Mr. CLINE introduced the following bill; which was referred to the Committee 

on Science, Space, and Technology 

A BILL 

To impose limitations on the amount of indirect costs allowable under Federal research awards to institutions of 

higher education, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Grant Ac5 countability Act’’. 

6 SEC. 2. LIMITATIONS ON INDIRECT COSTS ALLOWABLE 

7 UNDER FEDERAL RESEARCH AWARDS. 

8 (a) LIMIT ON INDIRECT COSTS.—The total amount 

9 of indirect costs allowable under a Federal research award 

10 to an institution of higher education may not exceed the 


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1 total amount of indirect costs allowable under private re2 search awards, as calculated using the average indirect 

3 cost rate applicable to such awards. 

4 (b) PRIVATE RESEARCH AWARD RATE.—The Direc5 tor of the Office of Management and Budget shall deter6 mine, not less frequently than annually, the average indi7 rect cost rate applicable to private research awards for 

8 purposes of subsection (a). 

9 (c) DETERMINATION OF INDIRECT COSTS.—In deter10 mining ‘‘indirect costs’’ for purposes of this subsection, 

11 the guidelines under subpart E of title 2, Code of Federal 

12 Regulations (or successor regulations) for determining in13 direct costs charged to Federal awards shall be used. 

14 SEC. 3. COMPTROLLER GENERAL STUDY ON INDIRECT 

15 COSTS UNDER FEDERAL AND PRIVATE RE16 SEARCH AWARDS. 

17 (a) STUDY.—The Comptroller General of the United 

18 States shall conduct a study on— 

19 (1) the indirect cost rates allowable under Fed20 eral research awards to institutions of higher edu21 cation, including awards made by the National Insti22 tutes of Health, the National Science Foundation, 

23 and other such organizations; and 


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1 (2) the indirect cost rates allowable under pri2 vate research awards to institutions of higher edu3 cation. 

4 (b) ELEMENTS.—The study under subsection (a) 

5 shall include an assessment of— 

6 (1) the average indirect cost rates allowable 

7 under Federal and private research awards, respec8 tively; 

9 (2) the research fields that receive the highest 

10 levels of funding from Federal and private research 

11 awards, respectively; 

12 (3) the average amount indirect costs allowable 

13 under Federal and private research awards that are 

14 used to fund administrative staff, including adminis15 trative staff with responsibilities relating to diver16 sity, equity, and inclusion; and 

17 (4) the measures implemented by organizations 

18 that make Federal research awards, including the 

19 National Institutes of Health and the National 

20 Science Foundation, to ensure such organizations 

21 are implementing indirect cost rate-setting guidance 

22 in a consistent manner. 

23 (c) REPORT.—Not later than 1 year after the date 

24 of the enactment of this Act, the Comptroller General shall 

25 submit to Congress a report on the results of the study 


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1 conducted under subsection (a). The report shall include 

2 such recommendations as the Comptroller General con3 siders appropriate to improve the system for determining 

4 indirect cost rates and tracking reimbursements for indi5 rect costs under Federal research awards. 

6 SEC. 4. DEFINITIONS. 

7 In this Act: 

8 (1) INSTITUTION OF HIGHER EDUCATION.—The 

9 term ‘‘institution of higher education’’ has the 

10 meaning given that term in section 102 of the High11 er Education Act of 1965 (20 U.S.C. 1002). 

12 (2) FEDERAL RESEARCH AWARD.—The term 

13 ‘‘Federal research award’’ means support provided 

14 to an individual or entity by a department or agency 

15 of the Federal Government to carry out research ac16 tivities, which may include support in the form of a 

17 grant, contract, cooperative agreement, or other 

18 such transaction. 

19 (3) PRIVATE RESEARCH AWARD.—The term 

20 ‘‘private research award’’ means an award made by 

21 a private sector organization to support research ac22 tivities at an institution of higher education. 

Æ 


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