Federal Grant Accountability Act

To impose limitations on the amount of indirect costs allowable under Federal research awards to institutions of higher education, and for other purposes. 1. Short title This Act may be cited as the Federal Grant Accountability Act 2. Limitations on indirect costs allowable under Federal research awards (a) Limit on indirect costs The total amount of indirect costs allowable under a Federal research award to an institution of higher education may not exceed the total amount of indirect costs allowable under private research awards, as calculated using the average indirect cost rate applicable to such awards. (b) Private research award rate The Director of the Office of Management and Budget shall determine, not less frequently than annually, the average indirect cost rate applicable to private research awards for purposes of subsection (a). (c) Determination of indirect costs In determining indirect costs 3. Comptroller General study on indirect costs under Federal and private research awards (a) Study The Comptroller General of the United States shall conduct a study on— (1) the indirect cost rates allowable under Federal research awards to institutions of higher education, including awards made by the National Institutes of Health, the National Science Foundation, and other such organizations; and (2) the indirect cost rates allowable under private research awards to institutions of higher education. (b) Elements The study under subsection (a) shall include an assessment of— (1) the average indirect cost rates allowable under Federal and private research awards, respectively; (2) the research fields that receive the highest levels of funding from Federal and private research awards, respectively; (3) the average amount indirect costs allowable under Federal and private research awards that are used to fund administrative staff, including administrative staff with responsibilities relating to diversity, equity, and inclusion; and (4) the measures implemented by organizations that make Federal research awards, including the National Institutes of Health and the National Science Foundation, to ensure such organizations are implementing indirect cost rate-setting guidance in a consistent manner. (c) Report Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report on the results of the study conducted under subsection (a). The report shall include such recommendations as the Comptroller General considers appropriate to improve the system for determining indirect cost rates and tracking reimbursements for indirect costs under Federal research awards. 4. Definitions In this Act: (1) Institution of higher education The term institution of higher education 20 U.S.C. 1002 (2) Federal research award The term Federal research award (3) Private research award The term private research award

Summary: Federal Grant Accountability Act This bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs). Specifically, the total amount of indirect costs allowable under a federal research award may not exceed the total amount of indirect costs allowable under private research awards. The Office of Management and Budget must determine the average indirect cost rate applicable to private research awards. Additionally, the Government Accountability Office must study and report on (1) the indirect cost rates allowable under federal research awards to IHEs, including awards made by the National Institutes of Health, the National Science Foundation, and other such organizations; and (2) the indirect cost rates allowable under private research awards to IHEs.