I 
119TH CONGRESS 
1ST SESSION 
H. R. 422 
To establish Federal research award reimbursement limits for indirect costs 
for institutions of higher education, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 15, 2025 
Mr. 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 juris-
diction of the committee concerned 
A BILL 
To establish Federal research award reimbursement limits 
for indirect costs for institutions of higher education, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘No Subsidies for 
Wealthy Universities Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
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project to the direct costs of the project, as deter-
mined in accordance with subpart E of part 200 of 
title 2, Code of Federal Regulations (or any suc-
cessor regulation). 
(7) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given such term in section 102 of the High-
er Education Act of 1965 (20 U.S.C. 1002). 
SEC. 3. CAPPING INDIRECT COSTS ALLOWABLE UNDER 
FEDERAL RESEARCH AWARDS. 
(a) ENDOWMENT CALCULATIONS.— 
(1) COLLECTION
BY
NCES.—Not 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 pro-
gram participation agreement with the Sec-
retary 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 subpara-
graph (A) to identify— 
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(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 subpara-
graph (B) and submit such lists to the Director 
of the Office of Management and Budget. 
(2) DISTRIBUTION
BY
OMB.—Not later than 
September 30 of each year, the Director of the Of-
fice 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.— 
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(1) PROHIBITION
FOR
INSTITUTIONS
WITH 
HIGHEST
ENDOWMENT
FUNDS.—Notwithstanding 
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 INSTITU-
TIONS WITH SUBSTANTIAL ENDOWMENT FUNDS.— 
Notwithstanding 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 pre-
ceding 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 INSTITUTIONS.—Notwithstanding 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. 
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(d) PROGRAM
PARTICIPATION
AGREEMENT
RE-
QUIREMENT.—Section 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 en-
dowment fund information needed by the Commis-
sioner to carry out section 3(a)(1) of the No Sub-
sidies for Wealthy Universities Act.’’. 
SEC. 4. IMPROVING OVERSIGHT OF INDIRECT COST REIM-
BURSEMENT. 
The Comptroller General of the United States shall 
prepare and submit to Congress an annual report regard-
ing 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 
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members with responsibilities related to diver-
sity, 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 in-
stitutions of higher education; and 
(B) the institutions of higher education 
that received Federal research awards from 
such agencies. 
SEC. 5. EFFECTIVE DATE; APPLICABILITY. 
This 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. 
Æ 
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