I 
118TH CONGRESS 
2D SESSION 
H. R. 8224 
To establish Federal research award reimbursement limits for indirect costs 
for institutions of higher education, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 2, 2024 
Mr. CLINE (for himself, Mr. HARRIS, Mr. D’ESPOSITO, and Mr. SELF) intro-
duced the following bill; which was referred to the Committee on Science, 
Space, and Technology, and in addition to the Committee on Education 
and the 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 
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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(1) AGENCY.—The term ‘‘agency’’ has the 
meaning given the term in section 551 of title 5, 
United States Code. 
(2) DIRECT COST.—The 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
FUND.—The term ‘‘endow-
ment fund’’ has the meaning given the term in sec-
tion 312(c) of the Higher Education Act of 1965 
(20 U.S.C. 1058(c)). 
(4) FEDERAL
RESEARCH
AWARD.—The 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 COST.—The 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 RATE.—The term ‘‘indirect 
cost rate’’, with respect to a project supported under 
a Federal research award, means the ratio, ex-
pressed as a percentage, of the indirect costs of the 
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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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(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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