I 
119TH CONGRESS 
1ST SESSION 
H. R. 420 
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 
JANUARY 15, 2025 
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 allow-
able under Federal research awards to 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 ‘‘Federal Grant Ac-
countability Act’’. 
SEC. 2. LIMITATIONS ON INDIRECT COSTS ALLOWABLE 
UNDER FEDERAL RESEARCH AWARDS. 
(a) IN GENERAL.— 
(1) LIMIT
ON
INDIRECT
COSTS.—The total 
amount of indirect costs allowable under a Federal 
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research award to an institution of higher education 
may not exceed the total amount of indirect costs al-
lowable under private research awards, as calculated 
using the average indirect cost rate applicable to 
such awards. 
(2) 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 paragraph (1). 
(3) DETERMINATION OF INDIRECT COSTS.—In 
determining ‘‘indirect costs’’ for purposes of this 
subsection, the guidelines under subpart E of title 2, 
Code of Federal Regulations (or successor regula-
tions) for determining indirect costs charged to Fed-
eral awards shall be used. 
(b) COMPTROLLER GENERAL STUDY ON INDIRECT 
COSTS
UNDER
FEDERAL
AND
PRIVATE
RESEARCH 
AWARDS.— 
(1) STUDY.—The Comptroller General of the 
United States shall conduct a study on— 
(A) the indirect cost rates allowable under 
Federal research awards to institutions of high-
er education, including awards made by the Na-
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tional Institutes of Health, the National Science 
Foundation, and other such organizations; and 
(B) the indirect cost rates allowable under 
private research awards to institutions of higher 
education. 
(2) ELEMENTS.—The study under paragraph 
(1) shall include an assessment of— 
(A) the average indirect cost rates allow-
able under Federal and private research 
awards, respectively; 
(B) the research fields that receive the 
highest levels of funding from Federal and pri-
vate research awards, respectively; 
(C) the average amount of indirect costs 
allowable under Federal and private research 
awards that are used to fund administrative 
staff, including administrative staff with re-
sponsibilities relating to diversity, equity, and 
inclusion; and 
(D) the measures implemented by organi-
zations that make Federal research awards, in-
cluding the National Institutes of Health and 
the National Science Foundation, to ensure 
such organizations are implementing indirect 
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cost rate-setting guidance in a consistent man-
ner. 
(3) REPORT.—Not later than one year after the 
date of the enactment of this Act, the Comptroller 
General shall submit to Congress a report on the re-
sults of the study conducted under paragraph (1). 
The report shall include such recommendations as 
the Comptroller General considers appropriate to im-
prove the system for determining indirect cost rates 
and tracking reimbursements for indirect costs 
under Federal research awards. 
(c) DEFINITIONS.—In this section: 
(1) FEDERAL
RESEARCH
AWARD.—The term 
‘‘Federal research award’’ means support provided 
to an individual or entity by a department or agency 
of the Federal Government to carry out research ac-
tivities, which may include support in the form of a 
grant, contract, cooperative agreement, or other 
such transaction. 
(2) 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). 
(3) PRIVATE
RESEARCH
AWARD.—The term 
‘‘private research award’’ means an award made by 
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a private sector organization to support research ac-
tivities at an institution of higher education. 
Æ 
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