Title: Federal Grant Accountability Act
Policy area: Education

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.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8095 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 8095

 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

                             June 16, 2022

  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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Grant Accountability Act''.

SEC. 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).

SEC. 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 one 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.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            (2) 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 activities, which may include support in the form of a 
        grant, contract, cooperative agreement, or other such 
        transaction.
            (3) Private research award.--The term ``private research 
        award'' means an award made by a private sector organization to 
        support research activities at an institution of higher 
        education.
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