Bill > HR420

This bill, known as the "Federal Grant Accountability Act," seeks to limit the amount of indirect costs that institutions of higher education can charge on federal research awards by tying these costs to the rates of private research awards. Specifically, the bill requires that the total indirect costs for a federal research award cannot exceed the average indirect cost rate of private research awards, which will be determined annually by the Director of the Office of Management and Budget. The bill also mandates a comprehensive study by the Comptroller General to examine indirect cost rates in both federal and private research awards, including an analysis of funding levels, research fields, administrative staffing, and the consistency of cost rate-setting guidance across federal research organizations. The study will assess how much indirect costs are used for administrative expenses, particularly for staff related to diversity, equity, and inclusion, and will result in a report to Congress with recommendations for improving the indirect cost rate system. The bill defines key terms such as "federal research award" as support from a federal agency to conduct research, and "private research award" as support from a private sector organization for research activities at a higher education institution.

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https://www.congress.gov/bill/119th-congress/house-bill/420/all-info