Federal Grant Accountability Act

# Federal Grant Accountability Act Summary **What It Would Do** This bill would cap the indirect costs that colleges and universities can charge when they receive federal research grants. Indirect costs cover overhead expenses like maintaining facilities, administrative staff, and infrastructure needed to support research—not the actual research itself. Under this bill, schools could charge no more in indirect costs from federal grants than they average from private research funding sources.

The bill also requires the Office of Management and Budget to calculate what private institutions typically charge for indirect costs, and mandates a Government Accountability Office study comparing indirect cost rates across federal agencies (like the National Institutes of Health and National Science Foundation). **Who It Affects** Colleges, universities, and other institutions of higher education that conduct federally funded research would be most directly affected. Currently, many schools charge higher indirect cost rates on federal grants than on private research contracts. This bill could reduce funding available to universities for research infrastructure and operations, though supporters argue it would save taxpayer money. **Current Status** The bill is currently in committee and has not yet been voted on by the full House of Representatives.