No Subsidies for Wealthy Universities Act
Sponsored By: Representative Cline, Ben [R-VA-6]
Introduced
Summary
Limits federal reimbursement for university research overhead based on endowment size. This bill would cap how much federal research award funds can pay for indirect costs and add annual data collection and oversight to track those funds.
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- Institutions with endowments over $5 billion would be barred from using federal research award funds to cover indirect costs.
- Institutions with endowments over $2 billion but not more than $5 billion would face an 8% indirect cost rate cap. All other institutions would face a 15% cap on indirect costs.
- Participating institutions must annually provide endowment data to the Commissioner for Education Statistics. The Commissioner would compile lists for agencies, Congress, and the public, and the Comptroller General would report annually on how reimbursed indirect costs are used and which fields and agencies receive the most funding. The rules would apply to federal research awards made one year after enactment.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Caps on university overhead in grants
If enacted, colleges with endowments over $5 billion would get 0% for indirect costs on federal research awards. Schools with $2 billion to $5 billion would be capped at 8% for indirect costs. All other schools would be capped at 15% for indirect costs. Agencies would use each school’s endowment value as of September 30 of the prior fiscal year. These limits would start one year after enactment and would apply to awards made on or after that date.
Annual endowment reports and public lists
If enacted, colleges in federal aid programs would need to send NCES their endowment totals each year. NCES would use values as of September 30 from the prior fiscal year and sort schools above $5 billion and $2–$5 billion. By each September 30, OMB would share these lists with agencies, Congress, and the public. GAO would also send Congress a yearly report on indirect costs paid, including admin pay and DEI staff spending, top fields, agencies, and schools. These reporting steps would begin one year after enactment.
Sponsors & CoSponsors
Sponsor
Cline, Ben [R-VA-6]
VA • R
Cosponsors
Rep. Clyde, Andrew S. [R-GA-9]
GA • R
Sponsored 1/15/2025
Rep. Harris, Andy [R-MD-1]
MD • R
Sponsored 1/15/2025
Rep. Self, Keith [R-TX-3]
TX • R
Sponsored 1/21/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov