US Federal 2025-2026 Regular Session

US Federal House Bill HB422

Introduced
1/15/25  

Caption

No Subsidies for Wealthy Universities ActThis bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs) with endowments above specified thresholds. (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)Specifically, the National Center for Education Statistics (NCES) must annually collect information regarding the endowments of each IHE that has entered into a program participation agreement with the Department of Education.With this collected information, NCES must identify and make lists of (1) each IHE with an endowment of more than $5 billion, and (2) each IHE with an endowment of more than $2 billion (but not more than $5 billion). NCES must submit these lists to the Office of Management and Budget, which must then distribute the lists to federal agencies, Congress, and the public.The bill establishes the following limits on the indirect costs allowable under federal research awards:for an IHE with an endowment of more than $5 billion, the IHE is prohibited from using these awards for indirect costs;for an IHE with an endowment of more than $2 billion (but not more than $5 billion), the IHE is limited to an indirect cost rate of 8%; andfor all other IHEs, an indirect cost rate of 15%.The Government Accountability Office must annually report to Congress on indirect cost reimbursement on federal research awards for IHEs.

Impact

The proposed legislation is designed to increase transparency and accountability regarding how federal funds are utilized in higher education, particularly in terms of administrative expenditures. By imposing these limits, the bill intends to ensure that federal research funding is directly supporting research activities rather than being absorbed by overhead costs. This could significantly affect larger institutions that may rely heavily on indirect costs to support their operations, creating a shift in how these universities approach funding and budgeting for research projects.

Summary

House Bill 422, titled 'No Subsidies for Wealthy Universities Act,' seeks to establish limits on the reimbursement of indirect costs associated with federal research awards for institutions of higher education. Specifically, the bill aims to curb the use of federal funds for indirect costs at institutions with substantial endowment funds, defined as those having totals exceeding $5 billion and between $2 billion and $5 billion. For the latter, the bill allows an indirect cost rate not to exceed 8 percent, while those with higher endowments would not be permitted to use any federal funds for such costs.

Contention

There are notable points of contention surrounding HB 422, particularly regarding perceptions of equity in funding among different types of institutions. Critics argue that limiting indirect costs may disproportionately impact universities that serve larger student populations and require more substantial administrative support. Supporters, however, assert that this measure is necessary to prevent wealthier institutions from using federal research awards to subsidize administrative overhead, which they see as a misuse of taxpayer funds. The debate centers on balancing the need for efficient fund allocation without undermining the support infrastructure essential for diverse educational institutions.

Congress_id

119-HR-422

Policy_area

Education

Introduced_date

2025-01-15

Companion Bills

No companion bills found.

Previously Filed As

US HB420

Federal Grant Accountability ActThis bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs). (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)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.

US HB446

Endowment Tax Fairness ActThis bill increases the excise tax on the net investment income of certain private university and college endowments. Under current law, certain private universities and colleges with 500 or more tuition-paying students (of which more than 50% are located in the United States) and endowments that are at least $500,000 per student pay an excise tax in the amount of 1.4% on the net investment income from such endowments.The bill increases the amount of the excise tax to 21% of the net investment income from such university and college endowments. Further, the bill provides that amounts collected from the increase to the excise tax on the net investment income from such university and college endowments are (1) to be deposited into the general fund of the Treasury; and (2) used to reduce the national deficit and, subsequently, the national debt. 

US HB1318

United States Research Protection ActThis bill clarifies the definition of a malign foreign talent recruitment program under the Research and Development, Competition, and Innovation Act. The Research and Development, Competition, and Innovation Act, which was included in the CHIPS and Science Act, prohibits researchers who receive federal funds from participating in malign foreign talent recruitment programs, in which foreign countries incentivize or compensate researchers for activities that present a conflict of interest for the researcher or that are otherwise unauthorized (e.g., sharing proprietary information without proper authorization).The bill clarifies that these restrictions apply to programs that are sponsored by a foreign country of concern, including China, Iran, North Korea, and Russia. The bill also clarifies that malign foreign talent recruitment programs may involve direct or indirect compensation or incentives from such countries.

US HB82

Defund National Endowment for the Humanities Act of 2025This bill prohibits the use of any funds that are made available to the National Endowment for the Humanities of the National Foundation on the Arts and the Humanities to carry out the functions, programs, or activities of such endowment.

US S03751

Requires educational institutions with an endowment of 10 billion dollars or more to incorporate thirty percent affordable housing units in any property owned by such institution that provides any form of housing.

US HB1692

Producing Advanced Technologies for Homeland Security Act or the PATHS ActThis bill extends through FY2028 the authority of the Department of Homeland Security (DHS) to use other transactions (OT) to carry out research and prototype projects when the use of contracts, grants, and cooperative agreements is not feasible or appropriate. (OTs, in contrast to traditional procurement contracts, are exempt from many federal procurement laws and regulations.) DHS must notify Congress within 72 hours of using or extending this authority for research and development projects related to artificial intelligence technology and must offer to brief Congress on the rationale for such a decision. The bill also lowers from $4 million to $1 million the minimum value of contract awards that DHS must publicly report on its website.

US HB1090

Truth in Tuition Act of 2025This bill requires institutions of higher education (IHEs) that participate in federal student aid programs to provide admitted students with information related to tuition and fees. Specifically, the bill requires an IHE to provide to a student (1) a multi-year tuition and fee schedule; or (2) a single-year tuition and fee schedule and a nonbinding, multi-year estimate of net costs after financial aid is awarded. The Department of Education may waive this requirement under certain circumstances.

US HB341

Railroad Responsibility Act of 2025This bill provides states with the authority to adopt or enact any law, regulation, order, or other requirement limiting the duration that a railroad carrier may block a grade rail crossing. Specifically, this bill states that federal transportation laws do not preempt a state from adopting or enacting these limits. As background, state and federal courts have generally found that state laws regarding obstructed crossings are preempted by one or more federal laws, thereby rendering the state laws unenforceable.

US HB1033

College Oversight and Legal Updates Mandating Bias Investigations and Accountability Act of 2025 or the COLUMBIA Act of 2025This bill requires the Department of Education (ED) to establish a program to appoint third-party anti-Semitism monitors at certain institutions of higher education (IHEs). Specifically, ED must establish this program to appoint a monitor at an IHE that (1) has a high incidence of anti-Semitic activity (based on data received from ED's Office for Civil Rights), and (2) receives federal funds for higher education. ED must develop an anti-Semitism monitorship agreement that (1) designates the terms and conditions of the monitorship, and (2) requires the IHE to provide for the monitor's reasonable expenses. The bill requires the monitor tooperate under the monitorship agreement developed by ED and entered into with the IHE; provide publicly available quarterly reports that evaluate the IHE's progress in combating anti-Semitism on campus; andprovide annual reports to Congress, ED, state and local governments (as needed), and the IHE that include recommendations for actions, policies, and sanctions to prevent and reduce anti-Semitism at the IHE.

US SB30

Expediting Reform And Stopping Excess Regulations Act or the ERASER ActThis bill generally requires federal agencies to repeal three rules before issuing a new rule.In the case of a new nonmajor rule, an agency must repeal at least three rules that, to the extent practicable, are related to the new rule.In the case of a new major rule, (1) an agency must repeal at least three rules that are related to the new major rule, and (2) the cost of the new major rule must be less than or equal to the cost of the repealed rules. A major rule is a rule that has resulted in or is likely to result in (1) an annual effect on the economy of $100 million or more; (2) a major increase in costs or prices for consumers, individual industries, government agencies, or geographic regions; or (3) significant adverse effects on competition, employment, investment, productivity, or innovation.These requirements apply to rules issued through the notice and comment process and do not apply to interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice. Further, the requirements do not apply to a rule or major rule that relates to the management, organization, or personnel of an agency or procurement by the agency.Any rule repealed under this bill must be published in the Federal Register.Finally, the Government Accountability Office must report on the number and estimated cost of rules and major rules currently in effect.  

Similar Bills

No similar bills found.