Federal Grant Accountability Act

This bill would limit how much money colleges and universities can charge the federal government for indirect costs when they receive federal research grants. Indirect costs are expenses like building maintenance and administrative support that aren't directly part of the research project but are needed to support it. Under the bill, the indirect costs that colleges can charge on federal research grants could not be more than what they charge on private research grants. The Office of Management and Budget would figure out the average indirect cost rate for private research awards, and the Government Accountability Office would study and report on indirect cost rates for both federal and private research awards to colleges and universities.

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