H.R.420 - Federal Grant Accountability Act (119th Congress)
Summary
H.R.420, the Federal Grant Accountability Act, aims to limit indirect costs under federal research awards to institutions of higher education. The bill caps these costs at the average rate applicable to private research awards. It also mandates a Comptroller General study on indirect cost rates under both federal and private research awards, including an assessment of administrative staff funding related to diversity, equity, and inclusion.
Expected Effects
The bill could lead to reduced federal funding for indirect costs at universities, potentially impacting research budgets and administrative staffing. The study mandated by the bill could reveal disparities in indirect cost rates between federal and private research awards. This may lead to policy changes aimed at standardizing or optimizing the allocation of research funds.
Potential Benefits
- Potentially reduces wasteful spending by limiting indirect costs.
- Increases transparency in how federal research funds are used through the Comptroller General study.
- May encourage institutions to seek private funding, diversifying their funding sources.
- Could lead to a more efficient allocation of research funds, prioritizing direct research activities.
- Addresses concerns about administrative overhead, particularly related to diversity, equity, and inclusion initiatives.
Most Benefited Areas:
Potential Disadvantages
- May negatively impact universities that rely heavily on federal research funding, especially those with high indirect costs.
- Could lead to a reduction in administrative staff, potentially affecting essential support services.
- The cap on indirect costs may discourage universities from pursuing certain types of research.
- The definition and calculation of indirect costs may be subject to interpretation and manipulation.
- Focusing on indirect costs may distract from addressing other factors affecting research quality and outcomes.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to appropriate funds and regulate spending. The mandated study and limitations on indirect costs fall within Congress's authority to oversee federal spending and ensure accountability. There are no apparent infringements on individual rights or liberties as defined by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).