H.R.422 - No Subsidies for Wealthy Universities Act (119th Congress)
Summary
H.R. 422, the "No Subsidies for Wealthy Universities Act," aims to limit federal research award reimbursements for indirect costs to institutions of higher education with significant endowment funds. The bill mandates the Commissioner for Education Statistics to collect and disseminate information on university endowment sizes. It then sets caps on indirect cost reimbursements based on endowment size, potentially prohibiting them altogether for institutions with over $5 billion in endowments and limiting them to 8% for those with $2-5 billion.
Expected Effects
This bill could significantly reduce the amount of federal research funding received by wealthy universities. It may also lead to a shift in funding towards institutions with smaller endowments. The Comptroller General would be required to report annually on indirect costs reimbursed under federal research awards, increasing oversight.
Potential Benefits
- Reduced federal spending: By limiting indirect cost reimbursements, the bill could lead to lower federal expenditures on research.
- Potential shift in funding: Funds could be redirected to less wealthy institutions, potentially fostering broader research opportunities.
- Increased transparency: The Comptroller General's report would provide greater insight into how federal research funds are used.
- Fairer distribution of resources: Aims to level the playing field by reducing subsidies to already wealthy institutions.
- Focus on direct research costs: Encourages universities to prioritize direct research activities over administrative overhead.
Most Benefited Areas:
Potential Disadvantages
- Reduced research capacity at wealthy universities: Limits on indirect cost reimbursements could hinder research activities at top institutions.
- Administrative burden: Universities may face increased administrative burdens in tracking and managing indirect costs.
- Potential for unintended consequences: Could lead to decreased competitiveness of US universities in attracting top researchers.
- Difficulty in attracting talent: Limits on funding could make it difficult for universities to attract and retain top researchers.
- Decreased innovation: Reduced funding could lead to a decrease in research and innovation.
Constitutional Alignment
The bill appears to align with Congress's power to appropriate funds for the general welfare, as outlined in Article I, Section 8 of the Constitution. It does not appear to infringe upon any specific constitutional rights or protections. The bill's focus on regulating federal spending falls within the purview of legislative authority.
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).