H.R. 420 — Federal Grant Accountability Act

This section limits the total indirect costs allowable under a Federal research award to an institution of higher education to the total amount allowable under private research awards, calculated using the average indirect cost rate applicable to such private awards as determined annually by the Director of the Office of Management and Budget (using guidelines under 2 CFR subpart E). The section further directs the Comptroller General to conduct a study of indirect cost rates under Federal and private research awards to institutions of higher education—including average rates by award type, highest-funded research fields, administrative uses (including for diversity, equity, and inclusion staff), and implementation consistency by agencies such as the National Institutes of Health and National Science Foundation—and to submit a report to Congress with recommendations within one year of enactment.