Press Releases

Today, Congressman Ben Cline (R-VA) introduced the Federal Grant Accountability Act. This legislation would ensure that higher education institutions are properly using taxpayer-funded federal grant money solely for conducting research projects, rather than for funding Diversity, Equity, and Inclusion (DEI) initiatives, by requiring reports on how indirect cost reimbursements are being allocated to schools to provide more transparency to the federal grant-making process. It would also prohibit federal agencies from distributing funds at an indirect rate that is higher than the lower rate offered to private organizations.

This comes following a shocking testimony from university presidents during a House Education and Workforce Committee hearing on the massive rise in antisemitism on college campuses.

Rep. Ben Cline said, “Universities are raking in tens of billions of dollars from taxpayers for scientific research. While some are using their grant money appropriately, others are using it as a slush fund to promote woke, radical DEI activities. Congress must protect Americans’ taxpayer dollars and ensure that the money received is being spent on legitimate, research-oriented purposes, not to push the Left’s political agenda on college campuses.”

Executive Vice President of Heritage Action, Ryan Walker, said, “Institutions of higher education should drive research and promote diversity of thought, not forced compliance with radical political agendas. DEI practices promote division in America, further exploited by university bureaucrats at the expense of taxpayers. The Federal Grant Accountability Act holds universities accountable by ensuring taxpayer funds are used for actual research and not as fuel for the Left’s agenda."

Background

• In 1946, taxpayers began subsiding scientific research at higher education institutions.
• The cost of all academic research projects is broken down into two types of costs: direct costs of the project and overhead expenses, also known as indirect costs.
• While direct costs are easy to quantify and itemize, indirect costs are not. Currently, universities can receive reimbursement from federal agencies based on an indirect cost rate, defined as a percentage of the direct costs of a research project. This is negotiated between the federal agency awarding the project and each university.
• In some cases, that indirect cost a university is reimbursed for can be high as 60 percent, which means the university can receive hundreds of thousands of dollars in reimbursements for indirect costs that can be used by the school for whatever purposes they choose. While some schools use those funds directly toward the research project, others are likely to use the money to fund Diversity, Equity, and Inclusion (DEI) activities on college campuses.

Read more coverage from Washington Examiner here.

Read the full bill text here.

Congressman Ben Cline represents the Sixth Congressional District of Virginia. He previously was an attorney in private practice and served both as an assistant prosecutor and Member of the Virginia House of Delegates. Cline and his wife, Elizabeth, live in Botetourt County with their two children.

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