No Subsidies for Wealthy Universities Act

HR 422, the "No Subsidies for Wealthy Universities Act," limits how federal research funds can cover indirect costs (like administrative expenses) at universities with large endowments. It prohibits institutions with endowments over $5 billion from using any federal research funds for indirect costs, caps indirect costs at 8% for those with $2-5 billion in endowments, and sets a 15% cap for all other institutions. The bill requires annual collection of endowment data by the National Center for Education Statistics and mandates public reporting of how indirect costs are used. It directly affects research funding for the wealthiest universities, reducing federal support for their administrative operations. The policy applies to new federal research awards starting one year after enactment.