Congressman Cline Proposes Accountability for Use of Federal Grants in Universities

New Bill Seeks to Curtail Funding of DEI Programs with Taxpayer Money.

WASHINGTON, D.C. – Congressman Ben Cline (R-VA) has introduced a significant piece of legislation, the Federal Grant Accountability Act, aimed at ensuring higher education institutions use federal grant money exclusively for research projects. The bill emerged in response to concerns over the use of taxpayer-funded grants for Diversity, Equity, and Inclusion (DEI) initiatives within universities.

This legislative move follows testimonies from university presidents about the growing issue of antisemitism on college campuses. The hearings, held by the House Education and Workforce Committee, revealed that while some universities are judiciously utilizing grants for scientific research, others are channeling these funds into DEI activities.

Under the new bill, universities would be required to report the allocation of indirect cost reimbursements, providing transparency in the federal grant-making process. The Act also seeks to limit federal agencies from distributing funds at an indirect rate higher than the lower rate offered to private organizations.

Congressman Cline emphasized the importance of safeguarding taxpayer dollars. He expressed concern over universities using grant money as a “slush fund” to promote what he terms “woke, radical DEI activities,” diverting from the intended purpose of supporting legitimate, research-oriented projects.

Ryan Walker, Executive Vice President of Heritage Action, supported Cline’s stance. He highlighted that higher education should focus on driving research and fostering diversity of thought rather than complying with political agendas. According to Walker, DEI practices, as currently implemented, contribute to division rather than inclusivity, with university bureaucrats exploiting these practices at taxpayers’ expense.

Background information sheds light on the funding model for academic research. Since 1946, taxpayers have subsidized scientific research at higher education institutions. The costs of these research projects include both direct costs and overhead expenses, the latter known as indirect costs. While direct costs are straightforward to quantify, indirect costs are more nebulous. Universities can currently receive reimbursements from federal agencies based on a negotiated indirect cost rate, sometimes as high as 60 percent of the direct costs. This has led to concerns that such funds could be diverted from their intended research purposes.

The Federal Grant Accountability Act represents a crucial step towards ensuring that federal grants allocated to universities are used appropriately. As the debate over the funding of DEI programs with taxpayer money continues, this bill highlights the need for transparency and accountability in the allocation of federal funds for higher education.

Read the full bill text here.