Section 1 Limiting indirect costs
In general— Notwithstanding any other provision of law, the head of an agency may not distribute any grant to an institution of higher education under a competitive discretionary grant program if any part of the grant is used for indirect costs.
Definitions— In this section:
Administration costs— The term administration costs means general administration and general expenses, such as the salaries and expenses of executive officers, personnel administration, and accounting.
Agency— The term “agency” has the meaning given that term in section 551 of title 5, United States Code.
Indirect costs— The term indirect costs means with respect to a grant, the facilities costs, administration costs, and other costs incurred for a common or joint purpose not readily assignable to the grant objectives.
Institution of higher education— The term “institution of higher education” has the meaning given the term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
Facilities costs— The term facilities costs means depreciation and use allowances on buildings, equipment and capital improvement, interest on debt associated with certain buildings, equipment and capital improvements, and operations and maintenance expenses.