Sen. Mike Lee, R-Utah, introduced the No Subsidies for Wealthy Universities Act in the Senate to address university subsidies from the federal government that are being used to support diversity, equity, and inclusion (DEI) programs. His bill aims to limit the indirect cost reimbursements on federal subsidies for research for universities with endowments greater than $5 billion, capping them at 8%. Those with endowments between $2 billion and $5 billion would also be capped at 8%, while all other institutions would face a 15% cap on indirect costs. The bill is also co-sponsored by Sen. Roger Marshall, R-Kan., and Rep. Ben Cline, R-Va.
The focus on DEI initiatives at U.S. universities, as well as recent anti-Israel protests and riots, prompted Senator Lee to introduce the legislation. He criticized the emphasis on DEI at universities and described anti-Israel protests as a disgrace. The bill aims to ensure that federal dollars are dedicated to legitimate research purposes rather than advancing political agendas on campuses. The measure specifically targets the use of indirect costs reported for compensation to DEI staff by requiring universities to report this amount to Congress annually.
Columbia University, which has been in the spotlight for anti-Israel protests, received $471 million in indirect costs associated with research grants in fiscal 2022. Under Sen. Lee’s proposal, the university would be required to report how much of this money is going to DEI administrators. Rep. Ben Cline criticized the misuse of taxpayer dollars intended for scientific research at wealthy universities to finance radical DEI agendas, calling it a blatant betrayal of American taxpayers. The bill aims to ensure that federal funds are used for legitimate research purposes, not to support ideological initiatives on college campuses.
The bill introduced by Sen. Mike Lee aims to eliminate indirect cost reimbursements on federal subsidies for research for universities with large endowments in order to prevent taxpayer dollars from financing DEI initiatives and political agendas on campuses. The measure has garnered support from other lawmakers, including Sen. Roger Marshall and Rep. Ben Cline. The legislation comes amid growing concerns about the influence of DEI programs and anti-Israel protests at universities across the country.
The No Subsidies for Wealthy Universities Act would require universities to report the amount of indirect costs allocated to DEI administrators, ensuring transparency in how federal funds are used. Sen. Lee and other Republicans have criticized the use of taxpayer dollars to support radical DEI agendas and have called for greater accountability in how university subsidies are allocated. The bill represents an effort to address concerns about the politicization of higher education and ensure that federal funds are used for legitimate research purposes.
The legislation introduced by Sen. Mike Lee to limit indirect cost reimbursements on federal subsidies for research at universities with large endowments reflects growing concerns about the misuse of taxpayer dollars to fund DEI programs and political agendas on college campuses. The bill aims to increase transparency in how federal funds are allocated and prevent universities from using taxpayer money to advance ideological initiatives. Sen. Lee’s proposal has received bipartisan support and underscores the need for greater oversight of university subsidies to ensure that they are used for legitimate research purposes.
