The purpose of this legislation is to set limits on the indirect costs that institutions of higher education can charge when they receive federal research funding. The goal is to make the funding process more accountable and to ensure that federal research awards are used more efficiently. One of the key provisions of this legislation is that the total indirect costs allowable under federal research awards cannot exceed the average indirect costs allowed under private research awards. This average will be determined annually by the Director of the Office of Management and Budget.