WASHINGTON – Sens. Mike Lee (R-UT) introduced the No Subsidies for Wealthy Universities Act, a new bill to address the misuse of taxpayer dollars in higher education. The bill targets institutions that perpetuate administrative bloat and advance ideological agendas under the guise of education. Its introduction comes in response to the disturbing wave of violence and antisemitic rhetoric that has swept across college campuses. Senators Roger Marshall (R-KS) and Josh Hawley (R-MO) have joined as cosponsors while Congressman Ben Cline (R-VA) spearheads the companion effort in the House of Representatives.

Sen. Lee's legislation specifically aims to eliminate indirect cost reimbursements on federal research grants for universities with endowments exceeding $5 billion and imposes stringent accountability measures on how these institutions utilize taxpayer funds, especially in their administrative and diversity departments.

“The tax dollars of hard-working American families are going to ultra-wealthy universities, like Columbia and Harvard, supporting woke DEI programs while churning out graduates who riot for the destruction of Israel and desecrate the American flag,” said Sen. Lee.  “It is a disgrace, which is why I introduced legislation to cut off certain public funding streams to the richest universities. If they want to trash their reputations as academic institutions, they can do it on their own dime.”  

"Billions in taxpayer dollars intended for scientific research at wealthy universities, like Columbia and Harvard, are being hijacked to finance radical DEI agendas,” said Rep. Cline. “This misuse of funds is a blatant betrayal of American taxpayers. Congress has a duty to intervene, ensuring that these dollars are dedicated to legitimate research purposes, not to advance the Left's political doctrine on our campuses."

Sen. Lee's bill would cap indirect cost reimbursements, which have historically covered vague and non-itemizable expenses such as administrative overheads and building maintenance, at a maximum of 8% for institutions with endowments between $2 billion and $5 billion and at 15% for all others.

Furthermore, the bill requires institutions receiving federal grant money to disclose the allocation of funds towards diversity, equity, and inclusion staffing, ensuring transparency and accountability.

Heritage Action endorses the legislation.

For bill text, click HERE.