Sen. Mike Lee, R-Utah, has introduced the No Subsidies for Wealthy Universities Act in response to the expansion of diversity, equity and inclusion (DEI) programs and the loss of control over anti-Semitic protests and riots at universities. The bill aims to eliminate indirect cost reimbursements on federal subsidies for research for universities with endowments greater than $5 billion. For universities with endowments between $2 billion and $5 billion, the bill would cap indirect costs at 8%, while all other institutions would face a 15% cap. The Senator argues that tax dollars are funding wealthy universities that support DEI programs and produce graduates who riot against Israel and despise the country.
The bill has a companion version introduced in the House by Rep. Ben Cline, R-Va., and is co-sponsored by Sen. Roger Marshall, R-Kan. The focus of the legislation is to ensure that federal funds are being used for legitimate research purposes and not diverted to advance radical DEI agendas. Sen. Lee and Rep. Cline criticize the use of taxpayer dollars for DEI programs at universities like Columbia and Harvard, where funds intended for scientific research are being redirected to finance political doctrines on campus. The bill specifically targets the use of indirect costs for compensating DEI staff, requiring universities to report these expenditures annually to Congress.
Sen. Lee highlights the emphasis on DEI programs and the surge in anti-Israel protests as key motivators for introducing the legislation, calling such activities a disgrace. He argues that universities should not tarnish their reputations as academic institutions with taxpayer money and should be responsible for funding such initiatives on their own. The bill aims to hold universities accountable for using federal subsidies for research in an appropriate manner, rather than for advancing political ideologies. The focus is on redirecting resources towards legitimate research purposes and away from DEI agendas that do not align with the mission of higher education.
Columbia University, as an example, has been in the spotlight due to anti-Israel protests that disrupted its operations. The university received significant amounts in indirect costs associated with research grants, totaling $471 million in fiscal 2022. Under the No Subsidies for Wealthy Universities Act, Columbia University would be required to report how these funds are being used, particularly the amounts allocated to DEI administrators. This transparency would allow for better oversight and accountability in ensuring that federal funds are being used appropriately and not diverted to support political agendas on campus.
The No Subsidies for Wealthy Universities Act is aimed at curbing the use of federal subsidies for research at wealthy universities to support DEI programs and political agendas. Sen. Lee and Rep. Cline argue that taxpayer dollars should be used for legitimate research purposes and not to finance radical DEI initiatives or anti-Israel protests. The legislation calls for greater transparency in how universities are using federal funds, particularly for compensation to DEI staff. By capping indirect costs on subsidies and mandating reporting to Congress, the bill seeks to ensure that universities are held accountable for how they allocate federal resources and prevent misuse for non-research purposes.
