House Proposes Cap for Defense Grants.

The article discusses how a provision added to an appropriations bill for the U.S. Defense Department would place a 20-percent cap on overhead costs for competitively awarded grants from the agency. According to the article the 20-percent cap proposed in the Defense Department bill would be a considerable departure from current rates. The article asserts that the bill's restrictions come at a time when research universities are already being financially affected by government caps on the overhead rate, which is the portion of a grant that helps reimburse colleges for costs of facilities and administration used in carrying out sponsored research.