SENATE RELEASES FINANCIAL SERVICES AND GENERAL GOVERNMENT BILL; COMMITTEE URGES OMB COLLABORATION ON INDIRECT COST POLICY
Senate Republican appropriators released the FY26 Financial Services and General Government (FSGG) bill, accompanied by a committee report that includes significant language encouraging OMB to work with universities to refine federal indirect cost (F&A) rate policy. The report recognizes the essential role that indirect cost recovery plays in supporting compliance, research operations, and institutional infrastructure, and calls for a consensus-driven approach to “optimizing” rates. Beyond this language, the $26.9 billion package proposes cuts across Treasury, IRS, and several independent agencies, while modestly increasing funding for the judiciary. Current funding for these agencies expires January 30.