Limited Time Offer. Become a Founder Member Now!

Committee approves temporary change to nonprofit indirect‑cost reimbursement rate and commissions multi‑year DBM study

February 14, 2025 | Health and Government Operations Committee, HOUSE OF REPRESENTATIVES, Committees, Legislative, Maryland


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Committee approves temporary change to nonprofit indirect‑cost reimbursement rate and commissions multi‑year DBM study
The Health and Government Operations Committee on Friday advanced House Bill 300, which raises the minimum indirect‑cost reimbursement rate for nonprofit organizations receiving certain state grants or contracts to the greater of the federal de minimis rate established in federal regulations (currently 15%) or 15 percent and adds a reporting requirement for the Department of Budget and Management (DBM).

Committee staff described two amendment sets: one adopted in subcommittee that made the bill an emergency measure and adjusted the reimbursement formula, and a reporting amendment that requires DBM to examine salaries and administrative expenses for nonprofit recipients of state grants or contracts that exceed $1,000,000 and that were recipients prior to the bill's effective date. The study would compare the indirect cost rate received before the bill's effective date (the committee cited an effective date of October 1, 2025) with rates during the three‑year study window (October 1, 2025–October 1, 2028). DBM would report findings in December 2028.

Supporters framed the amendments as a compromise to raise the floor while limiting administrative burden; they said the reporting threshold ($1,000,000) and the three‑year window were selected to keep the study scope manageable and avoid a large fiscal note. Several members pressed for an earlier report date; sponsors said a later date was chosen to reduce the fiscal and administrative impact and to preserve the bill’s prospects in the Senate.

Members voiced concern about raising the indirect rate from 10% to 15% without accountability provisions. The committee adopted the amendments and advanced the bill as amended. The transcript records members who said they would not join as cosponsors or who registered opposition if the Senate removed the reporting requirement; the transcript lists "Delegate Shaliga, Delegate Chisholm, Delegate Morgan, Delegate Riley, Delegate Hutchinson, Delegate Kipke" among those who declined co‑sponsorship on the final tally noted in the hearing.

View full meeting

This article is based on a recent meeting—watch the full video and explore the complete transcript for deeper insights into the discussion.

View full meeting

Sponsors

Proudly supported by sponsors who keep Maryland articles free in 2025

Scribe from Workplace AI
Scribe from Workplace AI