Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1023

Introduced
2/5/25  

Caption

RIFA Act Reporting on Investments in Foreign Adversaries Act

Impact

If enacted, the RIFA Act will have significant implications for how higher education institutions manage and report their investment activities. Institutions that fail to comply with the reporting requirements face substantial fines and potential ineligibility for federal programs if they violate the rules for three consecutive years. The thresholds set for what constitutes a 'specified institution' are notably high, affecting only institutions with substantial endowments or significant foreign investment activities, thus focusing oversight on larger entities that could pose risks due to foreign affiliations.

Summary

House Bill 1023, titled the 'Reporting on Investments in Foreign Adversaries Act' or 'RIFA Act', aims to amend the Higher Education Act of 1965 by mandating certain institutions of higher education to disclose their foreign investments within their endowments. This bill requires specified institutions to file a disclosure report with the Secretary of Education by July 31 yearly, detailing investments of concern, their fair market value, and any capital gains associated with sales of such investments. By increasing transparency around foreign investments, the bill seeks to bolster national security measures concerning potential adversarial foreign influence through investment in U.S. educational institutions.

Contention

While proponents advocate for enhanced scrutiny on foreign investments, arguing it is essential for protecting U.S. interests and maintaining the integrity of educational institutions, critics express concerns about compliance burdens imposed on universities. The definition of 'foreign investment of concern' includes investments from countries deemed detrimental to U.S. national security, a classification that could be contentious and lead to interpretative challenges. Furthermore, there are apprehensions regarding the potential chilling effect on international partnerships and research funding as institutions navigate these new requirements.

Congress_id

119-HR-1023

Policy_area

Education

Introduced_date

2025-02-05

Companion Bills

US HB1048

Related bill Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act or the DETERRENT ActThis bill expands oversight and disclosure requirements related to foreign sources and institutions of higher education (IHEs).Specifically, the bill requires an IHE to annually disclose to the Department of Education (ED) any year in which the IHEreceives a gift from a foreign country of concern (e.g., China or Russia) or foreign entity of concern of any dollar amount;receives a gift or contract from a foreign source (other than a foreign country of concern or foreign entity of concern) that is valued at $50,000 or more, considered alone or in combination with all other gifts or contracts within a calendar year (current disclosure threshold is $250,000 or more), or which has an undetermined monetary value;enters into a contract with a foreign country of concern or foreign entity of concern after receiving a waiver for such contract; oris substantially controlled by a foreign source.Additionally, the billprohibits IHEs from entering into contracts with a foreign country of concern or with a foreign entity of concern without obtaining a waiver,requires certain IHEs to disclose gifts or contracts between covered individuals (e.g., researchers) and foreign sources, andrequires private IHEs with specified assets or investments to file annual investment disclosure reports.The bill requires ED to investigate possible violations of this bill and outlines the various penalties for each violation. Penalties may include losing eligibility for federal student financial aid.

Similar Bills

US HB1048

Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act or the DETERRENT ActThis bill expands oversight and disclosure requirements related to foreign sources and institutions of higher education (IHEs).Specifically, the bill requires an IHE to annually disclose to the Department of Education (ED) any year in which the IHEreceives a gift from a foreign country of concern (e.g., China or Russia) or foreign entity of concern of any dollar amount;receives a gift or contract from a foreign source (other than a foreign country of concern or foreign entity of concern) that is valued at $50,000 or more, considered alone or in combination with all other gifts or contracts within a calendar year (current disclosure threshold is $250,000 or more), or which has an undetermined monetary value;enters into a contract with a foreign country of concern or foreign entity of concern after receiving a waiver for such contract; oris substantially controlled by a foreign source.Additionally, the billprohibits IHEs from entering into contracts with a foreign country of concern or with a foreign entity of concern without obtaining a waiver,requires certain IHEs to disclose gifts or contracts between covered individuals (e.g., researchers) and foreign sources, andrequires private IHEs with specified assets or investments to file annual investment disclosure reports.The bill requires ED to investigate possible violations of this bill and outlines the various penalties for each violation. Penalties may include losing eligibility for federal student financial aid.

US HB817

Educational Choice for Children Act of 2025

US SB770

Social Security Expansion Act

US HB1577

Stop Fentanyl Money Laundering Act of 2025

US SB292

Educational Choice for Children Act of 2025

US HB910

Taiwan Non-Discrimination Act of 2025

US HB1069

Promoting Responsible Oversight To Eliminate Communist Teachings for Our Kids Act or the PROTECT Our Kids ActThis bill prohibits federal education funding for any elementary or secondary school that directly or indirectly receives support from the Chinese government.Specifically, the bill prohibits such funding for any school that (1) has a partnership in effect with a cultural or language institute funded by the Chinese government, including a Confucius Institute; (2) operates a learning center supported by the Chinese government (commonly referred to as a Confucius Classroom); or (3) receives support from an individual or entity acting on behalf of the Chinese government, including support in the form of teaching materials, personnel, funds, or other resources. However, the Department of Education (ED) may issue a waiver of the prohibition if a school has an existing contract with one of these entities and the school demonstrates that the contract is for the benefit of the school and promotes the security, stability, and economy of the United States.The bill directs ED to provide notice of the bill's requirements to schools, as well as guidance for achieving compliance with the requirements.

US HB2150

TRACE Act Tracking and Reporting Absent Community-Members Everywhere Act