IB
Union Calendar No. 9
119THCONGRESS
1
STSESSION H. R. 1048
[Report No. 119–16]
To amend the Higher Education Act of 1965 to strengthen disclosure require-
ments relating to foreign gifts and contracts, to prohibit contracts be-
tween institutions of higher education and certain foreign entities and
countries of concern, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY6, 2025
Mr. B
AUMGARTNER(for himself, Mr. MESSMER, Mr. OWENS, Mr. ALLEN, Mr.
K
ILEYof California, Mr. WALBERG, Mr. WILSONof South Carolina, Mr.
R
ULLI, Ms. FOXX, and Mr. GROTHMAN) introduced the following bill;
which was referred to the Committee on Education and Workforce
M
ARCH14, 2025
Additional sponsors: Mr. O
NDER, Ms. TENNEY, Mr. THOMPSONof Pennsyl-
vania, Mr. W
EBERof Texas, Mr. BARR, Mrs. HOUCHIN, Mr. BEANof
Florida, Mr. D
AVISof North Carolina, Mr. FINSTAD, Ms. PEREZ, Mr.
J
AMES, and Mr. MOOLENAAR
M
ARCH14, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 6, 2025]
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A BILL
To amend the Higher Education Act of 1965 to strengthen
disclosure requirements relating to foreign gifts and con-
tracts, to prohibit contracts between institutions of high-
er education and certain foreign entities and countries
of concern, and for other purposes.
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Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Defending Education 4
Transparency and Ending Rogue Regimes Engaging in Ne-5
farious Transactions Act’’ or the ‘‘DETERRENT Act’’. 6
SEC. 2. DISCLOSURES OF FOREIGN GIFTS. 7
(a) I
NGENERAL.—Section 117 of the Higher Edu-8
cation Act of 1965 (20 U.S.C. 1011f) is amended to read 9
as follows: 10
‘‘SEC. 117. DISCLOSURES OF FOREIGN GIFTS. 11
‘‘(a) D
ISCLOSUREREPORTS.— 12
‘‘(1) A
GGREGATE GIFTS AND CONTRACT DISCLO -13
SURES.—An institution shall file with the Secretary, 14
in accordance with subsection (b)(1), a disclosure re-15
port on July 31 of the calendar year immediately fol-16
lowing any calendar year in which— 17
‘‘(A) the institution receives a gift from, or 18
enters into a contract with, a foreign source 19
(other than a foreign country of concern or for-20
eign entity of concern)— 21
‘‘(i) the value of which is $50,000 or 22
more, considered alone or in combination 23
with all other gifts from, or contracts with, 24
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that foreign source within the calendar 1
year; or 2
‘‘(ii) the value of which is undeter-3
mined; or 4
‘‘(B) the institution— 5
‘‘(i) receives a gift from a foreign coun-6
try of concern or foreign entity of concern; 7
or 8
‘‘(ii) upon receiving a waiver under 9
section 117A to enter into a contract with 10
such a country or entity, enters into such 11
contract, without regard to the value of such 12
gift or contract. 13
‘‘(2) F
OREIGN SOURCE OWNERSHIP OR CONTROL 14
DISCLOSURES.—Notwithstanding paragraph (1), in 15
the case of an institution that is substantially con-16
trolled (as described in section 668.174(c)(3) of title 17
34, Code of Federal Regulations) (or successor regula-18
tions)) by a foreign source, the institution shall file 19
with the Secretary, in accordance with subsection 20
(b)(2), a disclosure report on July 31 of each year. 21
‘‘(3) T
REATMENT OF AFFILIATED ENTITIES .— 22
For purposes of this section, any gift to, or contract 23
with, an affiliated entity of an institution shall be 24
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considered a gift to, or contract with, respectively, 1
such institution. 2
‘‘(b) C
ONTENTS OFREPORT.— 3
‘‘(1) G
IFTS AND CONTRACTS.—Each report to the 4
Secretary required under subsection (a)(1) shall con-5
tain the following: 6
‘‘(A) With respect to a gift received from, or 7
a contract entered into with, any foreign 8
source— 9
‘‘(i) the terms of such gift or contract, 10
including— 11
‘‘(I) the name of the individual, 12
department, or other entity at the in-13
stitution receiving the gift or carrying 14
out the contract on behalf of the insti-15
tution; 16
‘‘(II) the foreign source’s intended 17
purpose of such gift or contract, or, in 18
the absence of such a purpose, the man-19
ner in which the institution intends to 20
use such gift or contract; and 21
‘‘(III) in the case of a restricted 22
or conditional gift or contract, a de-23
scription of the restrictions or condi-24
tions of such gift or contract; 25
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‘‘(ii) with respect to a gift— 1
‘‘(I) the total fair market dollar 2
amount or dollar value of the gift, as 3
of the date of submission of such re-4
port; and 5
‘‘(II) the date on which the insti-6
tution received such gift; 7
‘‘(iii) with respect to a contract— 8
‘‘(I) the total fair market dollar 9
amount or dollar value of the contract, 10
as of the date of submission of such re-11
port; 12
‘‘(II) the date on which the insti-13
tution enters into such contract; 14
‘‘(III) the date on which such con-15
tract first takes effect; 16
‘‘(IV) if the contract has a termi-17
nation date, such termination date; 18
and 19
‘‘(V) an assurance that the insti-20
tution will— 21
‘‘(aa) maintain an 22
unredacted copy of the contract 23
until the latest of— 24
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‘‘(AA) the date that is 5 1
years after the date on which 2
such contract first takes ef-3
fect; 4
‘‘(BB) the date on which 5
the contract terminates; or 6
‘‘(CC) the last day of 7
any period that applicable 8
State law requires a copy of 9
such contract to be main-10
tained; and 11
‘‘(bb) upon request of the 12
Secretary during an investigation 13
under section 117D(a)(1), produce 14
such an unredacted copy of the 15
contract; and 16
‘‘(iv) an assurance that in a case in 17
which information is required to be dis-18
closed under this section with respect to a 19
gift or contract that is not in English, such 20
information is translated into English in 21
accordance with subsection (c). 22
‘‘(B) With respect to a gift received from, or 23
a contract entered into with, a foreign source 24
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that is a foreign government (other than the gov-1
ernment of a foreign country of concern)— 2
‘‘(i) the name of such foreign govern-3
ment; 4
‘‘(ii) the department, agency, office, or 5
division of such foreign government that ap-6
proved such gift or contract, as applicable; 7
and 8
‘‘(iii) the physical mailing address of 9
such department, agency, office, or division. 10
‘‘(C) With respect to a gift received from, or 11
contract entered into with, a foreign source 12
(other than a foreign government subject to the 13
requirements of subparagraph (B))— 14
‘‘(i) the legal name of the foreign 15
source, or, if such name is not available, a 16
statement certified by a compliance officer 17
in accordance with section 117D(c) that the 18
institution has reasonably attempted to ob-19
tain such name; 20
‘‘(ii) in the case of a foreign source 21
that is a natural person, the country of citi-22
zenship of such person, or, if such country 23
is not known, the principal country of resi-24
dence of such person; 25
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‘‘(iii) in the case of a foreign source 1
that is a legal entity, the country in which 2
such entity is incorporated, or, if such in-3
formation is not available, the principal 4
place of business of such entity; 5
‘‘(iv) the physical mailing address of 6
such foreign source, or, if such address is 7
not available, a statement certified by a 8
compliance officer in accordance with sec-9
tion 117D(c) that the institution has rea-10
sonably attempted to obtain such address; 11
and 12
‘‘(v) any affiliation of the foreign 13
source to an organization that is designated 14
as a foreign terrorist organization pursuant 15
to section 219 of the Immigration and Na-16
tionality Act (8 U.S.C. 1189). 17
‘‘(D) With respect to a contract entered into 18
with a foreign source that is a foreign country 19
of concern or a foreign entity of concern— 20
‘‘(i) a complete and unredacted text of 21
the original contract, and if such original 22
contract is not in English, a translated 23
copy in accordance with subsection (c); 24
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‘‘(ii) a copy of the waiver received 1
under section 117A for such contract; and 2
‘‘(iii) the statement submitted by the 3
institution for purposes of receiving such a 4
waiver under section 117A(b)(2). 5
‘‘(2) F
OREIGN SOURCE OWNERSHIP OR CON -6
TROL.—Each report to the Secretary required under 7
subsection (a)(2) shall contain— 8
‘‘(A) the legal name and address of the for-9
eign source that owns or controls the institution; 10
‘‘(B) the date on which the foreign source 11
assumed ownership or control; and 12
‘‘(C) any changes in program or structure 13
resulting from the change in ownership or con-14
trol. 15
‘‘(c) T
RANSLATIONREQUIREMENTS.—Any informa-16
tion required to be disclosed under this section with respect 17
to a gift or contract that is not in English shall be trans-18
lated, for purposes of such disclosure, by a person that is 19
not an affiliated entity or agent of the foreign source in-20
volved with such gift or contract. 21
‘‘(d) P
UBLICINSPECTION.— 22
‘‘(1) D
ATABASE REQUIREMENT .—Beginning not 23
later than May 31 of the calendar year following the 24
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date of enactment of the DETERRENT Act, the Sec-1
retary shall— 2
‘‘(A) establish and maintain a searchable 3
database on a website of the Department, under 4
which all reports submitted under this section 5
(including any report submitted under this sec-6
tion before the date of enactment of the DETER-7
RENT Act)— 8
‘‘(i) are made publicly available (in 9
electronic and downloadable format), in-10
cluding any information provided in such 11
reports (other than the information prohib-12
ited from being publicly disclosed pursuant 13
to paragraph (2)); 14
‘‘(ii) can be individually identified 15
and compared; and 16
‘‘(iii) are searchable and sortable— 17
‘‘(I) by the institution that filed 18
such report; 19
‘‘(II) by the date on which the in-20
stitution filed such report; 21
‘‘(III) by the date on which the 22
institution received the gift which is 23
the subject of the report; 24
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‘‘(IV) by the date on which the in-1
stitution enters into the contract which 2
is the subject of the report; 3
‘‘(V) by the date on which such 4
contract first takes effect; 5
‘‘(VI) by the attributable country 6
of such gift or contract; 7
‘‘(VII) by the name of the foreign 8
source (other than a foreign source that 9
is a natural person); 10
‘‘(VIII) by the information de-11
scribed in subparagraph (C)(i); and 12
‘‘(IX) by the information de-13
scribed in subparagraph (C)(ii); 14
‘‘(B) not later than 30 days after receipt of 15
a disclosure report under this section, include 16
such report in such database; 17
‘‘(C) indicate, as part of the public record 18
of a report included in such database, whether 19
the report is with respect to a gift received from, 20
or a contract entered into with— 21
‘‘(i) a foreign source that is a foreign 22
government; or 23
‘‘(ii) a foreign source that is not a for-24
eign government; and 25
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‘‘(D) with respect to a disclosure report that 1
does not include the name or address of a foreign 2
source, indicate, as part of the public record of 3
such report included in such database, that such 4
report did not include such information. 5
‘‘(2) N
AME AND ADDRESS OF FOREIGN 6
SOURCE.—The Secretary shall not disclose the name 7
or address of a foreign source that is a natural person 8
(other than the attributable country of such foreign 9
source) included in a disclosure report— 10
‘‘(A) as part of the public record of such 11
disclosure report described in paragraph (1); or 12
‘‘(B) in response to a request under section 13
552 of title 5, United States Code (commonly 14
known as the ‘Freedom of Information Act’), 15
pursuant to subsection (b)(3) of such section. 16
‘‘(e) I
NTERAGENCYINFORMATIONSHARING.—Not later 17
than 30 days after receiving a disclosure report from an 18
institution in compliance with this section, the Secretary 19
shall transmit an unredacted copy of such report (that in-20
cludes the name and address of a foreign source disclosed 21
in such report) to the Director of the Federal Bureau of 22
Investigation, the Director of National Intelligence, the Di-23
rector of the Central Intelligence Agency, the Secretary of 24
State, the Secretary of Defense, the Attorney General, the 25
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Secretary of Commerce, the Secretary of Homeland Secu-1
rity, the Secretary of Energy, the Director of the National 2
Science Foundation, and the Director of the National Insti-3
tutes of Health. 4
‘‘(f) D
EFINITIONS.—In this section: 5
‘‘(1) A
FFILIATED ENTITY.—The term ‘affiliated 6
entity’, when used with respect to an institution, 7
means an entity or organization that operates pri-8
marily for the benefit of, or under the auspices of, 9
such institution, including a foundation of the insti-10
tution or a related entity (such as any educational, 11
cultural, or language entity). 12
‘‘(2) A
TTRIBUTABLE COUNTRY .—The term ‘at-13
tributable country’ means— 14
‘‘(A) the country of citizenship of a foreign 15
source who is a natural person, or, if such coun-16
try is unknown, the principal residence (as ap-17
plicable) of such foreign source; or 18
‘‘(B) the country of incorporation of a for-19
eign source that is a legal entity, or, if such 20
country is unknown, the principal place of busi-21
ness (as applicable) of such foreign source. 22
‘‘(3) C
ONTRACT.—The term ‘contract’— 23
‘‘(A) means— 24
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‘‘(i) any agreement for the acquisition 1
by purchase, lease, or barter of property or 2
services by the foreign source; 3
‘‘(ii) any affiliation, agreement, or 4
similar transaction with a foreign source 5
that involves the use or exchange of an in-6
stitution’s name, likeness, time, services, or 7
resources; and 8
‘‘(iii) any agreement for the acquisi-9
tion by purchase, lease, or barter, of prop-10
erty or services from a foreign source (other 11
than an arms-length agreement for such ac-12
quisition from a foreign source that is not 13
a foreign country of concern or a foreign en-14
tity of concern); and 15
‘‘(B) does not include an agreement made 16
between an institution and a foreign source re-17
garding any payment of one or more elements of 18
a student’s cost of attendance (as such term is 19
defined in section 472), unless such an agreement 20
is made for more than 15 students or is made 21
under a restricted or conditional contract. 22
‘‘(4) F
OREIGN SOURCE.—The term ‘foreign 23
source’ means— 24
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‘‘(A) a foreign government, including an 1
agency of a foreign government; 2
‘‘(B) a legal entity, governmental or other-3
wise, created under the laws of a foreign state or 4
states; 5
‘‘(C) a legal entity, governmental or other-6
wise, substantially controlled (as described in 7
section 668.174(c)(3) of title 34, Code of Federal 8
Regulations) (or successor regulations)) by a for-9
eign source; 10
‘‘(D) a natural person who is not a citizen 11
or a national of the United States or a trust ter-12
ritory or protectorate thereof; 13
‘‘(E) an agent of a foreign source, includ-14
ing— 15
‘‘(i) a subsidiary or affiliate of a for-16
eign legal entity, acting on behalf of a for-17
eign source; 18
‘‘(ii) a person that operates primarily 19
for the benefit of, or under the auspices of, 20
a foreign source, including a foundation or 21
a related entity (such as any educational, 22
cultural, or language entity); and 23
‘‘(iii) a person who is an agent of a 24
foreign principal (as such term is defined 25
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in section 1 of the Foreign Agents Registra-1
tion Act of 1938 (22 U.S.C. 611)); and 2
‘‘(F) an international organization (as such 3
term is defined in the International Organiza-4
tions Immunities Act (22 U.S.C. 288)). 5
‘‘(5) G
IFT.—The term ‘gift’— 6
‘‘(A) means any gift of money, property, re-7
sources, staff, or services; and 8
‘‘(B) does not include— 9
‘‘(i) any payment of one or more ele-10
ments of a student’s cost of attendance (as 11
such term is defined in section 472) to an 12
institution by, or scholarship from, a for-13
eign source who is a natural person, acting 14
in their individual capacity and not as an 15
agent for, at the request or direction of, or 16
on behalf of, any person or entity (except 17
the student), made for not more than 15 18
students, and that is not made under a re-19
stricted or conditional contract with such 20
foreign source; or 21
‘‘(ii) assignment or license of registered 22
industrial and intellectual property rights, 23
such as patents, utility models, trademarks, 24
or copyrights, or technical assistance, that 25
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are not associated with a category listed in 1
the Commerce Control List maintained by 2
the Bureau of Industry and Security of the 3
Department of Commerce and set forth in 4
Supplement No. 1 to part 774 of title 15, 5
Code of Federal Regulations (or successor 6
regulations); or 7
‘‘(iii) decorations (as such term is de-8
fined in section 7342(a) of title 5, United 9
States Code). 10
‘‘(6) R
ESTRICTED OR CONDITIONAL GIFT OR CON -11
TRACT.—The term ‘restricted or conditional gift or 12
contract’ means any endowment, gift, grant, contract, 13
award, present, or property of any kind which in-14
cludes provisions regarding— 15
‘‘(A) the employment, assignment, or termi-16
nation of faculty; 17
‘‘(B) the establishment of departments, cen-18
ters, institutes, instructional programs, research 19
or lecture programs, or new faculty positions; 20
‘‘(C) the selection, admission, or education 21
of students; 22
‘‘(D) the award of grants, loans, scholar-23
ships, fellowships, or other forms of financial aid 24
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restricted to students of a specified country, reli-1
gion, sex, ethnic origin, or political opinion; or 2
‘‘(E) any other restriction on the use of a 3
gift or contract.’’. 4
(b) P
ROHIBITION ONCONTRACTSWITHCERTAINFOR-5
EIGNENTITIES ANDCOUNTRIES.—Part B of title I of the 6
Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is 7
amended by inserting after section 117 the following: 8
‘‘SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN 9
FOREIGN ENTITIES AND COUNTRIES. 10
‘‘(a) I
NGENERAL.—An institution shall not enter into 11
a contract with a foreign country of concern or a foreign 12
entity of concern. 13
‘‘(b) W
AIVERS.— 14
‘‘(1) I
N GENERAL.—A waiver issued under this 15
section to an institution with respect to a contract 16
shall only— 17
‘‘(A) waive the prohibition under subsection 18
(a) for a 1-year period; and 19
‘‘(B) apply to the terms and conditions of 20
the proposed contract submitted as part of the re-21
quest for such waiver. 22
‘‘(2) S
UBMISSION.— 23
‘‘(A) F
IRST WAIVER REQUESTS.— 24
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‘‘(i) IN GENERAL.—An institution that 1
desires to enter into a contract with a for-2
eign entity of concern or a foreign country 3
of concern may submit to the Secretary, not 4
later than 120 days before the institution 5
enters into such a contract, a request to 6
waive the prohibition under subsection (a) 7
with respect to such contract. 8
‘‘(ii) C
ONTENTS OF WAIVER RE -9
QUEST.—A waiver request submitted by an 10
institution under clause (i) shall include— 11
‘‘(I) the complete and unredacted 12
text of the proposed contract for which 13
the waiver is being requested, and if 14
such original contract is not in 15
English, a translated copy of the text 16
into English (in a manner that com-17
plies with section 117(c)); and 18
‘‘(II) a statement that— 19
‘‘(aa) is certified by a com-20
pliance officer of the institution 21
designated in accordance with sec-22
tion 117D(c); and 23
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‘‘(bb) includes information 1
that demonstrates that such con-2
tract— 3
‘‘(AA) is for the benefit 4
of the institution’s mission 5
and students; and 6
‘‘(BB) will promote the 7
security, stability, and eco-8
nomic vitality of the United 9
States. 10
‘‘(B) R
ENEWAL WAIVER REQUESTS .— 11
‘‘(i) I
N GENERAL.—An institution 12
that, pursuant to a waiver issued under this 13
section, has entered into a contract, the 14
term of which is longer than the 1-year 15
waiver period and the terms and conditions 16
of which remain the same as the proposed 17
contract submitted as part of the request for 18
such waiver may submit, not later than 120 19
days before the expiration of such waiver 20
period, a request for a renewal of such 21
waiver for an additional 1-year period 22
(which shall include any information re-23
quested by the Secretary). 24
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‘‘(ii) TERMINATION.—If the institution 1
fails to submit a request under clause (i) or 2
is not granted a renewal under such clause, 3
such institution shall terminate such con-4
tract on the last day of the original 1-year 5
waiver period. 6
‘‘(3) W
AIVER ISSUANCE.—The Secretary— 7
‘‘(A) not later than 60 days before an insti-8
tution enters into a contract pursuant to a waiv-9
er request under paragraph (2)(A), or before a 10
contract described in paragraph (2)(B)(i) is re-11
newed pursuant to a renewal request under such 12
paragraph, shall notify the institution— 13
‘‘(i) if the waiver or renewal will be 14
issued by the Secretary; and 15
‘‘(ii) in a case in which the waiver or 16
renewal will be issued, the date on which 17
the 1-year waiver period starts; and 18
‘‘(B) may only issue a waiver under this 19
section to an institution if the Secretary deter-20
mines, in consultation with each individual list-21
ed in section 117(e), that the contract for which 22
the waiver is being requested— 23
‘‘(i) is for the benefit of the institu-24
tion’s mission and students; and 25
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‘‘(ii) will promote the security, sta-1
bility, and economic vitality of the United 2
States. 3
‘‘(4) D
ISCLOSURE.—Not less than 2 weeks prior 4
to issuing a waiver under paragraph (2), the Sec-5
retary shall notify the authorizing committees of the 6
intent to issue the waiver, including a justification 7
for the waiver. 8
‘‘(c) D
ESIGNATIONDURINGCONTRACTTERM.—In the 9
case of an institution that enters into a contract with a 10
foreign source that is not a foreign country of concern or 11
a foreign entity of concern but which, during the term of 12
such contract, is designated as a foreign country of concern 13
or foreign entity of concern, such institution shall terminate 14
such contract not later than 60 days after the Secretary 15
notifies the institution of such designation. 16
‘‘(d) C
ONTRACTSPRIOR TODATE OFENACTMENT.— 17
‘‘(1) I
N GENERAL.—In the case of an institution 18
that has entered into a contract with a foreign coun-19
try of concern or foreign entity of concern prior to the 20
date of enactment of the DETERRENT Act— 21
‘‘(A) the institution shall as soon as prac-22
ticable, but not later than 30 days after such 23
date of enactment, submit to the Secretary a 24
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waiver request in accordance with clause (ii) of 1
subsection (b)(2)(A); and 2
‘‘(B) the Secretary shall, upon receipt of the 3
request submitted under such clause, issue a 4
waiver to the institution for a period beginning 5
on the date on which the waiver is issued and 6
ending on the sooner of— 7
‘‘(i) the date that is 1 year after the 8
date of enactment of the DETERRENT Act; 9
or 10
‘‘(ii) the date on which the contract 11
terminates. 12
‘‘(2) R
ENEWAL.—An institution that has entered 13
into a contract described in paragraph (1), the term 14
of which is longer than the waiver period described in 15
subparagraph (B) of such paragraph and the terms 16
and conditions of which remain the same as the con-17
tract submitted as part of the request required under 18
subparagraph (A) of such paragraph, may submit a 19
request for renewal of the waiver issued under such 20
paragraph in accordance with subsection (b)(2)(B). 21
‘‘(e) C
ONTRACTDEFINED.—The term ‘contract’ has the 22
meaning given such term in section 117(f).’’. 23
(c) I
NTERAGENCYINFORMATIONSHARING.—Not later 24
than 90 days after the date of enactment of this Act, the 25
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Secretary of Education shall transmit to each individual 1
listed in section 117(e) of the Higher Education Act of 1965, 2
as amended by this Act— 3
(1) any report received by the Department of 4
Education under section 117 of the Higher Education 5
Act of 1965 (20 U.S.C. 1011f) prior to the date of en-6
actment of this Act; and 7
(2) any report, document, or other record gen-8
erated by the Department of Education in the course 9
of an investigation— 10
(A) of an institution with respect to the 11
compliance of such institution with such section; 12
and 13
(B) initiated prior to the date of enactment 14
of this Act. 15
SEC. 3. POLICY REGARDING CONFLICTS OF INTEREST 16
FROM FOREIGN GIFTS AND CONTRACTS. 17
The Higher Education Act of 1965 (20 U.S.C. 1001 18
et seq.), as amended by the preceding section, is further 19
amended by inserting after section 117A the following: 20
‘‘SEC. 117B. INSTITUTIONAL POLICY REGARDING FOREIGN 21
GIFTS AND CONTRACTS TO FACULTY AND 22
STAFF. 23
‘‘(a) R
EQUIREMENT TOMAINTAINPOLICY ANDDATA-24
BASE.—Beginning not later than 90 days after the date of 25
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enactment of the DETERRENT Act, each institution de-1
scribed in subsection (b) shall maintain— 2
‘‘(1) a policy requiring covered individuals em-3
ployed at the institution to disclose in a report to 4
such institution on July 31 of each calendar year that 5
begins after the year in which such enactment date 6
occurs— 7
‘‘(A) any gift received from a foreign source 8
in the previous calendar year, the value of which 9
is greater than the minimal value (as such term 10
is defined in section 7342(a) of title 5, United 11
States Code) or is of undetermined value, and 12
including the date on which the gift was re-13
ceived; 14
‘‘(B) any contract with a foreign source 15
(other than a foreign country of concern or for-16
eign entity of concern) entered into or in effect 17
during the previous calendar year, the value of 18
which is $5,000 or more, considered alone or in 19
combination with all other contracts with that 20
foreign source within the calendar year, and in-21
cluding the date on which such contract is en-22
tered into, the date on which the contract first 23
takes effect, and, as applicable, the date on which 24
such contract terminates; 25
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‘‘(C) any contract with a foreign source 1
(other than a foreign country of concern or for-2
eign entity of concern) entered into or in effect 3
during the previous calendar year that has an 4
undetermined monetary value, and including the 5
date on which such contract is entered into, the 6
date on which the contract first takes effect, and, 7
as applicable, the date on which such contract 8
terminates; and 9
‘‘(D) any contract entered into or in effect 10
with a foreign country of concern or foreign enti-11
ty of concern during the previous calendar year, 12
the value of which is $0 or more or which has 13
an undetermined monetary value, and includ-14
ing— 15
‘‘(i) the date on which such contract is 16
entered into; 17
‘‘(ii) the date on which the contract 18
first takes effect; 19
‘‘(iii) if the contract has a termination 20
date, such termination date; and 21
‘‘(iv) the full text of such contract and 22
any addenda; 23
‘‘(2) a publicly available and searchable database 24
(in electronic and downloadable format), on a website 25
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of the institution, of the information required to be 1
disclosed under paragraph (1) (other than the name 2
or any other personally identifiable information of a 3
covered individual) that— 4
‘‘(A) makes available the information dis-5
closed under paragraph (1) (other than the name 6
or any other personally identifiable information 7
of a covered individual) beginning on the date 8
that is 30 days after receipt of the report under 9
such paragraph containing such information 10
and until the latest of— 11
‘‘(i) the date that is 5 years after the 12
date on which— 13
‘‘(I) a gift referred to in para-14
graph (1)(A) is received; or 15
‘‘(II) a contract referred to in sub-16
paragraph (B), (C) or (D) of para-17
graph (1) first takes effect; or 18
‘‘(ii) the date on which a contract re-19
ferred to in subparagraph (B), (C) or (D) 20
of paragraph (1) terminates; and 21
‘‘(B) is searchable and sortable— 22
‘‘(i) if the subject of the disclosure is a 23
gift, by the date on which the gift is re-24
ceived; 25
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‘‘(ii) if the subject of the disclosure is 1
a contract— 2
‘‘(I) by the date on which such 3
contract is entered into; and 4
‘‘(II) by the date on which such 5
contract first takes effect; 6
‘‘(iii) by the attributable country with 7
respect to which information is being dis-8
closed; 9
‘‘(iv) by the narrowest of the depart-10
ment, school, or college of the institution, as 11
applicable, for which the individual making 12
the disclosure works; and 13
‘‘(v) by the name of the foreign source 14
(other than a foreign source who is a nat-15
ural person); and 16
‘‘(3) an effective plan to identify and manage 17
potential information gathering by foreign sources 18
through espionage targeting covered individuals that 19
may arise from gifts received from, or contracts en-20
tered into with, a foreign source, including through 21
the use of— 22
‘‘(A) periodic communications; 23
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‘‘(B) accurate reporting under paragraph 1
(2) of the information required to be disclosed 2
under paragraph (1); and 3
‘‘(C) enforcement of the policy described in 4
paragraph (1); and 5
‘‘(4) for purposes of investigations under section 6
117D(a)(1) or responses to requests under section 552 7
of title 5, United States Code (commonly known as 8
the ‘Freedom of Information Act’), a record of the 9
names of the individuals making disclosures under 10
paragraph (1). 11
‘‘(b) I
NSTITUTIONS.—An institution shall be subject to 12
the requirements of this section if such institution— 13
‘‘(1) is an eligible institution for the purposes of 14
any program authorized under title IV; and 15
‘‘(2)(A) received more than $50,000,000 in Fed-16
eral funds in any of the previous five calendar years 17
to support (in whole or in part) research and develop-18
ment (as determined by the institution and measured 19
by the Higher Education Research and Development 20
Survey of the National Center for Science and Engi-21
neering Statistics); or 22
‘‘(B) receives funds under title VI. 23
‘‘(c) D
EFINITIONS.—In this section— 24
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‘‘(1) the terms ‘attributable country’, ‘foreign 1
source’, and ‘gift’ have the meanings given such terms 2
in section 117(f); 3
‘‘(2) the term ‘contract’ means— 4
‘‘(A) any agreement for the acquisition by 5
purchase, lease, or barter of property or services 6
by the foreign source; 7
‘‘(B) any affiliation, agreement, or similar 8
transaction with a foreign source that involves 9
the use or exchange of an institution’s name, 10
likeness, time, services, or resources; and 11
‘‘(C) any agreement for the acquisition by 12
purchase, lease, or barter, of property or services 13
from a foreign source (other than an arms-length 14
agreement for such acquisition from a foreign 15
source that is not a foreign country of concern 16
or a foreign entity of concern); and 17
‘‘(3) the term ‘covered individual’— 18
‘‘(A) has the meaning given such term in 19
section 223(d) of the William M. (Mac) Thorn-20
berry National Defense Authorization Act for 21
Fiscal Year 2021 (42 U.S.C. 6605); and 22
‘‘(B) shall be interpreted in accordance with 23
the Guidance for Implementing National Secu-24
rity Presidential Memorandum 33 (NSPM–33) 25
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on National Security Strategy for United States 1
Government-Supported Research and Develop-2
ment published by the Subcommittee on Research 3
Security and the Joint Committee on the Re-4
search Environment in January 2022 (or any 5
successor guidance).’’. 6
SEC. 4. INVESTMENT DISCLOSURE REPORT. 7
The Higher Education Act of 1965 (20 U.S.C. 1001 8
et seq.), as amended by this Act, is further amended by in-9
serting after section 117B the following: 10
‘‘SEC. 117C. INVESTMENT DISCLOSURE REPORT. 11
‘‘(a) I
NVESTMENTDISCLOSUREREPORT.—A specified 12
institution shall file a disclosure report in accordance with 13
subsection (b) with the Secretary on each July 31 imme-14
diately following any calendar year in which the specified 15
institution purchases, sells, or holds (directly or indirectly 16
through any chain of ownership) one or more investments 17
of concern. 18
‘‘(b) C
ONTENTS OFREPORT.—Each report to the Sec-19
retary required by subsection (a) shall contain, with respect 20
to the calendar year preceding the calendar year in which 21
such report is filed, the following information: 22
‘‘(1) A list of the investments of concern pur-23
chased, sold, or held during such calendar year. 24
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‘‘(2) The aggregate fair market value of all in-1
vestments of concern held as of the close of such cal-2
endar year. 3
‘‘(3) The combined value of all investments of 4
concern sold over the course of such calendar year, as 5
measured by the fair market value of such invest-6
ments at the time of the sale. 7
‘‘(4) The combined value of all capital gains 8
from such sales of investments of concern. 9
‘‘(c) T
REATMENT OF CERTAINPOOLEDINVEST-10
MENTS.— 11
‘‘(1) P
OOLED INVESTMENT CLASSIFICATION .— 12
‘‘(A) I
N GENERAL.—For purposes of this 13
section, except as provided in subparagraph (B), 14
a specified interest acquired by a specified insti-15
tution in a regulated investment company, ex-16
change traded fund, or any other pooled invest-17
ment that holds an investment of concern shall 18
be treated as an investment of concern and shall 19
be reported pursuant to paragraph (2)(A). 20
‘‘(B) C
ERTIFICATION OF POOLED INVEST -21
MENT.—Notwithstanding subparagraph (A), such 22
specified interest shall not be subject to subpara-23
graph (A) if the Secretary certifies, pursuant to 24
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paragraph (2)(B), that such pooled investment is 1
not holding an investment of concern. 2
‘‘(2) P
ROCEDURES.—The Secretary, after con-3
sultation with the Secretary of the Treasury and the 4
Securities and Exchange Commission, shall establish 5
procedures under which a pooled investment described 6
in paragraph (1)— 7
‘‘(A) shall be reported in accordance with 8
the requirements of subsection (b); and 9
‘‘(B) may be certified under paragraph 10
(1)(B) as not holding an investment of concern. 11
‘‘(d) T
REATMENT OFRELATEDORGANIZATIONS.—For 12
purposes of this section, assets held by any related organiza-13
tion (as defined in section 4968(d)(2) of the Internal Rev-14
enue Code of 1986) with respect to a specified institution 15
shall be treated as held by such specified institution, except 16
that— 17
‘‘(1) such assets shall not be taken into account 18
with respect to more than 1 specified institution; and 19
‘‘(2) unless such organization is controlled by 20
such institution or is described in section 509(a)(3) of 21
the Internal Revenue Code of 1986 with respect to 22
such institution, assets which are not intended or 23
available for the use or benefit of such specified insti-24
tution shall not be taken into account. 25
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‘‘(e) VALUATION OFDEBT.—For purposes of this sec-1
tion, the fair market value of any debt shall be the principal 2
amount of such debt. 3
‘‘(f) R
EGULATIONS.—The Secretary, after consultation 4
with the Secretary of the Treasury and the Securities and 5
Exchange Commission, may issue such regulations or other 6
guidance as may be necessary or appropriate to carry out 7
the purposes of this section, including regulations or other 8
guidance providing for the proper application of this sec-9
tion with respect to certain regulated investment compa-10
nies, exchange traded funds, and pooled investments. 11
‘‘(g) D
ATABASEREQUIREMENT.—Beginning not later 12
than May 31 of the calendar year following the date of en-13
actment of the DETERRENT Act, the Secretary shall— 14
‘‘(1) establish and maintain a searchable data-15
base on a website of the Department, under which all 16
reports submitted under this section— 17
‘‘(A) are made publicly available (in elec-18
tronic and downloadable format), including any 19
information provided in such reports; 20
‘‘(B) can be individually identified and 21
compared; and 22
‘‘(C) are searchable and sortable; and 23
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‘‘(2) not later than 30 days after receipt of a dis-1
closure report under this section, include such report 2
in such database. 3
‘‘(h) D
EFINITIONS.—In this section: 4
‘‘(1) I
NVESTMENT OF CONCERN .— 5
‘‘(A) I
N GENERAL.—The term ‘investment of 6
concern’ means any specified interest with re-7
spect to any of the following: 8
‘‘(i) A foreign country of concern. 9
‘‘(ii) A foreign entity of concern. 10
‘‘(B) S
PECIFIED INTEREST .—The term 11
‘specified interest’ means, with respect to any en-12
tity— 13
‘‘(i) stock or any other equity or profits 14
interest of such entity; 15
‘‘(ii) debt issued by such entity; and 16
‘‘(iii) any contract or derivative with 17
respect to any property described in clause 18
(i) or (ii). 19
‘‘(2) S
PECIFIED INSTITUTION.— 20
‘‘(A) I
N GENERAL.—The term ‘specified in-21
stitution’, as determined with respect to any cal-22
endar year, means an institution that— 23
‘‘(i) is not a public institution; and 24
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‘‘(ii) at the close of such calendar year, 1
holds— 2
‘‘(I) assets (other than those assets 3
which are used directly in carrying out 4
the institution’s exempt purpose) the 5
aggregate fair market value of which is 6
in excess of $6,000,000,000; and 7
‘‘(II) investments of concern the 8
aggregate fair market value of which is 9
in excess of $250,000,000. 10
‘‘(B) R
EFERENCES TO CERTAIN TERMS .— 11
For the purpose of applying the definition under 12
subparagraph (A), the terms ‘aggregate fair mar-13
ket value’ and ‘assets which are used directly in 14
carrying out the institution’s exempt purpose’ 15
shall be applied in the same manner as such 16
terms are applied for the purposes of section 17
4968(b)(1)(D) of the Internal Revenue Code of 18
1986.’’. 19
SEC. 5. ENFORCEMENT AND OTHER GENERAL PROVISIONS. 20
(a) E
NFORCEMENT AND OTHERGENERALPROVI-21
SIONS.—The Higher Education Act of 1965 (20 U.S.C. 22
1001 et seq.), as amended by this Act, is further amended 23
by inserting after section 117C the following: 24
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‘‘SEC. 117D. ENFORCEMENT; SINGLE POINT-OF-CONTACT; 1
INSTITUTIONAL REQUIREMENTS. 2
‘‘(a) E
NFORCEMENT.— 3
‘‘(1) I
NVESTIGATION.—The Secretary (acting 4
through the General Counsel of the Department) shall 5
conduct investigations of possible violations of sec-6
tions 117, 117A, 117B, 117C, and subsection (c) of 7
this section by institutions and, whenever it appears 8
that an institution has knowingly or willfully failed 9
to comply with a requirement of any of such provi-10
sions (including any rule or regulation promulgated 11
under any such provision), shall request that the At-12
torney General bring a civil action in accordance 13
with paragraph (2). 14
‘‘(2) C
IVIL ACTION.—Whenever it appears that 15
an institution has knowingly or willfully failed to 16
comply with a requirement of any of the provisions 17
listed in paragraph (1) (including any rule or regula-18
tion promulgated under any such provision) based on 19
an investigation under such paragraph, a civil action 20
shall be brought by the Attorney General, at the re-21
quest of the Secretary, in an appropriate district 22
court of the United States, or the appropriate United 23
States court of any territory or other place subject to 24
the jurisdiction of the United States, to request such 25
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court to compel compliance with the requirement of 1
the provision that has been violated. 2
‘‘(3) C
OSTS AND OTHER FINES .—An institution 3
that is compelled to comply with a requirement of a 4
provision listed in paragraph (1) pursuant to para-5
graph (2) shall— 6
‘‘(A) pay to the Treasury of the United 7
States the full costs to the United States of ob-8
taining compliance with the requirement of such 9
provision, including all associated costs of inves-10
tigation and enforcement; and 11
‘‘(B) if applicable, be subject to the applica-12
ble fines described in paragraph (4). 13
‘‘(4) F
INES FOR VIOLATIONS .—The Secretary 14
shall impose a fine on an institution that is com-15
pelled to comply with a requirement of a section list-16
ed in paragraph (1) pursuant to paragraph (2) as 17
follows: 18
‘‘(A) S
ECTION 117.— 19
‘‘(i) F
IRST-TIME VIOLATIONS.—In the 20
case of an institution that is compelled to 21
comply with a requirement of section 117 22
pursuant to a civil action described in 23
paragraph (2), and that has not previously 24
been compelled to comply with any such re-25
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quirement pursuant to such a civil action, 1
the Secretary shall impose a fine on the in-2
stitution for such violation as follows: 3
‘‘(I) In the case of an institution 4
that knowingly or willfully fails to 5
comply with a reporting requirement 6
under subsection (a)(1) of section 117, 7
such fine shall be in an amount that 8
is— 9
‘‘(aa) for each gift or con-10
tract with determinable value that 11
is the subject of such a failure to 12
comply, the greater of— 13
‘‘(AA) $50,000; or 14
‘‘(BB) the monetary 15
value of such gift or contract; 16
or 17
‘‘(bb) for each gift or contract 18
of no value or of indeterminable 19
value, not less than 1 percent and 20
not more than 10 percent of the 21
total amount of Federal funds re-22
ceived by the institution under 23
this Act for the most recent fiscal 24
year. 25
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‘‘(II) In the case of an institution 1
that knowingly or willfully fails to 2
comply with the reporting requirement 3
under subsection (a)(2) of section 117, 4
such fine shall be in an amount that is 5
not less than 10 percent of the total 6
amount of Federal funds received by 7
the institution under this Act for the 8
most recent fiscal year. 9
‘‘(ii) S
UBSEQUENT VIOLATIONS .—In 10
the case of an institution that has pre-11
viously been compelled to comply with a re-12
quirement of section 117 pursuant to a civil 13
action described in paragraph (2), and is 14
subsequently compelled to comply with such 15
a requirement pursuant to a subsequent 16
civil action described in paragraph (2), the 17
Secretary shall impose a fine on the institu-18
tion as follows: 19
‘‘(I) In the case of an institution 20
that knowingly or willfully fails to 21
comply with a reporting requirement 22
under subsection (a)(1) of section 117, 23
such fine shall be in an amount that 24
is— 25
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‘‘(aa) for each gift or con-1
tract with determinable value that 2
is the subject of such a failure to 3
comply, the greater of— 4
‘‘(AA) $100,000; or 5
‘‘(BB) twice the mone-6
tary value of such gift or 7
contract; or 8
‘‘(bb) for each gift or contract 9
of no value or of indeterminable 10
value, not less than 5 percent and 11
not more than 10 percent of the 12
total amount of Federal funds re-13
ceived by the institution under 14
this Act for the most recent fiscal 15
year. 16
‘‘(II) In the case of an institution 17
that knowingly or willfully fails to 18
comply with a reporting requirement 19
under subsection (a)(2) of section 117, 20
such fine shall be in an amount that is 21
not less than 20 percent of the total 22
amount of Federal funds received by 23
the institution under this Act for the 24
most recent fiscal year. 25
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‘‘(B) SECTION 117A.— 1
‘‘(i) F
IRST-TIME VIOLATIONS.—In the 2
case of an institution that is compelled to 3
comply with a requirement of section 117A 4
pursuant to a civil action described in 5
paragraph (2), and that has not previously 6
been compelled to comply with any such re-7
quirement pursuant to such a civil action, 8
the Secretary shall impose a fine on the in-9
stitution in an amount that is not less than 10
5 percent and not more than 10 percent of 11
the total amount of Federal funds received 12
by the institution under this Act for the 13
most recent fiscal year. 14
‘‘(ii) S
UBSEQUENT VIOLATIONS .—In 15
the case of an institution that has pre-16
viously been compelled to comply with a re-17
quirement of section 117A pursuant to a 18
civil action described in paragraph (2), and 19
is subsequently compelled to comply with 20
such a requirement pursuant to a subse-21
quent civil action described in paragraph 22
(2), the Secretary shall impose a fine on the 23
institution in an amount that is not less 24
than 20 percent of the total amount of Fed-25
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eral funds received by the institution under 1
this Act for the most recent fiscal year. 2
‘‘(C) S
ECTION 117B.— 3
‘‘(i) F
IRST-TIME VIOLATIONS.—In the 4
case of an institution that is compelled to 5
comply with a requirement of section 117B 6
pursuant to a civil action described in 7
paragraph (2), and that has not previously 8
been compelled to comply with any such re-9
quirement pursuant to such a civil action, 10
the Secretary shall impose a fine on the in-11
stitution for such violation in an amount 12
that is the greater of— 13
‘‘(I) $250,000; or 14
‘‘(II) the total amount of gifts or 15
contracts that the institution is com-16
pelled to report pursuant to such civil 17
action. 18
‘‘(ii) S
UBSEQUENT VIOLATIONS .—In 19
the case of an institution that has pre-20
viously been compelled to comply with a re-21
quirement of section 117B pursuant to a 22
civil action described in paragraph (2), and 23
is subsequently compelled to comply with 24
such a requirement pursuant to a subse-25
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quent civil action described in paragraph 1
(2), the Secretary shall impose a fine on the 2
institution in an amount that is the greater 3
of— 4
‘‘(I) $500,000; or 5
‘‘(II) twice the total amount of 6
gifts or contracts that the institution is 7
compelled to report pursuant to such 8
civil action. 9
‘‘(D) S
ECTION 117C.— 10
‘‘(i) F
IRST-TIME VIOLATIONS.—In the 11
case of an institution that is compelled to 12
comply with a requirement of section 117C 13
pursuant to a civil action described in 14
paragraph (2), and that has not previously 15
been compelled to comply with any such re-16
quirement pursuant to such a civil action, 17
the Secretary shall impose a fine on the in-18
stitution in an amount that is not less than 19
50 percent and not more than 100 percent 20
of the sum of— 21
‘‘(I) the aggregate fair market 22
value of all investments of concern held 23
by such institution as of the close of the 24
final calendar year for which the insti-25
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•HR 1048 RH
tution is compelled to comply with 1
such requirement pursuant to such 2
civil action; and 3
‘‘(II) the combined value of all in-4
vestments of concern sold over the 5
course of all the calendar years for 6
which the institution is compelled to 7
comply with such requirement pursu-8
ant to such civil action, as measured 9
by the fair market value of such invest-10
ments at the time of the sale. 11
‘‘(ii) S
UBSEQUENT VIOLATIONS .—In 12
the case of an institution that has pre-13
viously been compelled to comply with a re-14
quirement of section 117C pursuant to a 15
civil action described in paragraph (2), and 16
is subsequently compelled to comply with 17
such a requirement pursuant to a subse-18
quent civil action described in paragraph 19
(2), the Secretary shall impose a fine on the 20
institution in an amount that is not less 21
than 100 percent and not more than 200 22
percent of the sum of— 23
‘‘(I) the aggregate fair market 24
value of all investments of concern held 25
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•HR 1048 RH
by such institution as of the close of the 1
final calendar year for which the insti-2
tution is compelled to comply with 3
such requirement pursuant to such sub-4
sequent civil action; and 5
‘‘(II) the combined value of all in-6
vestments of concern over the course of 7
all the calendar years for which the in-8
stitution is compelled to comply with 9
such requirement pursuant to such sub-10
sequent civil action, as measured by 11
the fair market value of such invest-12
ments at the time of the sale. 13
‘‘(E) I
NELIGIBILTY FOR WAIVER .—In the 14
case of an institution that is fined pursuant to 15
subparagraph (A)(ii), (B)(ii), (C)(ii), or (D)(ii), 16
the Secretary shall prohibit the institution from 17
obtaining a waiver, or a renewal of a waiver, 18
under section 117A. 19
‘‘(b) S
INGLEPOINT-OF-CONTACT AT THE DEPART-20
MENT.—The Secretary shall maintain a single point-of-con-21
tact at the Department to— 22
‘‘(1) receive and respond to inquiries and re-23
quests for technical assistance from institutions re-24
garding compliance with the requirements of sections 25
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•HR 1048 RH
117, 117A, 117B, 117C, and subsection (c) of this sec-1
tion; 2
‘‘(2) coordinate and implement technical im-3
provements to the database described in section 4
117(d)(1), including— 5
‘‘(A) improving upload functionality by al-6
lowing for batch reporting, including by allow-7
ing institutions to upload one file with all re-8
quired information into the database; 9
‘‘(B) publishing and maintaining a data-10
base users guide annually, including information 11
on how to edit an entry and how to report er-12
rors; 13
‘‘(C) creating a standing user group (to 14
which chapter 10 of title 5, United States Code, 15
shall not apply) to discuss possible database im-16
provements, which group shall— 17
‘‘(i) include at least— 18
‘‘(I) 3 members representing pub-19
lic institutions with high or very high 20
levels of research activity (as defined 21
by the National Center for Education 22
Statistics); 23
‘‘(II) 2 members representing pri-24
vate, nonprofit institutions with high 25
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•HR 1048 RH
or very high levels of research activity 1
(as so defined); 2
‘‘(III) 2 members representing 3
proprietary institutions of higher edu-4
cation (as defined in section 102(b)); 5
and 6
‘‘(IV) 2 members representing 7
area career and technical education 8
schools (as defined in subparagraph 9
(C) or (D) of section 3(3) of the Carl 10
D. Perkins Career and Technical Edu-11
cation Act of 2006 (20 U.S.C. 12
2302(3))); and 13
‘‘(ii) meet at least twice a year with 14
officials from the Department to discuss 15
possible database improvements; 16
‘‘(D) publishing, on a publicly available 17
website, recommended database improvements 18
following each meeting described in subpara-19
graph (C)(ii); and 20
‘‘(E) responding, on a publicly available 21
website, to each recommendation published under 22
subparagraph (D) as to whether or not the De-23
partment will implement the recommendation, 24
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•HR 1048 RH
including the rationale for either approving or 1
rejecting the recommendation; 2
‘‘(3) provide, every 90 days after the date of en-3
actment of the DETERRENT Act, status updates on 4
any pending or completed investigations and civil ac-5
tions under subsection (a)(1) to— 6
‘‘(A) the authorizing committees; and 7
‘‘(B) any institution that is the subject of 8
such investigation or action; 9
‘‘(4) maintain, on a publicly accessible website— 10
‘‘(A) a full comprehensive list of all foreign 11
countries of concern and foreign entities of con-12
cern; and 13
‘‘(B) the date on which the last update was 14
made to such list; and 15
‘‘(5) not later than 7 days after making an up-16
date to the list maintained under paragraph (4)(A), 17
notify each institution required to comply with the 18
sections listed in paragraph (1) of such update. 19
‘‘(c) I
NSTITUTIONALREQUIREMENTS FORCOMPLIANCE 20
O
FFICERS ANDINSTITUTIONALPOLICYREQUIREMENTS.— 21
‘‘(1) I
N GENERAL.—An institution that is re-22
quired to file a report under section 117 or 117C, that 23
is seeking a waiver under section 117A, or that is 24
subject to the requirements of section 117B, shall, not 25
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•HR 1048 RH
later than the earlier of the date on which the institu-1
tion files the first report under such a section, re-2
quests the institution’s first waiver under section 3
117A, or first fulfills the requirements of section 4
117C— 5
‘‘(A) establish an institutional policy that 6
the institution shall follow in meeting the re-7
quirements of sections 117, 117A, 117B, and 8
117C; and 9
‘‘(B) designate and maintain at least one, 10
but not more than three, current employees or le-11
gally authorized agents of such institution to 12
serve as compliance officers to carry out the re-13
quirements listed in paragraph (2). 14
‘‘(2) D
UTIES OF COMPLIANCE OFFICERS .—A 15
compliance officer designated by an institution under 16
paragraph (1)(B) shall certify— 17
‘‘(A) whenever the institution is required to 18
file a report under section 117 or 117C— 19
‘‘(i) the institution’s accurate compli-20
ance with the reporting requirements under 21
such section; 22
‘‘(ii) that the institution, in filing such 23
report under section 117 or 117C— 24
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•HR 1048 RH
‘‘(I) followed the institutional pol-1
icy established under paragraph (1)(A) 2
applicable to such section; and 3
‘‘(II) conducted good faith efforts 4
and reasonable due diligence to ensure 5
that accurate information is provided 6
in such report, including with respect 7
to the valuations of any assets that are 8
disclosed in a report submitted under 9
section 117C; and 10
‘‘(iii) in the case of a report under sec-11
tion 117, any statements by the institution 12
required to be certified by such an officer 13
under clause (i) or (iv) of section 14
117(b)(1)(C); and 15
‘‘(B) whenever the institution requests a 16
waiver under section 117A— 17
‘‘(i) that the institution— 18
‘‘(I) is in compliance with the re-19
quirements of such section; and 20
‘‘(II) followed the institutional 21
policy established under paragraph 22
(1)(A) applicable to such section; and 23
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•HR 1048 RH
‘‘(ii) the statement by the institution 1
required to be certified by such an officer 2
under section 117A(b)(2)(A)(ii)(II); and 3
‘‘(C) whenever the institution is subject to 4
the requirements of section 117B, that the insti-5
tution— 6
‘‘(i) is in compliance with the require-7
ments of such section; and 8
‘‘(ii) followed the institutional policy 9
established under paragraph (1)(A) applica-10
ble to such section. 11
‘‘(d) D
EFINITIONS.—For purposes of sections 117, 12
117A, 117B, 117C, and this section: 13
‘‘(1) F
OREIGN COUNTRY OF CONCERN .—The term 14
‘foreign country of concern’ means the following: 15
‘‘(A) Any covered nation defined in section 16
4872 of title 10, United States Code. 17
‘‘(B) Any country the Secretary, in con-18
sultation with the Secretary of Defense, the Sec-19
retary of State, and the Director of National In-20
telligence, determines, for purposes of sections 21
117, 117A, 117B, 117C, or this section, to be en-22
gaged in conduct that is detrimental to the na-23
tional security or foreign policy of the United 24
States. 25
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‘‘(2) FOREIGN ENTITY OF CONCERN .—The term 1
‘foreign entity of concern’ has the meaning given such 2
term in section 10612(a) of the Research and Develop-3
ment, Competition, and Innovation Act (42 U.S.C. 4
19221(a)) and includes a foreign entity that is identi-5
fied on the list published under section 1286(c)(8)(A) 6
of the John S. McCain National Defense Authoriza-7
tion Act for Fiscal Year 2019 (10 U.S.C. 22 4001 8
note; Public Law 115–232). 9
‘‘(3) I
NSTITUTION.—The term ‘institution’ means 10
an institution of higher education (as such term is de-11
fined in section 102, other than an institution de-12
scribed in subsection (a)(1)(C) of such section).’’. 13
(b) P
ROGRAMPARTICIPATIONAGREEMENT.—Section 14
487(a) of the Higher Education Act of 1965 (20 U.S.C. 15
1094) is amended by adding at the end the following: 16
‘‘(30)(A) An institution will comply with the re-17
quirements of sections 117, 117A, 117B, 117C, and 18
117D(c). 19
‘‘(B) In the case of an institution described in 20
subparagraph (C), the institution will— 21
‘‘(i) be ineligible to participate in the pro-22
grams authorized by this title for a period of not 23
less than 2 institutional fiscal years; and 24
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‘‘(ii) in order to regain eligibility to par-1
ticipate in such programs, demonstrate compli-2
ance with all requirements of each such section 3
for not less than 2 institutional fiscal years after 4
the institutional fiscal year in which such insti-5
tution became ineligible. 6
‘‘(C) An institution described in this subpara-7
graph is an institution that— 8
‘‘(i) has been subject to 3 separate civil ac-9
tions described in section 117D(a)(2) that have 10
each resulted in the institution being compelled 11
to comply with one or more requirements of sec-12
tion 117, 117A, 117B, 117C, or 117D(c); and 13
‘‘(ii) pursuant to section 117D(a)(4)(E), is 14
prohibited from obtaining a waiver, or a renewal 15
of a waiver, under section 117A.’’. 16
(c) GAO S
TUDY ANDREPORT.— 17
(1) S
TUDY.—Not later than 180 days after the 18
date of enactment of this Act, the Comptroller General 19
of the United States shall initiate a study to identify 20
ways to improve intergovernmental agency coordina-21
tion regarding implementation and enforcement of 22
sections 117, 117A, 117B, 117C, and 117D(c) of the 23
Higher Education Act of 1965 (20 U.S.C. 1011f), as 24
amended or added by this Act, including increasing 25
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information sharing, increasing compliance rates, 1
and establishing processes for enforcement. 2
(2) R
EPORT.—Not later than 3 years after the 3
date of enactment of this Act, the Comptroller General 4
of the United States shall submit to Congress, and 5
make public, a report containing the results of the 6
study described in paragraph (1). 7
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9
119
TH
CONGRESS
1
ST
S
ESSION
H. R. 1048
[Report No. 119–16]
A BILL
To amend the Higher Education Act of 1965 to
strengthen disclosure requirements relating to
foreign gifts and contracts, to prohibit contracts
between institutions of higher education and cer-
tain foreign entities and countries of concern,
and for other purposes.
M
ARCH
14, 2025
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed
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