1 | 1 | | I |
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2 | 2 | | 119THCONGRESS |
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3 | 3 | | 1 |
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4 | 4 | | STSESSION H. R. 938 |
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5 | 5 | | To amend the Higher Education Act of 1965 to restrict contracts with |
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6 | 6 | | foreign countries of concern and foreign entities of concern. |
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7 | 7 | | IN THE HOUSE OF REPRESENTATIVES |
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8 | 8 | | FEBRUARY4, 2025 |
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9 | 9 | | Mr. H |
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10 | 10 | | ARRISof North Carolina (for himself and Mr. OWENS) introduced the |
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11 | 11 | | following bill; which was referred to the Committee on Education and |
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12 | 12 | | Workforce |
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13 | 13 | | A BILL |
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14 | 14 | | To amend the Higher Education Act of 1965 to restrict |
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15 | 15 | | contracts with foreign countries of concern and foreign |
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16 | 16 | | entities of concern. |
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17 | 17 | | Be it enacted by the Senate and House of Representa-1 |
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18 | 18 | | tives of the United States of America in Congress assembled, 2 |
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19 | 19 | | SECTION 1. SHORT TITLE. 3 |
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20 | 20 | | This Act may be cited as the ‘‘No Contracts with 4 |
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21 | 21 | | Foreign Adversaries Act’’. 5 |
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24 | 24 | | •HR 938 IH |
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25 | 25 | | SEC. 2. PROHIBITION ON CONTRACTS WITH CERTAIN FOR-1 |
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26 | 26 | | EIGN ENTITIES AND COUNTRIES. 2 |
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27 | 27 | | (a) I |
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28 | 28 | | NGENERAL.—Part B of title I of the Higher 3 |
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29 | 29 | | Education Act of 1965 (20 U.S.C. 1011 et seq.) is amend-4 |
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30 | 30 | | ed by inserting after section 117 the following: 5 |
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31 | 31 | | ‘‘SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN 6 |
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32 | 32 | | FOREIGN ENTITIES AND COUNTRIES. 7 |
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33 | 33 | | ‘‘(a) I |
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34 | 34 | | NGENERAL.—An institution shall not enter 8 |
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35 | 35 | | into a contract with a foreign country of concern or a for-9 |
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36 | 36 | | eign entity of concern. 10 |
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37 | 37 | | ‘‘(b) W |
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38 | 38 | | AIVERS.— 11 |
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39 | 39 | | ‘‘(1) I |
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40 | 40 | | N GENERAL.—A waiver issued under this 12 |
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41 | 41 | | section to an institution with respect to a contract 13 |
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42 | 42 | | shall only— 14 |
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43 | 43 | | ‘‘(A) waive the prohibition under sub-15 |
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44 | 44 | | section (a) for a 1-year period; and 16 |
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45 | 45 | | ‘‘(B) apply to the terms and conditions of 17 |
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46 | 46 | | the proposed contract submitted as part of the 18 |
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47 | 47 | | request for such waiver. 19 |
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48 | 48 | | ‘‘(2) S |
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49 | 49 | | UBMISSION.— 20 |
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50 | 50 | | ‘‘(A) F |
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51 | 51 | | IRST WAIVER REQUESTS.— 21 |
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52 | 52 | | ‘‘(i) I |
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53 | 53 | | N GENERAL.—An institution 22 |
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54 | 54 | | that desires to enter into a contract with 23 |
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55 | 55 | | a foreign entity of concern or a foreign 24 |
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56 | 56 | | country of concern may submit to the Sec-25 |
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57 | 57 | | retary, not later than 120 days before the 26 |
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59 | 59 | | ssavage on LAPJG3WLY3PROD with BILLS 3 |
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60 | 60 | | •HR 938 IH |
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61 | 61 | | institution enters into such a contract, a 1 |
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62 | 62 | | request to waive the prohibition under sub-2 |
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63 | 63 | | section (a) with respect to such contract. 3 |
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64 | 64 | | ‘‘(ii) C |
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65 | 65 | | ONTENTS OF WAIVER RE -4 |
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66 | 66 | | QUEST.—A waiver request submitted by an 5 |
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67 | 67 | | institution under clause (i) shall include— 6 |
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68 | 68 | | ‘‘(I) the complete and unredacted 7 |
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69 | 69 | | text of the proposed contract for 8 |
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70 | 70 | | which the waiver is being requested, 9 |
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71 | 71 | | and if such original contract is not in 10 |
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72 | 72 | | English, a translated copy of the text 11 |
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73 | 73 | | into English by a person that is not 12 |
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74 | 74 | | an affiliated entity or agent of the for-13 |
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75 | 75 | | eign source involved with such con-14 |
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76 | 76 | | tract; and 15 |
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77 | 77 | | ‘‘(II) a statement that— 16 |
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78 | 78 | | ‘‘(aa) is certified by the 17 |
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79 | 79 | | compliance officer of the institu-18 |
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80 | 80 | | tion designated in accordance 19 |
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81 | 81 | | with subsection (e); and 20 |
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82 | 82 | | ‘‘(bb) includes information 21 |
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83 | 83 | | that demonstrates that such con-22 |
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84 | 84 | | tract— 23 |
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87 | 87 | | •HR 938 IH |
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88 | 88 | | ‘‘(AA) is for the benefit 1 |
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89 | 89 | | of the institution’s mission 2 |
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90 | 90 | | and students; and 3 |
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91 | 91 | | ‘‘(BB) will promote the 4 |
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92 | 92 | | security, stability, and eco-5 |
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93 | 93 | | nomic vitality of the United 6 |
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94 | 94 | | States. 7 |
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95 | 95 | | ‘‘(B) R |
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96 | 96 | | ENEWAL WAIVER REQUESTS .— 8 |
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97 | 97 | | ‘‘(i) I |
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98 | 98 | | N GENERAL.—An institution 9 |
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99 | 99 | | that, pursuant to a waiver issued under 10 |
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100 | 100 | | this section, has entered into a contract, 11 |
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101 | 101 | | the term of which is longer than the 1-year 12 |
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102 | 102 | | waiver period and the terms and conditions 13 |
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103 | 103 | | of which remain the same as the proposed 14 |
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104 | 104 | | contract submitted as part of the request 15 |
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105 | 105 | | for such waiver may submit, not later than 16 |
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106 | 106 | | 120 days before the expiration of such 17 |
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107 | 107 | | waiver period, a request for a renewal of 18 |
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108 | 108 | | such waiver for an additional 1-year period 19 |
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109 | 109 | | (which shall include any information re-20 |
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110 | 110 | | quested by the Secretary). 21 |
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111 | 111 | | ‘‘(ii) T |
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112 | 112 | | ERMINATION.—If the institu-22 |
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113 | 113 | | tion fails to submit a request under clause 23 |
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114 | 114 | | (i) or is not granted a renewal under such 24 |
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115 | 115 | | clause, such institution shall terminate 25 |
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118 | 118 | | •HR 938 IH |
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119 | 119 | | such contract on the last day of the origi-1 |
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120 | 120 | | nal 1-year waiver period. 2 |
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121 | 121 | | ‘‘(3) W |
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122 | 122 | | AIVER ISSUANCE.—The Secretary— 3 |
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123 | 123 | | ‘‘(A) not later than 60 days before an in-4 |
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124 | 124 | | stitution enters into a contract pursuant to a 5 |
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125 | 125 | | waiver request under paragraph (2)(A), or be-6 |
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126 | 126 | | fore a contract described in paragraph (2)(B)(i) 7 |
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127 | 127 | | is renewed pursuant to a renewal request under 8 |
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128 | 128 | | such paragraph, shall notify the institution— 9 |
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129 | 129 | | ‘‘(i) if the waiver or renewal will be 10 |
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130 | 130 | | issued by the Secretary; and 11 |
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131 | 131 | | ‘‘(ii) in a case in which the waiver or 12 |
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132 | 132 | | renewal will be issued, the date on which 13 |
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133 | 133 | | the 1-year waiver period starts; and 14 |
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134 | 134 | | ‘‘(B) may only issue a waiver under this 15 |
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135 | 135 | | section to an institution if the Secretary deter-16 |
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136 | 136 | | mines, in consultation with the Director of the 17 |
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137 | 137 | | Federal Bureau of Investigation, the Director 18 |
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138 | 138 | | of National Intelligence, the Director of the 19 |
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139 | 139 | | Central Intelligence Agency, the Secretary of 20 |
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140 | 140 | | State, the Secretary of Defense, the Attorney 21 |
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141 | 141 | | General, the Secretary of Commerce, the Sec-22 |
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142 | 142 | | retary of Homeland Security, the Secretary of 23 |
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143 | 143 | | Energy, the Director of the National Science 24 |
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144 | 144 | | Foundation, and the Director of the National 25 |
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147 | 147 | | •HR 938 IH |
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148 | 148 | | Institutes of Health, that the contract for which 1 |
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149 | 149 | | the waiver is being requested— 2 |
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150 | 150 | | ‘‘(i) is for the benefit of the institu-3 |
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151 | 151 | | tion’s mission and students; and 4 |
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152 | 152 | | ‘‘(ii) will promote the security, sta-5 |
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153 | 153 | | bility, and economic vitality of the United 6 |
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154 | 154 | | States. 7 |
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155 | 155 | | ‘‘(4) D |
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156 | 156 | | ISCLOSURE.—Not less than 2 weeks 8 |
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157 | 157 | | prior to issuing a waiver under paragraph (2), the 9 |
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158 | 158 | | Secretary shall notify the— 10 |
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159 | 159 | | ‘‘(A) the Committee on Education and 11 |
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160 | 160 | | Workforce of the House of Representatives; and 12 |
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161 | 161 | | ‘‘(B) the Committee on Health, Education, 13 |
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162 | 162 | | Labor, and Pensions of the Senate, 14 |
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163 | 163 | | of the intent to issue the waiver, including a jus-15 |
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164 | 164 | | tification for the waiver. 16 |
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165 | 165 | | ‘‘(c) D |
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166 | 166 | | ESIGNATIONDURINGCONTRACTTERM.—In 17 |
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167 | 167 | | the case of an institution that enters into a contract with 18 |
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168 | 168 | | a foreign source that is not a foreign country of concern 19 |
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169 | 169 | | or a foreign entity of concern but which, during the term 20 |
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170 | 170 | | of such contract, is designated as a foreign country of con-21 |
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171 | 171 | | cern or foreign entity of concern, such institution shall ter-22 |
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172 | 172 | | minate such contract not later than 60 days after the Sec-23 |
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173 | 173 | | retary notifies the institution of such designation. 24 |
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174 | 174 | | ‘‘(d) C |
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175 | 175 | | ONTRACTSPRIOR TODATE OFENACTMENT.— 25 |
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178 | 178 | | •HR 938 IH |
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179 | 179 | | ‘‘(1) IN GENERAL.—In the case of an institu-1 |
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180 | 180 | | tion that has entered into a contract with a foreign 2 |
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181 | 181 | | country of concern or foreign entity of concern prior 3 |
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182 | 182 | | to the date of enactment of the No Contracts with 4 |
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183 | 183 | | Foreign Adversaries Act— 5 |
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184 | 184 | | ‘‘(A) the institution shall as soon as prac-6 |
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185 | 185 | | ticable, but not later than 30 days after such 7 |
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186 | 186 | | date of enactment, submit to the Secretary a 8 |
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187 | 187 | | waiver request in accordance with clause (ii) of 9 |
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188 | 188 | | subsection (b)(2)(A); and 10 |
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189 | 189 | | ‘‘(B) the Secretary shall, upon receipt of 11 |
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190 | 190 | | the request submitted under such clause, issue 12 |
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191 | 191 | | a waiver to the institution for a period begin-13 |
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192 | 192 | | ning on the date on which the waiver is issued 14 |
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193 | 193 | | and ending on the sooner of— 15 |
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194 | 194 | | ‘‘(i) the date that is 1 year after the 16 |
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195 | 195 | | date of enactment of the No Contracts 17 |
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196 | 196 | | with Foreign Adversaries Act; or 18 |
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197 | 197 | | ‘‘(ii) the date on which the contract 19 |
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198 | 198 | | terminates. 20 |
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199 | 199 | | ‘‘(2) R |
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200 | 200 | | ENEWAL.—An institution that has en-21 |
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201 | 201 | | tered into a contract described in paragraph (1), the 22 |
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202 | 202 | | term of which is longer than the waiver period de-23 |
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203 | 203 | | scribed in subparagraph (B) of such paragraph and 24 |
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204 | 204 | | the terms and conditions of which remain the same 25 |
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207 | 207 | | •HR 938 IH |
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208 | 208 | | as the contract submitted as part of the request re-1 |
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209 | 209 | | quired under subparagraph (A) of such paragraph, 2 |
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210 | 210 | | may submit a request for renewal of the waiver 3 |
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211 | 211 | | issued under such paragraph in accordance with 4 |
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212 | 212 | | subsection (b)(2)(B). 5 |
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213 | 213 | | ‘‘(e) C |
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214 | 214 | | OMPLIANCEOFFICER.—Any institution that 6 |
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215 | 215 | | submits a waiver under this section shall designate, before 7 |
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216 | 216 | | the submission of such waiver, and maintain, a compliance 8 |
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217 | 217 | | officer, who shall— 9 |
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218 | 218 | | ‘‘(1) be a current employee or legally authorized 10 |
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219 | 219 | | agent of such institution; and 11 |
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220 | 220 | | ‘‘(2) be responsible, on behalf of the institution, 12 |
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221 | 221 | | for personally certifying accurate compliance with 13 |
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222 | 222 | | the waiver requirements under this section. 14 |
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223 | 223 | | ‘‘(f) E |
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224 | 224 | | NFORCEMENT.— 15 |
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225 | 225 | | ‘‘(1) I |
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226 | 226 | | NVESTIGATION.—The Secretary (acting 16 |
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227 | 227 | | through the General Counsel of the Department) 17 |
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228 | 228 | | shall conduct investigations of possible violations of 18 |
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229 | 229 | | this section by institutions and, whenever it appears 19 |
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230 | 230 | | that an institution has knowingly or willfully failed 20 |
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231 | 231 | | to comply with a requirement of this section (includ-21 |
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232 | 232 | | ing any rule or regulation promulgated under this 22 |
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233 | 233 | | section), shall request that the Attorney General 23 |
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234 | 234 | | bring a civil action in accordance with paragraph 24 |
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235 | 235 | | (2). 25 |
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238 | 238 | | •HR 938 IH |
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239 | 239 | | ‘‘(2) CIVIL ACTION.—Whenever it appears that 1 |
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240 | 240 | | an institution has knowingly or willfully failed to 2 |
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241 | 241 | | comply with a requirement of this section (including 3 |
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242 | 242 | | any rule or regulation promulgated under this sec-4 |
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243 | 243 | | tion) based on an investigation under such para-5 |
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244 | 244 | | graph, a civil action shall be brought by the Attor-6 |
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245 | 245 | | ney General, at the request of the Secretary, in an 7 |
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246 | 246 | | appropriate district court of the United States, or 8 |
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247 | 247 | | the appropriate United States court of any territory 9 |
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248 | 248 | | or other place subject to the jurisdiction of the 10 |
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249 | 249 | | United States, to request such court to compel com-11 |
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250 | 250 | | pliance with the requirement of this section that has 12 |
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251 | 251 | | been violated. 13 |
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252 | 252 | | ‘‘(3) C |
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253 | 253 | | OSTS AND OTHER FINES .—An institution 14 |
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254 | 254 | | that is compelled to comply with a requirement of 15 |
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255 | 255 | | this section pursuant to paragraph (2) shall— 16 |
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256 | 256 | | ‘‘(A) pay to the Treasury of the United 17 |
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257 | 257 | | States the full costs to the United States of ob-18 |
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258 | 258 | | taining compliance with such requirement, in-19 |
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259 | 259 | | cluding all associated costs of investigation and 20 |
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260 | 260 | | enforcement; and 21 |
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261 | 261 | | ‘‘(B) be subject to the applicable fines de-22 |
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262 | 262 | | scribed in paragraph (4). 23 |
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263 | 263 | | ‘‘(4) F |
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264 | 264 | | INES FOR VIOLATIONS .—The Secretary 24 |
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265 | 265 | | shall impose a fine on an institution that is com-25 |
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268 | 268 | | •HR 938 IH |
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269 | 269 | | pelled to comply with a requirement of this section 1 |
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270 | 270 | | pursuant to paragraph (2) as follows: 2 |
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271 | 271 | | ‘‘(A) F |
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272 | 272 | | IRST-TIME VIOLATIONS.—In the 3 |
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273 | 273 | | case of an institution that knowingly or willfully 4 |
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274 | 274 | | fails to comply with a requirement of this sec-5 |
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275 | 275 | | tion for the first time, the Secretary shall im-6 |
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276 | 276 | | pose a fine on the institution in an amount that 7 |
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277 | 277 | | is not less than 5 percent and not more than 8 |
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278 | 278 | | 10 percent of the total amount of Federal funds 9 |
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279 | 279 | | received by the institution under this Act for 10 |
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280 | 280 | | the most recent fiscal year. 11 |
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281 | 281 | | ‘‘(B) S |
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282 | 282 | | UBSEQUENT VIOLATIONS .—In the 12 |
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283 | 283 | | case of an institution that has been fined pur-13 |
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284 | 284 | | suant to subparagraph (A), the Secretary shall 14 |
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285 | 285 | | impose a fine on the institution for each subse-15 |
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286 | 286 | | quent time the institution knowingly or willfully 16 |
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287 | 287 | | fails to comply with a requirement of this sec-17 |
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288 | 288 | | tion in an amount that is not less than 20 per-18 |
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289 | 289 | | cent of the total amount of Federal funds re-19 |
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290 | 290 | | ceived by the institution under this Act for the 20 |
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291 | 291 | | most recent fiscal year. 21 |
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292 | 292 | | ‘‘(C) I |
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293 | 293 | | NELIGIBILTY FOR WAIVER .—In the 22 |
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294 | 294 | | case of an institution that has been fined pur-23 |
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295 | 295 | | suant to subparagraph (A) with respect to a 24 |
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296 | 296 | | calendar year, and that knowingly or willfully 25 |
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299 | 299 | | •HR 938 IH |
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300 | 300 | | fails to comply with a requirement of this sec-1 |
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301 | 301 | | tion with respect to any 2 additional calendar 2 |
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302 | 302 | | years, the Secretary shall prohibit the institu-3 |
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303 | 303 | | tion from obtaining a waiver, or a renewal of a 4 |
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304 | 304 | | waiver, under this section. 5 |
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305 | 305 | | ‘‘(g) D |
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306 | 306 | | EFINITIONS.—In this section: 6 |
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307 | 307 | | ‘‘(1) C |
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308 | 308 | | ONTRACT.—The term ‘contract’— 7 |
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309 | 309 | | ‘‘(A) means— 8 |
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310 | 310 | | ‘‘(i) any agreement for the acquisition 9 |
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311 | 311 | | by purchase, lease, or barter of property or 10 |
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312 | 312 | | services by the foreign source; 11 |
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313 | 313 | | ‘‘(ii) any affiliation, agreement, or 12 |
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314 | 314 | | similar transaction with a foreign source 13 |
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315 | 315 | | that involves the use or exchange of an in-14 |
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316 | 316 | | stitution’s name, likeness, time, services, or 15 |
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317 | 317 | | resources; and 16 |
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318 | 318 | | ‘‘(iii) any agreement for the acquisi-17 |
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319 | 319 | | tion by purchase, lease, or barter, of prop-18 |
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320 | 320 | | erty or services from a foreign source 19 |
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321 | 321 | | (other than an arms-length agreement for 20 |
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322 | 322 | | such acquisition from a foreign source that 21 |
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323 | 323 | | is not a foreign country of concern or a 22 |
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324 | 324 | | foreign entity of concern); and 23 |
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325 | 325 | | ‘‘(B) does not include an agreement made 24 |
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326 | 326 | | between an institution and a foreign source re-25 |
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329 | 329 | | •HR 938 IH |
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330 | 330 | | garding any payment of one or more elements 1 |
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331 | 331 | | of a student’s cost of attendance (as such term 2 |
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332 | 332 | | is defined in section 472), unless such an agree-3 |
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333 | 333 | | ment is made for more than 15 students or is 4 |
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334 | 334 | | made under a restricted or conditional contract. 5 |
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335 | 335 | | ‘‘(2) F |
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336 | 336 | | OREIGN COUNTRY OF CONCERN .—The 6 |
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337 | 337 | | term ‘foreign country of concern’ means the fol-7 |
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338 | 338 | | lowing: 8 |
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339 | 339 | | ‘‘(A) Any covered nation defined in section 9 |
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340 | 340 | | 4872 of title 10, United States Code. 10 |
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341 | 341 | | ‘‘(B) Any country the Secretary, in con-11 |
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342 | 342 | | sultation with the Secretary of Defense, the 12 |
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343 | 343 | | Secretary of State, and the Director of National 13 |
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344 | 344 | | Intelligence, determines, for purposes of section 14 |
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345 | 345 | | 117 or this section, to be engaged in conduct 15 |
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346 | 346 | | that is detrimental to the national security or 16 |
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347 | 347 | | foreign policy of the United States. 17 |
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348 | 348 | | ‘‘(3) F |
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349 | 349 | | OREIGN ENTITY OF CONCERN .—The 18 |
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350 | 350 | | term ‘foreign entity of concern’ has the meaning 19 |
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351 | 351 | | given such term in section 10612(a) of the Research 20 |
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352 | 352 | | and Development, Competition, and Innovation Act 21 |
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353 | 353 | | (42 U.S.C. 19221(a)) and includes a foreign entity 22 |
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354 | 354 | | that is identified on the list published under section 23 |
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355 | 355 | | 1286(c)(8)(A) of the John S. McCain National De-24 |
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358 | 358 | | •HR 938 IH |
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359 | 359 | | fense Authorization Act for Fiscal Year 2019 (10 1 |
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360 | 360 | | U.S.C. 22 4001 note; Public Law 115–232). 2 |
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361 | 361 | | ‘‘(4) I |
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362 | 362 | | NSTITUTION.—The term ‘institution’ 3 |
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363 | 363 | | means an institution of higher education (as such 4 |
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364 | 364 | | term is defined in section 102, other than an institu-5 |
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365 | 365 | | tion described in subsection (a)(1)(C) of such sec-6 |
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366 | 366 | | tion).’’. 7 |
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367 | 367 | | (b) P |
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368 | 368 | | ROGRAMPARTICIPATIONAGREEMENT.—Section 8 |
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369 | 369 | | 487(a) of the Higher Education Act of 1965 (20 U.S.C. 9 |
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370 | 370 | | 1094) is amended by adding at the end the following: 10 |
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371 | 371 | | ‘‘(30)(A) An institution will comply with the re-11 |
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372 | 372 | | quirements of section 117A. 12 |
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373 | 373 | | ‘‘(B) An institution that, for 3 consecutive in-13 |
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374 | 374 | | stitutional fiscal years, violates any requirement of 14 |
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375 | 375 | | section 117A shall— 15 |
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376 | 376 | | ‘‘(i) be ineligible to participate in the pro-16 |
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377 | 377 | | grams authorized by this title for a period of 17 |
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378 | 378 | | not less than 2 institutional fiscal years; and 18 |
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379 | 379 | | ‘‘(ii) in order to regain eligibility to partici-19 |
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380 | 380 | | pate in such programs, demonstrate compliance 20 |
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381 | 381 | | with all requirements of each such section for 21 |
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382 | 382 | | not less than 2 institutional fiscal years after 22 |
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383 | 383 | | the institutional fiscal year in which such insti-23 |
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384 | 384 | | tution became ineligible.’’. 24 |
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385 | 385 | | Æ |
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386 | 386 | | VerDate Sep 11 2014 16:37 Mar 03, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6301 E:\BILLS\H938.IH H938 |
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387 | 387 | | ssavage on LAPJG3WLY3PROD with BILLS |
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