Us Congress 2025-2026 Regular Session

Us Congress House Bill HB938 Compare Versions

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11 I
22 119THCONGRESS
33 1
44 STSESSION H. R. 938
55 To amend the Higher Education Act of 1965 to restrict contracts with
66 foreign countries of concern and foreign entities of concern.
77 IN THE HOUSE OF REPRESENTATIVES
88 FEBRUARY4, 2025
99 Mr. H
1010 ARRISof North Carolina (for himself and Mr. OWENS) introduced the
1111 following bill; which was referred to the Committee on Education and
1212 Workforce
1313 A BILL
1414 To amend the Higher Education Act of 1965 to restrict
1515 contracts with foreign countries of concern and foreign
1616 entities of concern.
1717 Be it enacted by the Senate and House of Representa-1
1818 tives of the United States of America in Congress assembled, 2
1919 SECTION 1. SHORT TITLE. 3
2020 This Act may be cited as the ‘‘No Contracts with 4
2121 Foreign Adversaries Act’’. 5
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2424 •HR 938 IH
2525 SEC. 2. PROHIBITION ON CONTRACTS WITH CERTAIN FOR-1
2626 EIGN ENTITIES AND COUNTRIES. 2
2727 (a) I
2828 NGENERAL.—Part B of title I of the Higher 3
2929 Education Act of 1965 (20 U.S.C. 1011 et seq.) is amend-4
3030 ed by inserting after section 117 the following: 5
3131 ‘‘SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN 6
3232 FOREIGN ENTITIES AND COUNTRIES. 7
3333 ‘‘(a) I
3434 NGENERAL.—An institution shall not enter 8
3535 into a contract with a foreign country of concern or a for-9
3636 eign entity of concern. 10
3737 ‘‘(b) W
3838 AIVERS.— 11
3939 ‘‘(1) I
4040 N GENERAL.—A waiver issued under this 12
4141 section to an institution with respect to a contract 13
4242 shall only— 14
4343 ‘‘(A) waive the prohibition under sub-15
4444 section (a) for a 1-year period; and 16
4545 ‘‘(B) apply to the terms and conditions of 17
4646 the proposed contract submitted as part of the 18
4747 request for such waiver. 19
4848 ‘‘(2) S
4949 UBMISSION.— 20
5050 ‘‘(A) F
5151 IRST WAIVER REQUESTS.— 21
5252 ‘‘(i) I
5353 N GENERAL.—An institution 22
5454 that desires to enter into a contract with 23
5555 a foreign entity of concern or a foreign 24
5656 country of concern may submit to the Sec-25
5757 retary, not later than 120 days before the 26
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6161 institution enters into such a contract, a 1
6262 request to waive the prohibition under sub-2
6363 section (a) with respect to such contract. 3
6464 ‘‘(ii) C
6565 ONTENTS OF WAIVER RE -4
6666 QUEST.—A waiver request submitted by an 5
6767 institution under clause (i) shall include— 6
6868 ‘‘(I) the complete and unredacted 7
6969 text of the proposed contract for 8
7070 which the waiver is being requested, 9
7171 and if such original contract is not in 10
7272 English, a translated copy of the text 11
7373 into English by a person that is not 12
7474 an affiliated entity or agent of the for-13
7575 eign source involved with such con-14
7676 tract; and 15
7777 ‘‘(II) a statement that— 16
7878 ‘‘(aa) is certified by the 17
7979 compliance officer of the institu-18
8080 tion designated in accordance 19
8181 with subsection (e); and 20
8282 ‘‘(bb) includes information 21
8383 that demonstrates that such con-22
8484 tract— 23
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8888 ‘‘(AA) is for the benefit 1
8989 of the institution’s mission 2
9090 and students; and 3
9191 ‘‘(BB) will promote the 4
9292 security, stability, and eco-5
9393 nomic vitality of the United 6
9494 States. 7
9595 ‘‘(B) R
9696 ENEWAL WAIVER REQUESTS .— 8
9797 ‘‘(i) I
9898 N GENERAL.—An institution 9
9999 that, pursuant to a waiver issued under 10
100100 this section, has entered into a contract, 11
101101 the term of which is longer than the 1-year 12
102102 waiver period and the terms and conditions 13
103103 of which remain the same as the proposed 14
104104 contract submitted as part of the request 15
105105 for such waiver may submit, not later than 16
106106 120 days before the expiration of such 17
107107 waiver period, a request for a renewal of 18
108108 such waiver for an additional 1-year period 19
109109 (which shall include any information re-20
110110 quested by the Secretary). 21
111111 ‘‘(ii) T
112112 ERMINATION.—If the institu-22
113113 tion fails to submit a request under clause 23
114114 (i) or is not granted a renewal under such 24
115115 clause, such institution shall terminate 25
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119119 such contract on the last day of the origi-1
120120 nal 1-year waiver period. 2
121121 ‘‘(3) W
122122 AIVER ISSUANCE.—The Secretary— 3
123123 ‘‘(A) not later than 60 days before an in-4
124124 stitution enters into a contract pursuant to a 5
125125 waiver request under paragraph (2)(A), or be-6
126126 fore a contract described in paragraph (2)(B)(i) 7
127127 is renewed pursuant to a renewal request under 8
128128 such paragraph, shall notify the institution— 9
129129 ‘‘(i) if the waiver or renewal will be 10
130130 issued by the Secretary; and 11
131131 ‘‘(ii) in a case in which the waiver or 12
132132 renewal will be issued, the date on which 13
133133 the 1-year waiver period starts; and 14
134134 ‘‘(B) may only issue a waiver under this 15
135135 section to an institution if the Secretary deter-16
136136 mines, in consultation with the Director of the 17
137137 Federal Bureau of Investigation, the Director 18
138138 of National Intelligence, the Director of the 19
139139 Central Intelligence Agency, the Secretary of 20
140140 State, the Secretary of Defense, the Attorney 21
141141 General, the Secretary of Commerce, the Sec-22
142142 retary of Homeland Security, the Secretary of 23
143143 Energy, the Director of the National Science 24
144144 Foundation, and the Director of the National 25
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148148 Institutes of Health, that the contract for which 1
149149 the waiver is being requested— 2
150150 ‘‘(i) is for the benefit of the institu-3
151151 tion’s mission and students; and 4
152152 ‘‘(ii) will promote the security, sta-5
153153 bility, and economic vitality of the United 6
154154 States. 7
155155 ‘‘(4) D
156156 ISCLOSURE.—Not less than 2 weeks 8
157157 prior to issuing a waiver under paragraph (2), the 9
158158 Secretary shall notify the— 10
159159 ‘‘(A) the Committee on Education and 11
160160 Workforce of the House of Representatives; and 12
161161 ‘‘(B) the Committee on Health, Education, 13
162162 Labor, and Pensions of the Senate, 14
163163 of the intent to issue the waiver, including a jus-15
164164 tification for the waiver. 16
165165 ‘‘(c) D
166166 ESIGNATIONDURINGCONTRACTTERM.—In 17
167167 the case of an institution that enters into a contract with 18
168168 a foreign source that is not a foreign country of concern 19
169169 or a foreign entity of concern but which, during the term 20
170170 of such contract, is designated as a foreign country of con-21
171171 cern or foreign entity of concern, such institution shall ter-22
172172 minate such contract not later than 60 days after the Sec-23
173173 retary notifies the institution of such designation. 24
174174 ‘‘(d) C
175175 ONTRACTSPRIOR TODATE OFENACTMENT.— 25
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179179 ‘‘(1) IN GENERAL.—In the case of an institu-1
180180 tion that has entered into a contract with a foreign 2
181181 country of concern or foreign entity of concern prior 3
182182 to the date of enactment of the No Contracts with 4
183183 Foreign Adversaries Act— 5
184184 ‘‘(A) the institution shall as soon as prac-6
185185 ticable, but not later than 30 days after such 7
186186 date of enactment, submit to the Secretary a 8
187187 waiver request in accordance with clause (ii) of 9
188188 subsection (b)(2)(A); and 10
189189 ‘‘(B) the Secretary shall, upon receipt of 11
190190 the request submitted under such clause, issue 12
191191 a waiver to the institution for a period begin-13
192192 ning on the date on which the waiver is issued 14
193193 and ending on the sooner of— 15
194194 ‘‘(i) the date that is 1 year after the 16
195195 date of enactment of the No Contracts 17
196196 with Foreign Adversaries Act; or 18
197197 ‘‘(ii) the date on which the contract 19
198198 terminates. 20
199199 ‘‘(2) R
200200 ENEWAL.—An institution that has en-21
201201 tered into a contract described in paragraph (1), the 22
202202 term of which is longer than the waiver period de-23
203203 scribed in subparagraph (B) of such paragraph and 24
204204 the terms and conditions of which remain the same 25
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208208 as the contract submitted as part of the request re-1
209209 quired under subparagraph (A) of such paragraph, 2
210210 may submit a request for renewal of the waiver 3
211211 issued under such paragraph in accordance with 4
212212 subsection (b)(2)(B). 5
213213 ‘‘(e) C
214214 OMPLIANCEOFFICER.—Any institution that 6
215215 submits a waiver under this section shall designate, before 7
216216 the submission of such waiver, and maintain, a compliance 8
217217 officer, who shall— 9
218218 ‘‘(1) be a current employee or legally authorized 10
219219 agent of such institution; and 11
220220 ‘‘(2) be responsible, on behalf of the institution, 12
221221 for personally certifying accurate compliance with 13
222222 the waiver requirements under this section. 14
223223 ‘‘(f) E
224224 NFORCEMENT.— 15
225225 ‘‘(1) I
226226 NVESTIGATION.—The Secretary (acting 16
227227 through the General Counsel of the Department) 17
228228 shall conduct investigations of possible violations of 18
229229 this section by institutions and, whenever it appears 19
230230 that an institution has knowingly or willfully failed 20
231231 to comply with a requirement of this section (includ-21
232232 ing any rule or regulation promulgated under this 22
233233 section), shall request that the Attorney General 23
234234 bring a civil action in accordance with paragraph 24
235235 (2). 25
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239239 ‘‘(2) CIVIL ACTION.—Whenever it appears that 1
240240 an institution has knowingly or willfully failed to 2
241241 comply with a requirement of this section (including 3
242242 any rule or regulation promulgated under this sec-4
243243 tion) based on an investigation under such para-5
244244 graph, a civil action shall be brought by the Attor-6
245245 ney General, at the request of the Secretary, in an 7
246246 appropriate district court of the United States, or 8
247247 the appropriate United States court of any territory 9
248248 or other place subject to the jurisdiction of the 10
249249 United States, to request such court to compel com-11
250250 pliance with the requirement of this section that has 12
251251 been violated. 13
252252 ‘‘(3) C
253253 OSTS AND OTHER FINES .—An institution 14
254254 that is compelled to comply with a requirement of 15
255255 this section pursuant to paragraph (2) shall— 16
256256 ‘‘(A) pay to the Treasury of the United 17
257257 States the full costs to the United States of ob-18
258258 taining compliance with such requirement, in-19
259259 cluding all associated costs of investigation and 20
260260 enforcement; and 21
261261 ‘‘(B) be subject to the applicable fines de-22
262262 scribed in paragraph (4). 23
263263 ‘‘(4) F
264264 INES FOR VIOLATIONS .—The Secretary 24
265265 shall impose a fine on an institution that is com-25
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269269 pelled to comply with a requirement of this section 1
270270 pursuant to paragraph (2) as follows: 2
271271 ‘‘(A) F
272272 IRST-TIME VIOLATIONS.—In the 3
273273 case of an institution that knowingly or willfully 4
274274 fails to comply with a requirement of this sec-5
275275 tion for the first time, the Secretary shall im-6
276276 pose a fine on the institution in an amount that 7
277277 is not less than 5 percent and not more than 8
278278 10 percent of the total amount of Federal funds 9
279279 received by the institution under this Act for 10
280280 the most recent fiscal year. 11
281281 ‘‘(B) S
282282 UBSEQUENT VIOLATIONS .—In the 12
283283 case of an institution that has been fined pur-13
284284 suant to subparagraph (A), the Secretary shall 14
285285 impose a fine on the institution for each subse-15
286286 quent time the institution knowingly or willfully 16
287287 fails to comply with a requirement of this sec-17
288288 tion in an amount that is not less than 20 per-18
289289 cent of the total amount of Federal funds re-19
290290 ceived by the institution under this Act for the 20
291291 most recent fiscal year. 21
292292 ‘‘(C) I
293293 NELIGIBILTY FOR WAIVER .—In the 22
294294 case of an institution that has been fined pur-23
295295 suant to subparagraph (A) with respect to a 24
296296 calendar year, and that knowingly or willfully 25
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300300 fails to comply with a requirement of this sec-1
301301 tion with respect to any 2 additional calendar 2
302302 years, the Secretary shall prohibit the institu-3
303303 tion from obtaining a waiver, or a renewal of a 4
304304 waiver, under this section. 5
305305 ‘‘(g) D
306306 EFINITIONS.—In this section: 6
307307 ‘‘(1) C
308308 ONTRACT.—The term ‘contract’— 7
309309 ‘‘(A) means— 8
310310 ‘‘(i) any agreement for the acquisition 9
311311 by purchase, lease, or barter of property or 10
312312 services by the foreign source; 11
313313 ‘‘(ii) any affiliation, agreement, or 12
314314 similar transaction with a foreign source 13
315315 that involves the use or exchange of an in-14
316316 stitution’s name, likeness, time, services, or 15
317317 resources; and 16
318318 ‘‘(iii) any agreement for the acquisi-17
319319 tion by purchase, lease, or barter, of prop-18
320320 erty or services from a foreign source 19
321321 (other than an arms-length agreement for 20
322322 such acquisition from a foreign source that 21
323323 is not a foreign country of concern or a 22
324324 foreign entity of concern); and 23
325325 ‘‘(B) does not include an agreement made 24
326326 between an institution and a foreign source re-25
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330330 garding any payment of one or more elements 1
331331 of a student’s cost of attendance (as such term 2
332332 is defined in section 472), unless such an agree-3
333333 ment is made for more than 15 students or is 4
334334 made under a restricted or conditional contract. 5
335335 ‘‘(2) F
336336 OREIGN COUNTRY OF CONCERN .—The 6
337337 term ‘foreign country of concern’ means the fol-7
338338 lowing: 8
339339 ‘‘(A) Any covered nation defined in section 9
340340 4872 of title 10, United States Code. 10
341341 ‘‘(B) Any country the Secretary, in con-11
342342 sultation with the Secretary of Defense, the 12
343343 Secretary of State, and the Director of National 13
344344 Intelligence, determines, for purposes of section 14
345345 117 or this section, to be engaged in conduct 15
346346 that is detrimental to the national security or 16
347347 foreign policy of the United States. 17
348348 ‘‘(3) F
349349 OREIGN ENTITY OF CONCERN .—The 18
350350 term ‘foreign entity of concern’ has the meaning 19
351351 given such term in section 10612(a) of the Research 20
352352 and Development, Competition, and Innovation Act 21
353353 (42 U.S.C. 19221(a)) and includes a foreign entity 22
354354 that is identified on the list published under section 23
355355 1286(c)(8)(A) of the John S. McCain National De-24
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359359 fense Authorization Act for Fiscal Year 2019 (10 1
360360 U.S.C. 22 4001 note; Public Law 115–232). 2
361361 ‘‘(4) I
362362 NSTITUTION.—The term ‘institution’ 3
363363 means an institution of higher education (as such 4
364364 term is defined in section 102, other than an institu-5
365365 tion described in subsection (a)(1)(C) of such sec-6
366366 tion).’’. 7
367367 (b) P
368368 ROGRAMPARTICIPATIONAGREEMENT.—Section 8
369369 487(a) of the Higher Education Act of 1965 (20 U.S.C. 9
370370 1094) is amended by adding at the end the following: 10
371371 ‘‘(30)(A) An institution will comply with the re-11
372372 quirements of section 117A. 12
373373 ‘‘(B) An institution that, for 3 consecutive in-13
374374 stitutional fiscal years, violates any requirement of 14
375375 section 117A shall— 15
376376 ‘‘(i) be ineligible to participate in the pro-16
377377 grams authorized by this title for a period of 17
378378 not less than 2 institutional fiscal years; and 18
379379 ‘‘(ii) in order to regain eligibility to partici-19
380380 pate in such programs, demonstrate compliance 20
381381 with all requirements of each such section for 21
382382 not less than 2 institutional fiscal years after 22
383383 the institutional fiscal year in which such insti-23
384384 tution became ineligible.’’. 24
385385 Æ
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