Us Congress Senate Bill SB1296

Us Congress 2025-2026 Regular Session

• Introduced: 4/3/25
• Refer: 4/3/25

Caption

DETERRENT Act Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act

Impact

The implementation of SB1296 is expected to have significant implications for state laws governing educational institutions. By requiring detailed disclosures and allowing only specific contracts with foreign entities deemed non-threatening, it introduces a heightened level of oversight regarding financial interactions with international parties. Institutions that fail to comply face substantial fines, potentially amounting to as much as 20% of federal funds they receive, which could deter non-compliance but also impose financial hardships on higher education institutions already struggling with budget constraints.

Summary

SB1296, known as the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act, seeks to amend the Higher Education Act of 1965. The bill aims to bolster disclosure requirements concerning foreign gifts and contracts received by institutions of higher education. It specifically mandates that universities report foreign gifts of $50,000 or more and contracts of $5,000 or more, including information about the sources of these funds, the intended use, and any restrictions attached to them. This measure is designed to enhance transparency and protect national interests by ensuring that educational institutions do not fall victim to foreign influence from countries of concern.

Contention

Notably, the bill has generated concern among educational stakeholders regarding its potential for overreach. Critics argue that imposing stringent disclosure requirements could inhibit partnerships and funding opportunities with legitimate foreign sources that do not pose a threat to national security. Additionally, the stipulations around reporting may strain institutional resources, particularly in smaller colleges that may lack the administrative capacity to manage these requirements effectively. The debate centers around balancing national security interests with the need for institutions to maintain global collaborations necessary for research and academic growth.

Congress_id

119-S-1296

Introduced_date

2025-04-03