H.R. 1048

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1048 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
1st Session
H. R. 1048

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

March 31, 2025

Received; read twice and referred to the Committee on Health, 
Education, Labor, and Pensions

_______________________________________________________________________

AN ACT

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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Defending Education Transparency and 
Ending Rogue Regimes Engaging in Nefarious Transactions Act'' or the 
``DETERRENT Act''.

SEC. 2. DISCLOSURES OF FOREIGN GIFTS.

(a) In General.--Section 117 of the Higher Education Act of 1965 
(20 U.S.C. 1011f) is amended to read as follows:

``SEC. 117. DISCLOSURES OF FOREIGN GIFTS.

``(a) Disclosure Reports.--
``(1) Aggregate gifts and contract disclosures.--An 
institution shall file with the Secretary, in accordance with 
subsection (b)(1), a disclosure report on July 31 of the 
calendar year immediately following any calendar year in 
which--
``(A) the institution receives a gift from, or 
enters into a contract with, a foreign source (other 
than a foreign country of concern or foreign entity of 
concern)--
``(i) the value of which is $50,000 or 
more, considered alone or in combination with 
all other gifts from, or contracts with, that 
foreign source within the calendar year; or
``(ii) the value of which is indeterminate; 
or
``(B) the institution--
``(i) receives a gift from a foreign 
country of concern or foreign entity of 
concern, without regard to the value of such 
gift; or
``(ii) upon receiving a waiver under 
section 117A to enter into a contract with such 
a country or entity, enters into such contract, 
without regard to the value of such contract.
``(2) Foreign source ownership or control disclosures.--
Notwithstanding paragraph (1), in the case of an institution 
that is substantially controlled (as described in section 
668.174(c)(3) of title 34, Code of Federal Regulations) (or 
successor regulations)) by a foreign source, the institution 
shall file with the Secretary, in accordance with subsection 
(b)(2), a disclosure report on July 31 of each year.
``(3) Treatment of affiliated entities.--For purposes of 
this section, any gift to, or contract with, an affiliated 
entity of an institution shall be considered a gift to, or 
contract with, respectively, such institution.
``(b) Contents of Report.--
``(1) Gifts and contracts.--Each report to the Secretary 
required under subsection (a)(1) shall include the following:
``(A) With respect to a gift received from, or a 
contract entered into with, any foreign source--
``(i) the name of the individual, 
department, or other entity at the institution 
receiving the gift or carrying out the contract 
on behalf of the institution;
``(ii) any intended purpose of the gift or 
contract communicated to the institution by the 
foreign source, and, as of the date of filing 
such report, the manner in which the 
institution intends to use such gift or 
contract;
``(iii) in the case of a restricted or 
conditional gift or contract, a description of 
each restriction or condition that meets the 
definition of the term `restricted or 
conditional gift or contract' in subsection 
(f);
``(iv) with respect to such a gift--
``(I) the total fair market dollar 
amount or dollar value of the gift, as 
of the date of submission of such 
report; and
``(II) the date on which the 
institution received such gift;
``(v) with respect to such a contract--
``(I) the total fair market dollar 
amount or dollar value of the contract, 
as of the date of submission of such 
report;
``(II) the date on which the 
institution enters into such contract;
``(III) the date on which such 
contract first takes effect;
``(IV) if the contract has a 
termination date, such termination 
date; and
``(V) an assurance that the 
institution will--
``(aa) maintain an 
unredacted copy of the contract 
until the latest of--

``(AA) the date 
that is 5 years after 
the date on which such 
contract first takes 
effect;

``(BB) the date on 
which the contract 
terminates; or

``(CC) the last day 
of any period that 
applicable State law 
requires a copy of such 
contract to be 
maintained; and

``(bb) upon request of the 
Secretary during an 
investigation under section 
117D(a)(1), produce such an 
unredacted copy of the 
contract.
``(B) With respect to a gift received from, or a 
contract entered into with, a foreign source that is a 
foreign government (other than the government of a 
foreign country of concern)--
``(i) the name of such foreign government;
``(ii) the department, agency, office, or 
division of such foreign government that 
approved such gift or contract, as applicable; 
and
``(iii) the physical mailing address of 
such department, agency, office, or division.
``(C) With respect to a gift received from, or 
contract entered into with, a foreign source other than 
a foreign government subject to the requirements of 
subparagraph (B)--
``(i)(I) the legal name of the foreign 
source; or
``(II) in the case of a gift received from 
a foreign source that awarded such gift to the 
institution as an agent described in subsection 
(f)(4)(G) on behalf of another foreign source--
``(aa) the legal name of the 
foreign source that awarded such gift; 
and
``(bb) the legal name of the 
foreign source on whose behalf the gift 
was awarded, or a statement certified 
by a compliance officer in accordance 
with section 117D(c) that the 
institution has reasonably attempted to 
obtain such name;
``(ii) in the case of a foreign source that 
is a natural person, each country of 
citizenship of such person, or, if no such 
country is known, the principal country of 
residence of such person;
``(iii) in the case of a foreign source 
that is a legal entity, the country in which 
such entity is incorporated, or, if such 
information is not available, the principal 
place of business of such entity;
``(iv) the physical mailing address of such 
foreign source, or, if such address is not 
available, a statement certified by a 
compliance officer in accordance with section 
117D(c) that the institution has reasonably 
attempted to obtain such address; and
``(v) any affiliation of the foreign source 
to an organization that is designated as a 
foreign terrorist organization pursuant to 
section 219 of the Immigration and Nationality 
Act (8 U.S.C. 1189).
``(D) With respect to a contract entered into with 
a foreign source that is a foreign country of concern 
or a foreign entity of concern--
``(i) a complete and unredacted copy of the 
original contract, and if such original 
contract is not in English, a translated copy 
in accordance with subsection (c);
``(ii) a copy of the waiver received under 
section 117A for such contract; and
``(iii) the statement submitted by the 
institution for purposes of receiving such a 
waiver under section 117A(b)(2).
``(E) With respect to a gift received from a 
foreign source that is a foreign country of concern or 
a foreign entity of concern, an assurance that the 
institution will--
``(i) in a case in which the institution 
received documentation relating to such gift, 
maintain such documentation until the latest 
of--
``(I) the date that is 5 years 
after the date such gift was received 
by the institution; or
``(II) the last day of any period 
that applicable State law requires a 
copy of such documentation to be 
maintained; and
``(ii) upon request of the Secretary during 
an investigation under section 117D(a)(1), 
produce such documentation;
``(2) Foreign source ownership or control.--Each report to 
the Secretary required under subsection (a)(2) shall contain--
``(A) the information required under paragraph (1) 
of this subsection;
``(B) the legal name and the mailing address of the 
foreign source that substantially controls the 
institution as described in such subsection;
``(C) the date on which the foreign source assumed 
such substantial control; and
``(D) any changes in program or structure of the 
institution of higher education resulting from such 
substantial control.
``(c) Translation Requirements.--Any information required to be 
disclosed under this section, or requested by the Secretary pursuant to 
an investigation under section 117D(a)(1), with respect to a gift or 
contract that is not in English shall be translated into English, for 
purposes of such disclosure or such investigation, by a person that is 
not--
``(1) a foreign source that awarded such gift or entered 
into such contract; or
``(2) any other foreign source from an attributable country 
of a foreign source referred to in paragraph (1).
``(d) Public Inspection.--
``(1) Database requirement.--Beginning not later than May 
31 of the calendar year following the date of enactment of the 
DETERRENT Act, the Secretary shall--
``(A) establish and maintain a searchable database 
on a website of the Department, under which all reports 
submitted under this section (including, to the extent 
practicable, any report submitted under this section 
before the date of enactment of the DETERRENT Act)--
``(i) are made publicly available (in 
electronic and downloadable format), including 
any information provided in such reports (other 
than the information prohibited from being 
publicly disclosed pursuant to paragraph (2));
``(ii) can be individually identified and 
compared; and
``(iii) to the extent practicable, are 
searchable and sortable--
``(I) by the institution that filed 
such report;
``(II) by the date on which the 
institution filed such report;
``(III) by the date on which the 
institution received the gift which is 
the subject of the report;
``(IV) by the date on which the 
institution enters into the contract 
which is the subject of the report;
``(V) by the date on which such 
contract first takes effect;
``(VI) by the attributable country 
of such gift or contract;
``(VII) by the name of the foreign 
source;
``(VIII) by the information 
described in subparagraph (C)(i); and
``(IX) by the information described 
in subparagraph (C)(ii);
``(B) not later than 30 days after receipt of a 
disclosure report under this section, include such 
report in such database;
``(C) indicate, as part of the public record of a 
report included in such database, whether the report is 
with respect to a gift received from, or a contract 
entered into with--
``(i) a foreign source that is a foreign 
government; or
``(ii) a foreign source that is not a 
foreign government; and
``(D) with respect to a disclosure report that does 
not include the name or address of a foreign source, 
indicate, as part of the public record of such report 
included in such database, that such report did not 
include such information.
``(2) Application of federal privacy law; protections for 
natural persons.--
``(A) Application of federal privacy law.--Except 
as provided in subparagraph (B), a disclosure report 
filed pursuant to this section is not subject to 
Federal privacy law (including any exemption from 
disclosure described in section 552(b) of title 5, 
United States Code)).
``(B) Protections for natural persons.--
``(i) In general.--Except as provided in 
clause (ii), with respect to a disclosure 
report filed under this section, the name or 
address (other than the attributable country) 
of a foreign source that is a natural person--
``(I) may not be publicly 
disclosed; and
``(II) is exempt from disclosure 
under subsection (b)(3) of section 552 
of title 5, United States Code 
(commonly referred to as the Freedom of 
Information Act).
``(ii) Exceptions for contracts with a 
foreign country of concern or foreign entity of 
concern.--Clause (i) shall not apply to a 
disclosure report filed pursuant to this 
section that contains information with respect 
to a contract described in subsection 
(a)(1)(B)(ii) entered into with a foreign 
country of concern or foreign entity of 
concern.
``(e) Interagency Information Sharing.--Notwithstanding any other 
provision of law, not later than 30 days after receiving a disclosure 
report from an institution in compliance with this section, the 
Secretary shall transmit an unredacted copy of such report (including 
the name and address of a foreign source disclosed in such report) to 
the Director of the Federal Bureau of Investigation, the Director of 
National Intelligence, the Director of the Central Intelligence Agency, 
the Secretary of State, the Secretary of Defense, the Attorney General, 
the Secretary of Commerce, the Secretary of Homeland Security, the 
Secretary of Energy, the Director of the National Science Foundation, 
and the Director of the National Institutes of Health.
``(f) Definitions.--In this section:
``(1) Affiliated entity.--The term `affiliated entity', 
when used with respect to an institution, means an entity or 
organization that operates primarily for the benefit of, or 
under the auspices of, such institution, such as a foundation 
of the institution, or an educational, cultural, or language 
entity.
``(2) Attributable country.--The term `attributable 
country' means--
``(A) the country of citizenship of a foreign 
source who is a natural person, or, if such country is 
unknown, the principal residence of such foreign 
source; or
``(B) the country of incorporation of a foreign 
source that is a legal entity, or, if such country is 
unknown, the principal place of business (as 
applicable) of such foreign source.
``(3) Contract.--The term `contract'--
``(A) means--
``(i) any agreement for the acquisition by 
purchase, lease, or barter of property 
(including intellectual property) or services 
by the foreign source;
``(ii) except as provided in subparagraph 
(B)(ii), any agreement for the acquisition by 
purchase, lease, or barter of property 
(including intellectual property) or services 
from a foreign source; and
``(iii) any affiliation, agreement, or 
similar transaction with a foreign source that 
involves the use or exchange of an 
institution's name, likeness, time, services, 
or resources; and
``(B) does not include--
``(i) an agreement made between an 
institution and a foreign source regarding any 
payment of one or more elements of a student's 
cost of attendance (as such term is defined in 
section 472), unless such an agreement is made 
for more than 15 students or is made under a 
restricted or conditional contract;
``(ii) an arms-length agreement for the 
acquisition by purchase, lease, or barter of 
property (including intellectual property) or 
services from a foreign source that is not a 
foreign country of concern or a foreign entity 
of concern; or
``(iii) any assignment or license of a 
granted intellectual property right (including 
a patent, trademark, or copyright) that is not 
associated with a category listed in the 
Commerce Control List maintained by the Bureau 
of Industry and Security of the Department of 
Commerce and set forth in Supplement No. 1 to 
part 774 of title 15, Code of Federal 
Regulations (or successor regulations).
``(4) Foreign source.--The term `foreign source' means--
``(A) a foreign government, including an agency of 
a foreign government;
``(B) a legal entity, governmental or otherwise, 
created under the laws of a foreign state or states;
``(C) a legal entity, governmental or otherwise, 
substantially controlled (as described in section 
668.174(c)(3) of title 34, Code of Federal Regulations) 
(or successor regulations)) by a foreign source;
``(D) a natural person who is not a citizen or a 
national of the United States or a trust territory or 
protectorate thereof;
``(E) an international organization (as such term 
is defined in the International Organizations 
Immunities Act (22 U.S.C. 288));
``(F) a person who is an agent of a foreign 
principal (as such term is defined in section 1 of the 
Foreign Agents Registration Act of 1938 (22 U.S.C. 
611)); and
``(G) an agent of any of the entities described in 
subparagraphs (A) through (F), including--
``(i) a subsidiary or affiliate of a 
foreign legal entity, acting on behalf of such 
an entity; and
``(ii) a person that operates primarily for 
the benefit of, or under the auspices of, such 
an entity, such as a foundation of such entity, 
or an educational, cultural, or language 
entity.
``(5) Gift.--The term `gift'--
``(A) means any gift of money, property (including 
intellectual property), resources, staff, or services; 
and
``(B) does not include--
``(i) any payment of one or more elements 
of a student's cost of attendance (as such term 
is defined in section 472) to an institution 
by, or scholarship from, a foreign source who 
is a natural person, acting in their individual 
capacity and not as an agent for, at the 
request or direction of, or on behalf of, any 
person or entity (except the student), made for 
not more than 15 students, and that is not made 
under a restricted or conditional contract with 
such foreign source;
``(ii) any assignment or license of a 
granted intellectual property right (including 
a patent, trademark, or copyright) that is not 
associated with a category listed in the 
Commerce Control List maintained by the Bureau 
of Industry and Security of the Department of 
Commerce and set forth in Supplement No. 1 to 
part 774 of title 15, Code of Federal 
Regulations (or successor regulations); or
``(iii) decorations (as such term is 
defined in section 7342(a) of title 5, United 
States Code).
``(6) Restricted or conditional gift or contract.--The term 
`restricted or conditional gift or contract' means any 
endowment, gift, grant, contract, award, present, or property 
(including intellectual property) of any kind which includes 
provisions regarding--
``(A) the employment, assignment, or termination of 
faculty;
``(B) the establishment of, or the provision of 
funding for, departments, centers, institutes, 
instructional programs, research or lecture programs, 
or new faculty positions;
``(C) the selection, admission, or education of 
students; or
``(D) the award of grants, loans, scholarships, 
fellowships, or other forms of financial aid restricted 
to students of a specified country, religion, sex, 
ethnic origin, or political opinion.''.
(b) Prohibition on Contracts With Certain Foreign Entities and 
Countries.--Part B of title I of the Higher Education Act of 1965 (20 
U.S.C. 1011 et seq.) is amended by inserting after section 117 the 
following:

``SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN ENTITIES AND 
COUNTRIES.

``(a) In General.--An institution shall not enter into a contract 
with a foreign country of concern or a foreign entity of concern.
``(b) Waivers.--
``(1) In general.--A waiver issued under this section to an 
institution with respect to a contract shall only--
``(A) waive the prohibition under subsection (a) 
for a 1-year period; and
``(B) apply to the terms and conditions of the 
proposed contract submitted as part of the request for 
such waiver.
``(2) Submission.--
``(A) First waiver requests.--
``(i) In general.--An institution that 
desires to enter into a contract with a foreign 
entity of concern or a foreign country of 
concern may submit to the Secretary, not later 
than 120 days before the institution enters 
into such a contract, a request to waive the 
prohibition under subsection (a) with respect 
to such contract.
``(ii) Contents of waiver request.--A 
waiver request submitted by an institution 
under clause (i) shall include--
``(I) the complete and unredacted 
text of the proposed contract for which 
the waiver is being requested, and if 
such original contract is not in 
English, a translated copy of the text 
into English (in a manner that complies 
with section 117(c)); and
``(II) a statement that--
``(aa) is certified by a 
compliance officer of the 
institution designated in 
accordance with section 
117D(c); and
``(bb) includes information 
that demonstrates that such 
contract--

``(AA) is for the 
benefit of the 
institution's mission 
and students; and

``(BB) will promote 
the security, 
stability, and economic 
vitality of the United 
States.

``(B) Renewal waiver requests.--
``(i) In general.--An institution that, 
pursuant to a waiver issued under this section, 
has entered into a contract, the term of which 
is longer than the 1-year waiver period and the 
terms and conditions of which remain the same 
as the proposed contract submitted as part of 
the request for such waiver may submit, not 
later than 120 days before the expiration of 
such waiver period, a request for a renewal of 
such waiver for an additional 1-year period 
(which shall include any information requested 
by the Secretary).
``(ii) Termination.--If the institution 
fails to submit a request under clause (i) or 
is not granted a renewal under such clause, 
such institution shall terminate such contract 
on the last day of the original 1-year waiver 
period.
``(3) Waiver issuance.--The Secretary--
``(A) not later than 60 days before an institution 
enters into a contract pursuant to a waiver request 
under paragraph (2)(A), or before a contract described 
in paragraph (2)(B)(i) is renewed pursuant to a renewal 
request under such paragraph, shall notify the 
institution--
``(i) if the waiver or renewal will be 
issued by the Secretary; and
``(ii) in a case in which the waiver or 
renewal will be issued, the date on which the 
1-year waiver period starts; and
``(B) may only issue a waiver under this section to 
an institution if the Secretary determines, in 
consultation with each individual listed in section 
117(e), that the contract for which the waiver is being 
requested--
``(i) is for the benefit of the 
institution's mission and students; and
``(ii) will promote the security, 
stability, and economic vitality of the United 
States.
``(4) Disclosure.--Not less than 2 weeks prior to issuing a 
waiver under paragraph (2), the Secretary shall notify the 
authorizing committees of the intent to issue the waiver, 
including a justification for the waiver.
``(c) Designation During Contract Term.--In the case of an 
institution that enters into a contract with a foreign source that is 
not a foreign country of concern or a foreign entity of concern but 
which, during the term of such contract, is designated as a foreign 
country of concern or foreign entity of concern, such institution shall 
terminate such contract not later than 60 days after the Secretary 
notifies the institution of such designation.
``(d) Contracts Prior to Date of Enactment.--
``(1) In general.--In the case of an institution that has 
entered into a contract with a foreign country of concern or 
foreign entity of concern prior to the date of enactment of the 
DETERRENT Act--
``(A) the institution shall as soon as practicable, 
but not later than 30 days after such date of 
enactment, submit to the Secretary a waiver request in 
accordance with clause (ii) of subsection (b)(2)(A); 
and
``(B) the Secretary shall, upon receipt of the 
request submitted under such clause, issue a waiver to 
the institution for a period beginning on the date on 
which the waiver is issued and ending on the sooner 
of--
``(i) the date that is 1 year after the 
date of enactment of the DETERRENT Act; or
``(ii) the date on which the contract 
terminates.
``(2) Renewal.--An institution that has entered into a 
contract described in paragraph (1), the term of which is 
longer than the waiver period described in subparagraph (B) of 
such paragraph and the terms and conditions of which remain the 
same as the contract submitted as part of the request required 
under subparagraph (A) of such paragraph, may submit a request 
for renewal of the waiver issued under such paragraph in 
accordance with subsection (b)(2)(B).
``(e) Contract Defined.--The term `contract' has the meaning given 
such term in section 117(f).''.
(c) Interagency Information Sharing.--Notwithstanding any other 
provision of law, not later than 90 days after the date of enactment of 
this Act, the Secretary of Education shall transmit to each individual 
listed in section 117(e) of the Higher Education Act of 1965, as 
amended by this Act--
(1) an unredacted copy of each report (including the name 
and address of a foreign source disclosed in such report) 
received by the Department of Education under section 117 of 
the Higher Education Act of 1965 (20 U.S.C. 1011f) prior to the 
date of enactment of this Act); and
(2) any report, document, or other record generated by the 
Department of Education in the course of an investigation--
(A) of an institution with respect to the 
compliance of such institution with such section; and
(B) initiated prior to the date of enactment of 
this Act.

SEC. 3. POLICY REGARDING CONFLICTS OF INTEREST FROM FOREIGN GIFTS AND 
CONTRACTS.

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as 
amended by the preceding section, is further amended by inserting after 
section 117A the following:

``SEC. 117B. INSTITUTIONAL POLICY REGARDING FOREIGN GIFTS AND CONTRACTS 
TO FACULTY AND STAFF.

``(a) Requirement to Maintain Policy and Database.--Beginning not 
later than 90 days after the date of enactment of the DETERRENT Act, 
each institution described in subsection (b) shall maintain--
``(1) a policy requiring covered individuals at the 
institution and covered individuals at affiliated entities of 
the institution to disclose in a report to such institution by 
July 31 of each calendar year that begins after the year in 
which such enactment date occurs--
``(A) any gift received from a foreign source in 
the previous calendar year, the value of which is 
greater than the minimal value (as such term is defined 
in section 7342(a) of title 5, United States Code) or 
is of indeterminate value, and including the date on 
which the gift was received;
``(B) any contract with a foreign source (other 
than a foreign country of concern or foreign entity of 
concern) entered into or in effect during the previous 
calendar year, the value of which is $5,000 or more, 
considered alone or in combination with all other 
contracts with that foreign source within the calendar 
year, and including the date on which such contract is 
entered into, the date on which the contract first 
takes effect, and, as applicable, the date on which 
such contract terminates;
``(C) any contract with a foreign source (other 
than a foreign country of concern or foreign entity of 
concern) entered into or in effect during the previous 
calendar year that has an indeterminate monetary value, 
and including the date on which such contract is 
entered into, the date on which the contract first 
takes effect, and, as applicable, the date on which 
such contract terminates; and
``(D) any contract entered into or in effect with a 
foreign country of concern or foreign entity of concern 
during the previous calendar year, the value of which 
is $0 or more or which has an indeterminate monetary 
value, and including--
``(i) the date on which such contract is 
entered into;
``(ii) the date on which the contract first 
takes effect;
``(iii) if the contract has a termination 
date, such termination date; and
``(iv) the full text of such contract and 
any addenda;
``(2) a publicly available and searchable database (in 
electronic and downloadable format), on a website of the 
institution, of the information required to be disclosed under 
paragraph (1) (other than the information prohibited from 
public disclosure pursuant to subsection (c)) that--
``(A) makes available the information disclosed 
under paragraph (1) (other than the information 
prohibited from public disclosure pursuant to 
subsection (c)) beginning on the date that is 30 days 
after receipt of the report under such paragraph 
containing such information and until the latest of--
``(i) the date that is 5 years after the 
date on which--
``(I) a gift referred to in 
paragraph (1)(A) is received; or
``(II) a contract referred to in 
subparagraph (B), (C) or (D) of 
paragraph (1) first takes effect;
``(ii) the date on which a contract 
referred to in subparagraph (B), (C) or (D) of 
paragraph (1) terminates; or
``(iii) the last day of any period that 
applicable State law requires a copy of such 
contract to be maintained; and
``(B) is searchable and sortable--
``(i) if the subject of the disclosure is a 
gift, by the date on which the gift is 
received;
``(ii) if the subject of the disclosure is 
a contract--
``(I) by the date on which such 
contract is entered into; and
``(II) by the date on which such 
contract first takes effect;
``(iii) by the attributable country with 
respect to which information is being 
disclosed;
``(iv)(I) if the covered individual at an 
institution is making the disclosure, by the 
most specific division of the institution (such 
as the department, school, or college) that the 
covered individual is at; and
``(II) if the covered individual at the 
affiliated entity of the institution is making 
the disclosure, by the name of such affiliated 
entity;
``(v) by the name of the foreign source; 
and
``(3) an effective plan to identify and manage potential 
information gathering by foreign sources through espionage 
targeting covered individuals that may arise from gifts 
received from, or contracts entered into with, a foreign 
source, including through the use of--
``(A) periodic communications;
``(B) accurate reporting under paragraph (2) of the 
information required to be disclosed under paragraph 
(1); and
``(C) enforcement of the policy described in 
paragraph (1); and
``(4) for purposes of investigations under section 
117D(a)(1), a record of the name of each individual who makes a 
disclosure under paragraph (1) and each report disclosed under 
such paragraph.
``(b) Institutions.--An institution shall be subject to the 
requirements of this section if such institution--
``(1) received more than $50,000,000 in Federal funds in 
any of the previous five calendar years to support (in whole or 
in part) research and development (as determined by the 
institution and measured by the Higher Education Research and 
Development Survey of the National Center for Science and 
Engineering Statistics); or
``(2) receives funds under title VI.
``(c) Application of Federal Privacy Law; Protections for Natural 
Persons.--
``(1) Application of federal privacy law.--Except as 
provided in paragraph (2), a disclosure made pursuant to this 
section is not subject to Federal privacy law.
``(2) Protections for natural persons.--
``(A) In general.--Except as provided in 
subparagraph (B), with respect to a disclosure made 
pursuant to this section, the following may not be 
publicly disclosed:
``(i) The name or address (other than the 
attributable country) of a foreign source that 
is a natural person.
``(ii) The name or any other personally 
identifiable information of a covered 
individual making such disclosure.
``(B) Exceptions for contracts with a foreign 
country of concern or foreign entity of concern.--
Subparagraph (A) shall not apply to a disclosure made 
pursuant to this section that contains information with 
respect to a contract entered into with a foreign 
country of concern or foreign entity of concern.
``(d) Definitions.--In this section--
``(1) the terms `affiliated entity', `attributable 
country', `foreign source', and `gift' have the meanings given 
such terms in section 117(f);
``(2) the term `contract'--
``(A) means--
``(i) any agreement for the acquisition by 
purchase, lease, or barter of property 
(including intellectual property) or services 
by the foreign source;
``(ii) except as provided in subparagraph 
(B), any agreement for the acquisition by 
purchase, lease, or barter of property 
(including intellectual property) or services 
from a foreign source; and
``(iii) any affiliation, agreement, or 
similar transaction with a foreign source that 
involves the use or exchange of a covered 
individual's name, likeness, time, services, or 
resources; and
``(B) does not include--
``(i) an arms-length agreement for the 
acquisition by purchase, lease, or barter of 
property (including intellectual property) or 
services from a foreign source that is not a 
foreign country of concern or a foreign entity 
of concern; and
``(ii) any assignment or license of a 
granted intellectual property right (including 
a patent, trademark, or copyright) that is not 
associated with a category listed in the 
Commerce Control List maintained by the Bureau 
of Industry and Security of the Department of 
Commerce and set forth in Supplement No. 1 to 
part 774 of title 15, Code of Federal 
Regulations (or successor regulations); and
``(3) the term `covered individual'--
``(A) has the meaning given such term in section 
223(d) of the William M. (Mac) Thornberry National 
Defense Authorization Act for Fiscal Year 2021 (42 
U.S.C. 6605); and
``(B) shall be interpreted in accordance with the 
Guidance for Implementing National Security 
Presidential Memorandum 33 (NSPM-33) on National 
Security Strategy for United States Government-
Supported Research and Development published by the 
Subcommittee on Research Security and the Joint 
Committee on the Research Environment in January 2022 
(or any successor guidance).''.

SEC. 4. INVESTMENT DISCLOSURE REPORT.

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as 
amended by this Act, is further amended by inserting after section 117B 
the following:

``SEC. 117C. INVESTMENT DISCLOSURE REPORT.

``(a) Investment Disclosure Report.--A specified institution shall 
file a disclosure report in accordance with subsection (b) with the 
Secretary on each July 31 immediately following any calendar year in 
which the specified institution purchases, sells, or holds (directly or 
indirectly through any chain of ownership) one or more investments of 
concern.
``(b) Contents of Report.--Each report to the Secretary required by 
subsection (a) shall contain, with respect to the calendar year 
preceding the calendar year in which such report is filed, the 
following information:
``(1) A list of the investments of concern purchased, sold, 
or held during such calendar year.
``(2) The aggregate fair market value of all investments of 
concern held as of the close of such calendar year.
``(3) The combined value of all investments of concern sold 
over the course of such calendar year, as measured by the fair 
market value of such investments at the time of the sale.
``(4) The combined value of all capital gains from such 
sales of investments of concern.
``(c) Treatment of Certain Pooled Investments.--
``(1) Pooled investment classification.--
``(A) In general.--For purposes of this section, 
except as provided in subparagraph (B), a specified 
interest acquired by a specified institution in a 
regulated investment company, exchange traded fund, or 
any other pooled investment that holds an investment of 
concern shall be treated as an investment of concern 
and shall be reported pursuant to paragraph (2)(A).
``(B) Certification of pooled investment.--
Notwithstanding subparagraph (A), such specified 
interest shall not be subject to subparagraph (A) if 
the Secretary certifies, pursuant to paragraph (2)(B), 
that such pooled investment is not holding an 
investment of concern.
``(2) Procedures.--The Secretary, after consultation with 
the Secretary of the Treasury and the Securities and Exchange 
Commission, shall establish procedures under which a pooled 
investment described in paragraph (1)--
``(A) shall be reported in accordance with the 
requirements of subsection (b); and
``(B) may be certified under paragraph (1)(B) as 
not holding an investment of concern.
``(d) Treatment of Related Organizations.--For purposes of this 
section, assets held by any related organization (as defined in section 
4968(d)(2) of the Internal Revenue Code of 1986) with respect to a 
specified institution shall be treated as held by such specified 
institution, except that--
``(1) such assets shall not be taken into account with 
respect to more than 1 specified institution; and
``(2) unless such organization is controlled by such 
institution or is described in section 509(a)(3) of the 
Internal Revenue Code of 1986 with respect to such institution, 
assets which are not intended or available for the use or 
benefit of such specified institution shall not be taken into 
account.
``(e) Valuation of Debt.--For purposes of this section, the fair 
market value of any debt shall be the outstanding principal amount of 
such debt.
``(f) Regulations.--The Secretary, after consultation with the 
Secretary of the Treasury and the Securities and Exchange Commission, 
may issue such regulations or other guidance as may be necessary or 
appropriate to carry out the purposes of this section, including 
regulations or other guidance providing for the proper application of 
this section with respect to certain regulated investment companies, 
exchange traded funds, and pooled investments.
``(g) Database Requirement.--Beginning not later than May 31 of the 
calendar year following the date of enactment of the DETERRENT Act, the 
Secretary shall--
``(1) establish and maintain a searchable database on a 
website of the Department, under which all reports submitted 
under this section--
``(A) are made publicly available (in electronic 
and downloadable format), including any information 
provided in such reports;
``(B) can be individually identified and compared; 
and
``(C) are searchable and sortable; and
``(2) not later than 30 days after receipt of a disclosure 
report under this section, include such report in such 
database.
``(h) Definitions.--In this section:
``(1) Investment of concern.--
``(A) In general.--The term `investment of concern' 
means any specified interest with respect to any of the 
following:
``(i) A foreign country of concern.
``(ii) A foreign entity of concern.
``(B) Specified interest.--The term `specified 
interest' means, with respect to any entity--
``(i) stock or any other equity or profits 
interest of such entity;
``(ii) debt issued by such entity; and
``(iii) any contract or derivative with 
respect to any property described in clause (i) 
or (ii).
``(2) Specified institution.--
``(A) In general.--The term `specified 
institution', as determined with respect to any 
calendar year, means an institution that--
``(i) is not a public institution; and
``(ii) at the close of such calendar year, 
holds--
``(I) assets (other than those 
assets which are used directly in 
carrying out the institution's exempt 
purpose) the aggregate fair market 
value of which is in excess of 
$6,000,000,000; and
``(II) investments of concern the 
aggregate fair market value of which is 
in excess of $250,000,000.
``(B) References to certain terms.--For the purpose 
of applying the definition under subparagraph (A), the 
terms `aggregate fair market value' and `assets which 
are used directly in carrying out the institution's 
exempt purpose' shall be applied in the same manner as 
such terms are applied for the purposes of section 
4968(b)(1)(D) of the Internal Revenue Code of 1986.''.

SEC. 5. ENFORCEMENT AND OTHER GENERAL PROVISIONS.

(a) Enforcement and Other General Provisions.--The Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.), as amended by this Act, is 
further amended by inserting after section 117C the following:

``SEC. 117D. ENFORCEMENT; SINGLE POINT-OF-CONTACT; INSTITUTIONAL 
REQUIREMENTS.

``(a) Enforcement.--
``(1) Investigation.--The Secretary (acting through the 
General Counsel of the Department) shall conduct investigations 
of possible violations of sections 117, 117A, 117B, 117C, and 
subsection (c) of this section by institutions and, whenever it 
appears that an institution has knowingly or willfully failed 
to comply with a requirement of any of such provisions 
(including any rule or regulation promulgated under any such 
provision), shall request that the Attorney General bring a 
civil action in accordance with paragraph (2).
``(2) Civil action.--Whenever it appears that an 
institution has knowingly or willfully failed to comply with a 
requirement of any of the provisions listed in paragraph (1) 
(including any rule or regulation promulgated under any such 
provision) based on an investigation under such paragraph, a 
civil action shall be brought by the Attorney General, at the 
request of the Secretary, in an appropriate district court of 
the United States, or the appropriate United States court of 
any territory or other place subject to the jurisdiction of the 
United States, to request such court to compel compliance with 
the requirement of the provision that has been violated.
``(3) Costs and other fines.--An institution that is 
compelled to comply with a requirement of a provision listed in 
paragraph (1) pursuant to paragraph (2) shall--
``(A) pay to the Treasury of the United States the 
full costs to the United States of obtaining compliance 
with the requirement of such provision, including all 
associated costs of investigation and enforcement; and
``(B) if applicable, be subject to the applicable 
fines described in paragraph (4).
``(4) Fines for violations.--The Secretary shall impose a 
fine on an institution that is compelled to comply with a 
requirement of a section listed in paragraph (1) pursuant to 
paragraph (2) as follows:
``(A) Section 117.--
``(i) First-time violations.--In the case 
of an institution that is compelled to comply 
with a requirement of section 117 pursuant to a 
civil action described in paragraph (2), and 
that has not previously been compelled to 
comply with any such requirement pursuant to 
such a civil action, the Secretary shall impose 
a fine on the institution for such violation as 
follows:
``(I) In the case of an institution 
that knowingly or willfully fails to 
comply with a reporting requirement 
under subsection (a)(1) of section 117, 
such fine shall be in an amount that 
is--
``(aa) for each gift or 
contract with determinable 
value that is the subject of 
such a failure to comply, the 
greater of--

``(AA) $50,000; or

``(BB) the monetary 
value of such gift or 
contract; or

``(bb) for each gift or 
contract of no value or of 
indeterminable value, not less 
than 1 percent and not more 
than 10 percent of the total 
amount of Federal funds 
received by the institution 
under this Act for the most 
recent fiscal year.
``(II) In the case of an 
institution that knowingly or willfully 
fails to comply with the reporting 
requirement under subsection (a)(2) of 
section 117, such fine shall be in an 
amount that is not less than 10 percent 
of the total amount of Federal funds 
received by the institution under this 
Act for the most recent fiscal year.
``(ii) Subsequent violations.--In the case 
of an institution that has previously been 
compelled to comply with a requirement of 
section 117 pursuant to a civil action 
described in paragraph (2), and is subsequently 
compelled to comply with such a requirement 
pursuant to a subsequent civil action described 
in paragraph (2), the Secretary shall impose a 
fine on the institution as follows:
``(I) In the case of an institution 
that knowingly or willfully fails to 
comply with a reporting requirement 
under subsection (a)(1) of section 117, 
such fine shall be in an amount that 
is--
``(aa) for each gift or 
contract with determinable 
value that is the subject of 
such a failure to comply, the 
greater of--

``(AA) $100,000; or

``(BB) twice the 
monetary value of such 
gift or contract; or

``(bb) for each gift or 
contract of no value or of 
indeterminable value, not less 
than 5 percent and not more 
than 10 percent of the total 
amount of Federal funds 
received by the institution 
under this Act for the most 
recent fiscal year.
``(II) In the case of an 
institution that knowingly or willfully 
fails to comply with a reporting 
requirement under subsection (a)(2) of 
section 117, such fine shall be in an 
amount that is not less than 20 percent 
of the total amount of Federal funds 
received by the institution under this 
Act for the most recent fiscal year.
``(B) Section 117a.--
``(i) First-time violations.--In the case 
of an institution that is compelled to comply 
with a requirement of section 117A pursuant to 
a civil action described in paragraph (2), and 
that has not previously been compelled to 
comply with any such requirement pursuant to 
such a civil action, the Secretary shall impose 
a fine on the institution in an amount that is 
not less than 5 percent and not more than 10 
percent of the total amount of Federal funds 
received by the institution under this Act for 
the most recent fiscal year.
``(ii) Subsequent violations.--In the case 
of an institution that has previously been 
compelled to comply with a requirement of 
section 117A pursuant to a civil action 
described in paragraph (2), and is subsequently 
compelled to comply with such a requirement 
pursuant to a subsequent civil action described 
in paragraph (2), the Secretary shall impose a 
fine on the institution in an amount that is 
not less than 20 percent of the total amount of 
Federal funds received by the institution under 
this Act for the most recent fiscal year.
``(C) Section 117b.--
``(i) First-time violations.--In the case 
of an institution that is compelled to comply 
with a requirement of section 117B pursuant to 
a civil action described in paragraph (2), and 
that has not previously been compelled to 
comply with any such requirement pursuant to 
such a civil action, the Secretary shall impose 
a fine on the institution for such violation in 
an amount that is the greater of--
``(I) $250,000; or
``(II) the total amount of gifts or 
contracts that the institution is 
compelled to report pursuant to such 
civil action.
``(ii) Subsequent violations.--In the case 
of an institution that has previously been 
compelled to comply with a requirement of 
section 117B pursuant to a civil action 
described in paragraph (2), and is subsequently 
compelled to comply with such a requirement 
pursuant to a subsequent civil action described 
in paragraph (2), the Secretary shall impose a 
fine on the institution in an amount that is 
the greater of--
``(I) $500,000; or
``(II) twice the total amount of 
gifts or contracts that the institution 
is compelled to report pursuant to such 
civil action.
``(D) Section 117c.--
``(i) First-time violations.--In the case 
of an institution that is compelled to comply 
with a requirement of section 117C pursuant to 
a civil action described in paragraph (2), and 
that has not previously been compelled to 
comply with any such requirement pursuant to 
such a civil action, the Secretary shall impose 
a fine on the institution in an amount that is 
not less than 50 percent and not more than 100 
percent of the sum of--
``(I) the aggregate fair market 
value of all investments of concern 
held by such institution as of the 
close of the final calendar year for 
which the institution is compelled to 
comply with such requirement pursuant 
to such civil action; and
``(II) the combined value of all 
investments of concern sold over the 
course of all the calendar years for 
which the institution is compelled to 
comply with such requirement pursuant 
to such civil action, as measured by 
the fair market value of such 
investments at the time of the sale.
``(ii) Subsequent violations.--In the case 
of an institution that has previously been 
compelled to comply with a requirement of 
section 117C pursuant to a civil action 
described in paragraph (2), and is subsequently 
compelled to comply with such a requirement 
pursuant to a subsequent civil action described 
in paragraph (2), the Secretary shall impose a 
fine on the institution in an amount that is 
not less than 100 percent and not more than 200 
percent of the sum of--
``(I) the aggregate fair market 
value of all investments of concern 
held by such institution as of the 
close of the final calendar year for 
which the institution is compelled to 
comply with such requirement pursuant 
to such subsequent civil action; and
``(II) the combined value of all 
investments of concern over the course 
of all the calendar years for which the 
institution is compelled to comply with 
such requirement pursuant to such 
subsequent civil action, as measured by 
the fair market value of such 
investments at the time of the sale.
``(E) Ineligibility for waiver.--In the case of an 
institution that is fined pursuant to subparagraph 
(A)(ii), (B)(ii), (C)(ii), or (D)(ii), the Secretary 
shall prohibit the institution from obtaining a waiver, 
or a renewal of a waiver, under section 117A.
``(b) Single Point-of-contact at the Department.--The Secretary 
shall maintain a single point-of-contact at the Department to--
``(1) receive and respond to inquiries and requests for 
technical assistance from institutions regarding compliance 
with the requirements of sections 117, 117A, 117B, 117C, and 
subsection (c) of this section;
``(2) coordinate and implement technical improvements to 
the database described in section 117(d)(1), including--
``(A) improving upload functionality by allowing 
for batch reporting, including by allowing institutions 
to upload one file with all required information into 
the database;
``(B) publishing and maintaining a database users 
guide, which shall be reviewed and updated as 
practicable but not less than annually, including 
information on how to edit an entry and how to report 
errors;
``(C) creating a standing user group (to which 
chapter 10 of title 5, United States Code, shall not 
apply) to discuss possible database improvements, which 
group shall--
``(i) include at least--
``(I) 3 members representing public 
institutions with high or very high 
levels of research activity (as defined 
by the National Center for Education 
Statistics);
``(II) 2 members representing 
private, nonprofit institutions with 
high or very high levels of research 
activity (as so defined);
``(III) 2 members representing 
proprietary institutions of higher 
education (as defined in section 
102(b)); and
``(IV) 2 members representing area 
career and technical education schools 
(as defined in subparagraph (C) or (D) 
of section 3(3) of the Carl D. Perkins 
Career and Technical Education Act of 
2006 (20 U.S.C. 2302(3))); and
``(ii) meet at least twice a year with 
officials from the Department to discuss 
possible database improvements;
``(D) publishing, on a publicly available website, 
recommended database improvements following each 
meeting described in subparagraph (C)(ii); and
``(E) responding, on a publicly available website, 
to each recommendation published under subparagraph (D) 
as to whether or not the Department will implement the 
recommendation, including the rationale for either 
approving or rejecting the recommendation;
``(3) provide, every 90 days after the date of enactment of 
the DETERRENT Act, status updates on any pending or completed 
investigations and civil actions under subsection (a)(1) to--
``(A) the authorizing committees; and
``(B) any institution that is the subject of such 
investigation or action;
``(4) maintain, on a publicly accessible website--
``(A) a full comprehensive list of all foreign 
countries of concern and foreign entities of concern; 
and
``(B) the date on which the last update was made to 
such list; and
``(5) not later than 7 days after making an update to the 
list maintained under paragraph (4)(A), notify each institution 
required to comply with the sections listed in paragraph (1) of 
such update.
``(c) Institutional Requirements for Compliance Officers and 
Institutional Policy Requirements.--
``(1) In general.--An institution that is required to file 
a report under section 117 or 117C, that is seeking a waiver 
under section 117A, or that is subject to the requirements of 
section 117B, shall, not later than the earlier of the date on 
which the institution files the first report under section 117 
or 117C, requests the institution's first waiver under section 
117A, or first fulfills the requirements of section 117B--
``(A) establish an institutional policy that the 
institution shall follow in meeting the requirements of 
sections 117, 117A, 117B, and 117C; and
``(B) designate and maintain at least one, but not 
more than three, current employees or legally 
authorized agents of such institution to serve as 
compliance officers to carry out the requirements 
listed in paragraph (2).
``(2) Duties of compliance officers.--A compliance officer 
designated by an institution under paragraph (1)(B) shall 
certify--
``(A) whenever the institution is required to file 
a report under section 117 or 117C--
``(i) the institution's accurate compliance 
with the reporting requirements under such 
section;
``(ii) that the institution, in filing such 
report under section 117 or 117C--
``(I) followed the institutional 
policy established under paragraph 
(1)(A) applicable to such section; and
``(II) conducted good faith efforts 
and reasonable due diligence to ensure 
that accurate information is provided 
in such report, including with respect 
to the valuations of any assets that 
are disclosed in a report submitted 
under section 117C; and
``(iii) in the case of a report under 
section 117, any statements by the institution 
required to be certified by such an officer 
under clause (i) or (iv) of section 
117(b)(1)(C); and
``(B) whenever the institution requests a waiver 
under section 117A--
``(i) that the institution--
``(I) is in compliance with the 
requirements of such section; and
``(II) followed the institutional 
policy established under paragraph 
(1)(A) applicable to such section; and
``(ii) the statement by the institution 
required to be certified by such an officer 
under section 117A(b)(2)(A)(ii)(II); and
``(C) whenever the institution is subject to the 
requirements of section 117B, that the institution--
``(i) is in compliance with the 
requirements of such section; and
``(ii) followed the institutional policy 
established under paragraph (1)(A) applicable 
to such section.
``(d) Definitions.--For purposes of sections 117, 117A, 117B, 117C, 
and this section:
``(1) Foreign country of concern.--The term `foreign 
country of concern' means the following:
``(A) Any covered nation defined in section 4872 of 
title 10, United States Code, including any special 
administrative region within such a covered nation or 
any other territory that the United States recognizes 
as being under the control of such a covered nation on 
or after the date of the enactment of this subsection.
``(B) Any country the Secretary, in consultation 
with the Secretary of Defense, the Secretary of State, 
and the Director of National Intelligence, determines, 
for purposes of sections 117, 117A, 117B, 117C, or this 
section, to be engaged in conduct that is detrimental 
to the national security or foreign policy of the 
United States.
``(2) Foreign entity of concern.--The term `foreign entity 
of concern' has the meaning given such term in section 10612(a) 
of the Research and Development, Competition, and Innovation 
Act (42 U.S.C. 19221(a)) and includes--
``(A) a foreign entity that is identified on the 
list published under section 1286(c)(9)(A) of the John 
S. McCain National Defense Authorization Act for Fiscal 
Year 2019 (10 U.S.C. 4001 note; Public Law 115-232); 
and
``(B) a Chinese military company that is identified 
on the list required by section 1260H of the William M. 
(Mac) Thornberry National Defense Authorization Act for 
Fiscal Year 2021 (10 U.S.C. 113 note; Public Law 116-
283).
``(3) Institution.--The term `institution' means an 
institution of higher education (as such term is defined in 
section 102, other than an institution described in subsection 
(a)(1)(C) of such section) with a program participation 
agreement under section 487.''.
(b) Program Participation Agreement.--Section 487(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1094) is amended by adding at the end 
the following:
``(30)(A) An institution will comply with the requirements 
of sections 117, 117A, 117B, 117C, and 117D(c).
``(B) In the case of an institution described in 
subparagraph (C), the institution will--
``(i) be ineligible to participate in the programs 
authorized by this title for a period of not less than 
2 institutional fiscal years; and
``(ii) in order to regain eligibility to 
participate in such programs, demonstrate compliance 
with all requirements of each such section for not less 
than 2 institutional fiscal years after the 
institutional fiscal year in which such institution 
became ineligible.
``(C) An institution described in this subparagraph is an 
institution--
``(i) against which judgment has been granted in 3 
separate civil actions described in section 117D(a)(2) 
that have each resulted in the institution being 
compelled to comply with one or more requirements of 
section 117, 117A, 117B, 117C, or 117D(c); and
``(ii) that pursuant to section 117D(a)(4)(E), is 
prohibited from obtaining a waiver, or a renewal of a 
waiver, under section 117A.''.
(c) GAO Study and Report.--
(1) Study.--Not later than January 31 of the second 
calendar year that begins after the date of enactment of this 
Act, the Comptroller General of the United States shall 
initiate a study to identify ways to improve intergovernmental 
agency coordination regarding implementation and enforcement of 
sections 117, 117A, 117B, 117C, and 117D(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1011f), as amended or added by 
this Act, including increasing information sharing, increasing 
compliance rates, and establishing processes for enforcement.
(2) Report.--Not later than 3 years after the date of the 
initiation of the study under paragraph (1), the Comptroller 
General of the United States shall submit to Congress, and make 
public, a report containing the results of the study described 
in paragraph (1).

Passed the House of Representatives March 27, 2025.

Attest:

KEVIN F. MCCUMBER,

Clerk.