H.R. 9123

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9123 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9123

To establish intelligence community funding restrictions on 
institutions of higher education that have a relationship with certain 
entities in the People's Republic of China, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 3, 2026

Mr. Fallon introduced the following bill; which was referred to the 
Permanent Select Committee on Intelligence

_______________________________________________________________________

A BILL

To establish intelligence community funding restrictions on 
institutions of higher education that have a relationship with certain 
entities in the People's Republic of China, 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 ``Espionage Prevention Act''.

SEC. 2. FUNDING RESTRICTION ON INSTITUTIONS OF HIGHER EDUCATION THAT 
HAVE A RELATIONSHIP WITH CERTAIN ENTITIES OF THE PEOPLE'S 
REPUBLIC OF CHINA.

The National Security Act of 1947 (50 U.S.C. 3001 et seq.) is 
amended by inserting after section 121 (50 U.S.C. 3061) the following 
new section (and conforming the table of contents at the beginning of 
such Act accordingly):

``SEC. 121A. FUNDING RESTRICTION ON INSTITUTIONS OF HIGHER EDUCATION 
THAT HAVE A RELATIONSHIP WITH CERTAIN ENTITIES OF THE 
PEOPLE'S REPUBLIC OF CHINA.

``(a) Definitions.--In this section:
``(1) Covered entity.--The term `covered entity' means a 
Confucius Institute, Thousand Talents Program, Chinese 
university of concern, or entity on the 1260H list.
``(2) Chinese university of concern.--The term `Chinese 
university of concern' means any university or college in the 
People's Republic of China that--
``(A) is involved in the implementation of 
military-civil fusion;
``(B) participates in the Chinese defense 
industrial base;
``(C) is affiliated with the Chinese State 
Administration for Science, Technology and Industry for 
the National Defense;
``(D) receives funding from any organization 
subordinate to the Central Military Commission of the 
Chinese Communist Party;
``(E) provides support to any security, defense, 
police, or intelligence organization of the Government 
of the People's Republic of China or the Chinese 
Communist Party;
``(F) purposefully undermines the United States 
relationship with Taiwan;
``(G) aids, abets, or enables the detention, 
imprisonment, persecution, or forced labor of Uyghur 
Muslims in the People's Republic of China;
``(H) willfully and knowingly engages in malicious 
activities, including online disinformation campaigns 
and propaganda, for the purpose of interfering with 
United States Federal, State, or local elections; or
``(I) is affiliated with the Chinese Academy of 
Sciences.
``(3) Confucius institute.--The term `Confucius Institute' 
means a cultural institute funded by the Government of the 
People's Republic of China.
``(4) Institution of higher education.--The term 
`institution of higher education' has the meaning given such 
term in section 102 of the Higher Education Act of 1965 (20 
U.S.C. 1002).
``(5) Relationship.--The term `relationship' means, with 
respect to an institution of higher education, any contract 
awarded to or from, agreement entered into with, or in-kind 
donation or gift received from, any covered entity.
``(6) Thousand talents program.--The term `Thousand Talents 
Program' means any technological or educational program funded 
or administered by the Chinese Communist Party's Ministry of 
Industry and Information Technology.
``(7) 1260H list.--The term `1260H list' means the list of 
Chinese military companies operating in the United States most 
recently submitted under section 1260H(b)(1) of the William M. 
(Mac) Thornberry National Defense Authorization Act for Fiscal 
Year 2021 (10 U.S.C. 113 note).
``(b) Restrictions on Institutions of Higher Education.--Except as 
provided by subsection (c), beginning with the first fiscal year that 
begins after the date that is 12 months after the date of the enactment 
of this section, the Director of National Intelligence shall ensure 
that an institution of higher education (referred to in this subsection 
as an `institution') which has a relationship with a covered entity is 
ineligible to receive any funds from any element of the intelligence 
community, unless the institution terminates its relationship with the 
covered entity. Upon termination of any such relationship, the 
ineligibility imposed under this section shall no longer apply.
``(c) Waiver.--
``(1) In general.--The Director of National Intelligence, 
on a case-by-case basis and for a period not to exceed one 
year, may waive the application of the restriction under 
subsection (b) with respect to an institution of higher 
education if the Director determines--
``(A) the institution maintains robust safeguards 
and enforcement protocols to monitor the relationship 
with a covered entity, including active measures to 
detect and deter attempts by Chinese nationals 
affiliated with a covered entity to gain unauthorized 
access to sensitive research, data, or federally funded 
development activities conducted at or on the premises 
of, or by, such institution; and
``(B) either--
``(i) the relationship is in the national 
security interests of the United States; or
``(ii) the relationship does not present a 
direct or indirect national security risk to 
the United States or the allies of the United 
States.
``(2) Renewal.--On an annual basis, the Director may renew 
a waiver issued under paragraph (1) if the Director determines 
all of the conditions described in such paragraph continue to 
be satisfied.
``(3) Effective dates.--A waiver issued or renewed pursuant 
to paragraph (1) or (2), respectively, takes effect and applies 
beginning on the date that is 30 days after such issuance or 
renewal, as the case may be.
``(4) Notification.--If the Director issues or renews a 
waiver pursuant to paragraph (1) or (2), respectively, not 
later than 30 days before such issuance or renewal, as the case 
may be, takes effect, the Director shall submit to the 
Permanent Select Committee on Intelligence of the House of 
Representatives and Select Committee on Intelligence of the 
Senate written notification regarding such issuance or renewal, 
including a justification relating thereto.
``(d) Assistance.--The Director of National Intelligence shall 
provide outreach and, upon request, technical assistance to 
institutions of higher education relating to compliance with this Act.
``(e) Assistance.--The Director of National Intelligence shall 
provide outreach and, upon request, technical assistance to 
institutions of higher education relating to compliance with this 
section.
``(f) Reports.--Not later than 18 months after the date of the 
enactment of this section and annually thereafter, the Director of 
National Intelligence shall submit to the congressional intelligence 
committees a report regarding implementation of this section during the 
immediately preceding 12-month period. Each such report shall include 
information relating to the following:
``(1) Any institution of higher education that has a 
relationship with a covered entity and receives funds from any 
element of the intelligence community.
``(2) The implementation of subsections (b) and (d).''.
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