H.R. 938

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 938 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 938

To amend the Higher Education Act of 1965 to restrict contracts with 
foreign countries of concern and foreign entities of concern.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 4, 2025

Mr. Harris of North Carolina (for himself and Mr. Owens) introduced the 
following bill; which was referred to the Committee on Education and 
Workforce

_______________________________________________________________________

A BILL

To amend the Higher Education Act of 1965 to restrict contracts with 
foreign countries of concern and foreign entities of concern.

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 ``No Contracts with Foreign 
Adversaries Act''.

SEC. 2. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN ENTITIES AND 
COUNTRIES.

(a) In General.--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 by a person that is not an 
affiliated entity or agent of the 
foreign source involved with such 
contract; and
``(II) a statement that--
``(aa) is certified by the 
compliance officer of the 
institution designated in 
accordance with subsection (e); 
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 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, 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--
``(A) the Committee on Education and Workforce of 
the House of Representatives; and
``(B) the Committee on Health, Education, Labor, 
and Pensions of the Senate,
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 
No Contracts with Foreign Adversaries 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 No Contracts with 
Foreign Adversaries 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) Compliance Officer.--Any institution that submits a waiver 
under this section shall designate, before the submission of such 
waiver, and maintain, a compliance officer, who shall--
``(1) be a current employee or legally authorized agent of 
such institution; and
``(2) be responsible, on behalf of the institution, for 
personally certifying accurate compliance with the waiver 
requirements under this section.
``(f) Enforcement.--
``(1) Investigation.--The Secretary (acting through the 
General Counsel of the Department) shall conduct investigations 
of possible violations of this section by institutions and, 
whenever it appears that an institution has knowingly or 
willfully failed to comply with a requirement of this section 
(including any rule or regulation promulgated under this 
section), 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 this section (including any rule or regulation 
promulgated under this section) 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 this section that has 
been violated.
``(3) Costs and other fines.--An institution that is 
compelled to comply with a requirement of this section 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 such requirement, including all associated costs 
of investigation and enforcement; and
``(B) 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 this section pursuant to paragraph (2) as 
follows:
``(A) First-time violations.--In the case of an 
institution that knowingly or willfully fails to comply 
with a requirement of this section for the first time, 
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.
``(B) Subsequent violations.--In the case of an 
institution that has been fined pursuant to 
subparagraph (A), the Secretary shall impose a fine on 
the institution for each subsequent time the 
institution knowingly or willfully fails to comply with 
a requirement of this section 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) Ineligibilty for waiver.--In the case of an 
institution that has been fined pursuant to 
subparagraph (A) with respect to a calendar year, and 
that knowingly or willfully fails to comply with a 
requirement of this section with respect to any 2 
additional calendar years, the Secretary shall prohibit 
the institution from obtaining a waiver, or a renewal 
of a waiver, under this section.
``(g) Definitions.--In this section:
``(1) Contract.--The term `contract'--
``(A) means--
``(i) any agreement for the acquisition by 
purchase, lease, or barter of property or 
services by the foreign source;
``(ii) 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
``(iii) any agreement for the acquisition 
by purchase, lease, or barter, of property or 
services from a foreign source (other than an 
arms-length agreement for such acquisition from 
a foreign source that is not a foreign country 
of concern or a foreign entity of concern); and
``(B) does not include 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.
``(2) 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.
``(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 section 117 or this section, to be 
engaged in conduct that is detrimental to the national 
security or foreign policy of the United States.
``(3) 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 foreign entity that is 
identified on the list published under section 1286(c)(8)(A) of 
the John S. McCain National Defense Authorization Act for 
Fiscal Year 2019 (10 U.S.C. 22 4001 note; Public Law 115-232).
``(4) 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).''.
(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 section 117A.
``(B) An institution that, for 3 consecutive institutional 
fiscal years, violates any requirement of section 117A shall--
``(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.''.
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