119-hr1048

[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.