Plain Language Summary
# DETERRENT Act Summary **What It Does:** The DETERRENT Act increases transparency requirements for colleges and universities regarding their financial relationships with foreign sources. If passed, colleges would need to report to the Department of Education any gifts or contracts from countries of concern (like China or Russia), regardless of amount. For other foreign sources, the reporting threshold would lower from $250,000 to $50,000. The bill also requires disclosure when universities enter contracts with foreign countries of concern after receiving government waivers, and addresses situations where foreign entities substantially control U.S.
educational institutions. **Who It Affects:** This bill primarily impacts colleges and universities that receive funding or gifts from foreign sources. It also affects international students and scholars, as increased scrutiny of foreign funding could influence institutional policies. The Department of Education would handle the new reporting requirements. **Current Status:** The bill has passed the House of Representatives and is now awaiting consideration in the Senate. The stated intent is to address national security concerns by improving oversight of foreign influence in higher education institutions, though supporters and critics may differ on whether the new disclosure thresholds effectively balance transparency with international academic collaboration.
CRS Official Summary
Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act or the DETERRENT ActThis bill expands oversight and disclosure requirements related to foreign sources and institutions of higher education (IHEs).Specifically, the bill requires an IHE to annually disclose to the Department of Education (ED) any year in which the IHEreceives a gift from a foreign country of concern (e.g., China or Russia) or foreign entity of concern of any dollar amount;receives a gift or contract from a foreign source (other than a foreign country of concern or foreign entity of concern) that is valued at $50,000 or more, considered alone or in combination with all other gifts or contracts within a calendar year (current disclosure threshold is $250,000 or more), or which has an undetermined monetary value;enters into a contract with a foreign country of concern or foreign entity of concern after receiving a waiver for such contract; oris substantially controlled by a foreign source.Additionally, the billprohibits IHEs from entering into contracts with a foreign country of concern or with a foreign entity of concern without obtaining a waiver,requires certain IHEs to disclose gifts or contracts between covered individuals (e.g., researchers) and foreign sources, andrequires private IHEs with specified assets or investments to file annual investment disclosure reports.The bill requires ED to investigate possible violations of this bill and outlines the various penalties for each violation. Penalties may include losing eligibility for federal student financial aid.
Latest Action
Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.