I 
119TH CONGRESS 
1ST SESSION H. R. 3284 
To require audits of institutions with respect to disclosures of foreign gifts, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 8, 2025 
Mr. GILL of Texas introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on 
Education and Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To require audits of institutions with respect to disclosures 
of foreign gifts, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. AUDITS OF INSTITUTIONS WITH RESPECT TO 
DISCLOSURES OF FOREIGN GIFTS. 
Section 117 of the Higher Education Act of 1965 (20 
U.S.C. 1011f) is amended— 
(1) by redesignating subsections (g) and (h) as 
subsections (h) and (i), respectively; and 
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(2) by inserting after subsection (f) the fol-
lowing: 
‘‘(g) AUDIT.— 
‘‘(1) IN GENERAL.—Beginning not later than 
60 days after the date of enactment of this sub-
section, and every 2 years thereafter, the Secretary 
shall conduct an audit of no fewer than 30 institu-
tions to assess compliance with the reporting re-
quirements under this section. 
‘‘(2) DETERMINATION
OF
INSTITUTIONS
TO 
AUDIT.—In determining which institutions to audit 
under this subsection, the Secretary shall prioritize 
audits for institutions that meet 1 or more of the 
following criteria: 
‘‘(A) Institutions that are in the top 1 per-
cent when the endowments of all institutions 
are ranked from largest to smallest. 
‘‘(B) Institutions with a previous history of 
receiving a substantial gift from, or entering 
into a substantial contract with, a foreign 
source. 
‘‘(C) Institutions that have previously been 
noncompliant with the requirements of this sec-
tion. 
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‘‘(D) Institutions that publicly report re-
ceiving contributions from a foreign entity of 
concern (as defined in section 10612(a) of the 
Research and Development, Competition, and 
Innovation Act (42 U.S.C. 19221(a))). 
‘‘(E) Institutions that have a formal agree-
ment, including a memorandum of under-
standing, with a Federal agency. 
‘‘(3) CONTENTS OF AUDIT.—As part of each 
audit conducted under this subsection, the Secretary 
shall determine— 
‘‘(A) if the institution was in compliance 
with requirements of this section for the 2 re-
porting years prior to the year in which the 
audit is conducted; and 
‘‘(B) in the case of noncompliance, the 
gifts from, or contracts with, foreign sources 
whose amounts the institution under reported 
or over reported in the prior 2 reporting years, 
along with the following information for each of 
these gifts or contracts: 
‘‘(i) The amount under reported or 
over reported. 
‘‘(ii) The foreign source. 
‘‘(iii) The country of origin. 
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‘‘(iv) The receipt date or contract 
start and end dates. 
‘‘(4) REPORT.—Not later than 30 days after 
the date on which the audit under this subsection is 
completed, the Secretary shall— 
‘‘(A) submit to Congress a report on the 
results of the audit; and 
‘‘(B) make the report described in sub-
paragraph (A)— 
‘‘(i) available to the Speaker of the 
House, the majority and minority leaders 
of the House of Representatives, the ma-
jority and minority leaders of the Senate, 
the Chair and Ranking Member of the 
committee and each subcommittee of juris-
diction in the House of Representatives 
and the Senate, and any other Member of 
Congress who requests the report; and 
‘‘(ii) publicly available on the Depart-
ment of Education website.’’. 
SEC. 2. EXCISE TAXES ON CERTAIN CONTRIBUTIONS BY 
FOREIGN ENTITIES. 
(a) IN GENERAL.—Subchapter H of chapter 42 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new sections: 
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‘‘SEC. 4969. EXCISE TAX ON CONTRIBUTIONS TO COLLEGES 
AND UNIVERSITIES BY FOREIGN COUNTRIES 
OF CONCERN. 
‘‘(a) TAX IMPOSED.—There is hereby imposed on 
each applicable institution for the taxable year a tax equal 
to 300 percent of the income of such institution received 
from any foreign country of concern during the taxable 
year. 
‘‘(b) APPLICABLE INSTITUTION.—For purposes of 
this section, the term ‘applicable institution’ means an eli-
gible educational institution (as defined in section 
25A(f)(2))— 
‘‘(1) which had at least 500 tuition-paying stu-
dents during the preceding taxable year, and 
‘‘(2) more than 50 percent of the tuition-paying 
students of which are located in the United States, 
determined according to the rules of section 4968(b)(2). 
‘‘(c) FOREIGN COUNTRY OF CONCERN.—For pur-
poses of this section, the term ‘foreign country of concern’ 
has the meaning given such term by section 10612(a) of 
the Research and Development, Competition, and Innova-
tion Act. 
‘‘(d) RELATED ORGANIZATIONS.—Rules similar to 
the rules of section 4968(d) shall apply in determining in-
come of an applicable institution for purposes of this sec-
tion. 
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‘‘SEC. 4970. EXCISE TAX ON FAILURE TO REPORT CON-
TRIBUTIONS BY FOREIGN ENTITIES. 
‘‘(a) TAX IMPOSED.—There is hereby imposed on 
each institution for the taxable year a tax equal to 110 
percent of the unreported foreign funding received by such 
institution during the taxable year. 
‘‘(b) UNREPORTED FOREIGN FUNDING.—For pur-
poses of this section, the term ‘unreported foreign funding’ 
means an amount equal to the value of any gift or con-
tract, or any amount received pursuant to a change in 
ownership or control, required to be reported under section 
117 of the Higher Education Act of 1965 which is deter-
mined not to have been so reported by an audit under sub-
section (g) of such section. 
‘‘(c) TIMING OF TAX.—The tax imposed by sub-
section (a) shall be due not later than 180 days after the 
institution is notified of the results of the audit under sec-
tion 117(g) of the Higher Education Act of 1965. 
‘‘(d) COORDINATION WITH SECTION 4969.—In the 
case of any unreported foreign funding which is received 
from a foreign country of concern (as defined in section 
4969(c)), the tax imposed by subsection (a) shall be in 
addition to any tax imposed by section 4969 on such fund-
ing. 
‘‘(e) INSTITUTION; OTHER TERMS.—For purposes of 
this section, the term ‘institution’, and any other term 
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used in this section which is used in section 117 of the 
Higher Education Act of 1965, has the same meaning as 
when used in such section.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) The table of sections for subchapter H of 
chapter 42 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
items: 
‘‘Sec. 4969. Excise tax on contributions to colleges and universities by foreign 
countries of concern. 
‘‘Sec. 4970. Excise tax on failure to report contributions by foreign entities.’’. 
(2) The heading of subchapter H of chapter 42 
of such Code (and the item relating to such sub-
chapter in the table of subchapters for such chapter) 
are each amended by striking ‘‘Tax Based on In-
vestment Income of’’ and inserting ‘‘Taxes 
on’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date which is 60 days after the date of the enactment 
of this Act. 
Æ 
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