I 
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 Representa-
tives 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’’. 
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SEC. 2. PROHIBITION ON CONTRACTS WITH CERTAIN FOR-
EIGN 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 amend-
ed 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 for-
eign 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 sub-
section (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 Sec-
retary, not later than 120 days before the 
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institution enters into such a contract, a 
request to waive the prohibition under sub-
section (a) with respect to such contract. 
‘‘(ii) CONTENTS
OF
WAIVER
RE-
QUEST.—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 for-
eign source involved with such con-
tract; and 
‘‘(II) a statement that— 
‘‘(aa) is certified by the 
compliance officer of the institu-
tion designated in accordance 
with subsection (e); and 
‘‘(bb) includes information 
that demonstrates that such con-
tract— 
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‘‘(AA) is for the benefit 
of the institution’s mission 
and students; and 
‘‘(BB) will promote the 
security, stability, and eco-
nomic 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 re-
quested by the Secretary). 
‘‘(ii) TERMINATION.—If the institu-
tion fails to submit a request under clause 
(i) or is not granted a renewal under such 
clause, such institution shall terminate 
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such contract on the last day of the origi-
nal 1-year waiver period. 
‘‘(3) WAIVER ISSUANCE.—The Secretary— 
‘‘(A) not later than 60 days before an in-
stitution enters into a contract pursuant to a 
waiver request under paragraph (2)(A), or be-
fore 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 deter-
mines, 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 Sec-
retary of Homeland Security, the Secretary of 
Energy, the Director of the National Science 
Foundation, and the Director of the National 
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Institutes of Health, that the contract for which 
the waiver is being requested— 
‘‘(i) is for the benefit of the institu-
tion’s mission and students; and 
‘‘(ii) will promote the security, sta-
bility, 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 jus-
tification 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 con-
cern or foreign entity of concern, such institution shall ter-
minate such contract not later than 60 days after the Sec-
retary notifies the institution of such designation. 
‘‘(d) CONTRACTS PRIOR TO DATE OF ENACTMENT.— 
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‘‘(1) IN GENERAL.—In the case of an institu-
tion 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 prac-
ticable, 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 begin-
ning 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 en-
tered into a contract described in paragraph (1), the 
term of which is longer than the waiver period de-
scribed in subparagraph (B) of such paragraph and 
the terms and conditions of which remain the same 
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as the contract submitted as part of the request re-
quired 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 (includ-
ing any rule or regulation promulgated under this 
section), shall request that the Attorney General 
bring a civil action in accordance with paragraph 
(2). 
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‘‘(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 sec-
tion) based on an investigation under such para-
graph, a civil action shall be brought by the Attor-
ney 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 com-
pliance 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 ob-
taining compliance with such requirement, in-
cluding all associated costs of investigation and 
enforcement; and 
‘‘(B) be subject to the applicable fines de-
scribed in paragraph (4). 
‘‘(4) FINES FOR VIOLATIONS.—The Secretary 
shall impose a fine on an institution that is com-
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pelled 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 sec-
tion for the first time, the Secretary shall im-
pose 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 pur-
suant to subparagraph (A), the Secretary shall 
impose a fine on the institution for each subse-
quent time the institution knowingly or willfully 
fails to comply with a requirement of this sec-
tion in an amount that is not less than 20 per-
cent of the total amount of Federal funds re-
ceived 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 pur-
suant to subparagraph (A) with respect to a 
calendar year, and that knowingly or willfully 
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fails to comply with a requirement of this sec-
tion with respect to any 2 additional calendar 
years, the Secretary shall prohibit the institu-
tion 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 in-
stitution’s name, likeness, time, services, or 
resources; and 
‘‘(iii) any agreement for the acquisi-
tion by purchase, lease, or barter, of prop-
erty 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 re-
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