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). 
‘‘(b) INSTITUTIONS.—An institution shall be subject 
to the requirements of this section if such institution— 
‘‘(1) is an eligible institution for the purposes 
of any program authorized under title IV; and 
‘‘(2)(A) 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 
‘‘(B) receives funds under title VI. 
‘‘(c) ENFORCEMENT.— 
‘‘(1) INVESTIGATION.—The Secretary (acting 
through the General Counsel of the Department) 
may conduct investigations of possible violations of 
this section by institutions. 
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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 such an investigation, a civil action 
may be brought by the Attorney General, at the re-
quest 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 re-
quirement 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 the requirement of this 
section, including all associated costs of inves-
tigation 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 knowingly 
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or willfully fails to comply with a requirement of this 
section 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 with respect to a calendar year, and that 
has not previously knowingly or willfully failed 
to comply with such a requirement, the Sec-
retary shall impose a fine on the institution of 
not less than $250,000, but not more than the 
total amount of gifts or contracts reported by 
such institution in the database required under 
subsection (a)(2). 
‘‘(B) SUBSEQUENT
VIOLATIONS.—In the 
case of an institution that has been fined pur-
suant to clause (i) with respect to a calendar 
year, and that knowingly or willfully fails to 
comply with a requirement of this section with 
respect to any additional calendar year, the 
Secretary shall impose a fine on the institution 
with respect to any such additional calendar 
year in an amount that is not less than 
$500,000, but not more than twice the total 
amount of gifts or contracts reported by such 
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institution in the database required under sub-
section (a)(2). 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) CONTRACT.—the term ‘contract’— 
‘‘(A) means any— 
‘‘(i) agreement for the acquisition, by 
purchase, lease, or barter, of property or 
services by a foreign source for the direct 
benefit or use of any of the parties to the 
agreement; 
‘‘(ii) affiliation, agreement, or similar 
transaction with a foreign source based on 
the use or exchange of the name, likeness, 
time, services, or resources of faculty, pro-
fessional staff, or other staff engaged in 
research and development (as determined 
by the institution and measured by the 
Higher Education Research and Develop-
ment Survey of the National Center for 
Science and Engineering Statistics) em-
ployed at an institution described in sub-
section (b); or 
‘‘(iii) purchase, lease, or barter of 
property or services from a foreign source 
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that is a foreign country of concern or a 
foreign entity of concern; and 
‘‘(B) does not include any fair-market, 
arms-length agreement made by faculty, profes-
sional staff, and other staff engaged in research 
and development (as determined by the institu-
tion and measured by the Higher Education 
Research and Development Survey of the Na-
tional Center for Science and Engineering Sta-
tistics) for the acquisition, by purchase, lease, 
or barter of property or services from a foreign 
source other than such a foreign source that is 
a foreign country of concern or a foreign entity 
of concern; and 
‘‘(2) FOREIGN
COUNTRY
OF
CONCERN.—The 
term ‘foreign country of concern’ includes the fol-
lowing: 
‘‘(A) A country that is a covered nation (as 
defined in section 4872(d) of title 10, United 
States Code). 
‘‘(B) Any country that the Secretary, in 
consultation with the Secretary of Defense, the 
Secretary of State, and the Director of National 
Intelligence, determines to be engaged in con-
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duct 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 De-
fense Authorization Act for Fiscal Year 2019 (10 
U.S.C. 22 4001 note; Public Law 115–232). 
‘‘(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 other-
wise, created under the laws of a foreign state 
or states; 
‘‘(C) a natural person who is not a citizen 
or a national of the United States or a trust 
territory or protectorate thereof; and 
‘‘(D) an agent, including— 
‘‘(i) a subsidiary or affiliate of a for-
eign legal entity, acting on behalf of a for-
eign source; and 
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‘‘(ii) an entity or organization that op-
erates primarily for the benefit of, or 
under the auspices of, a foreign legal enti-
ty, including a foundation or a related en-
tity (such as any educational, cultural, or 
language entity). 
‘‘(5) GIFT.—The term ‘gift’— 
‘‘(A) means any gift of money, property, 
resources, staff, or services; and 
‘‘(B) does not include— 
‘‘(i) any payment of one or more ele-
ments of a student’s cost of attendance (as 
such term is defined in section 472) to an 
institution by, or scholarship from, a for-
eign 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 re-
stricted or conditional contract with such 
foreign source; or 
‘‘(ii) assignment or license of reg-
istered industrial and intellectual property 
rights, such as patents, utility models, 
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trademarks, or copyrights, or technical as-
sistance, that are not identified as being 
associated with a national security risk or 
concern by the Federal Research Security 
Council as described under section 7902 of 
title 31, United States Code; or 
‘‘(iii) decorations (as such term is de-
fined in section 7342(a) of title 5, United 
States Code). 
‘‘(6) 
INSTITUTION.—The 
term 
‘institution’ 
means an institution of higher education (as such 
term is defined in section 102, other than an institu-
tion described in subsection (a)(1)(c) of such sec-
tion). 
‘‘(7) PROFESSIONAL STAFF.—the term ‘profes-
sional staff’ means professional employees, as de-
fined in section 3 of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 203).’’. 
(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 re-
quirements of section 117A. 
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‘‘(B) An institution that, for 3 consecutive in-
stitutional fiscal years, violates any requirement of 
section 117A shall— 
‘‘(i) be ineligible to participate in the pro-
grams authorized by this title for a period of 
not less than 2 institutional fiscal years; and 
‘‘(ii) in order to regain eligibility to partici-
pate in such programs, demonstrate compliance 
with all requirements of such section for not 
less than 2 institutional fiscal years after the 
institutional fiscal year in which such institu-
tion became ineligible.’’. 
Æ 
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