‘‘(iii) the date on which the foreign 
source assumed ownership or control; and 
‘‘(iv) any changes in the programs or 
organizational structure of the institution 
resulting from the change in ownership or 
control. 
‘‘(4) RESTRICTED AND CONDITIONAL GIFTS.— 
‘‘(A) DISCLOSURE REQUIRED.—Except as 
provided in subsection (b), whenever any insti-
tution receives a restricted or conditional gift 
from or enters into a restricted or conditional 
contract with a foreign source (regardless of the 
value of such gift or contract) the institution 
shall file a disclosure report with the Office for 
Foreign Gifts and Contracts Oversight on Jan-
uary 31 or July 31, whichever is sooner. 
‘‘(B) CONTENTS
OF
DISCLOSURE.—Each 
report under subparagraph (A) shall include the 
following: 
‘‘(i) NONGOVERNMENTAL SOURCES.— 
For gifts received from or contracts en-
tered into with a foreign source other than 
a foreign government, the amount, the 
date, and a description of such conditions 
or restrictions. The report shall also dis-
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close the country of citizenship, or if un-
known, the principal residence for a for-
eign source who is a natural person, and 
the country of incorporation, or if un-
known, the principal place of business for 
a foreign source which is a legal entity. 
‘‘(ii) GOVERNMENTAL SOURCES.—For 
gifts received from or contracts entered 
into with a foreign government, the 
amount, the date, a description of such 
conditions or restrictions, and the name of 
the foreign government. 
‘‘(b) LIMITATION
ON ACCEPTANCE
OF CERTAIN 
GIFTS AND CONTRACTS.— 
‘‘(1) APPROVAL
REQUIRED.—An institution 
may not accept a gift or enter into a contract de-
scribed in paragraph (3) unless— 
‘‘(A) the institution files a disclosure re-
port with the Office for Foreign Gifts and Con-
tracts Oversight that includes— 
‘‘(i) the dollar amount of the intended 
gift or contract; 
‘‘(ii) all terms and conditions of the 
intended gift or contract; and 
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‘‘(iii) the legal or formal name of the 
foreign source or associate of a foreign ad-
versary that intends to make the gift or 
enter into the contract and— 
‘‘(I) in the case of a foreign 
source or associate of a foreign adver-
sary who is a natural person, that 
person’s country of citizenship, or if 
unknown, 
that 
person’s 
principal 
country of residence; or 
‘‘(II) in the case of a foreign 
source or associate of a foreign adver-
sary which is a legal entity, the enti-
ty’s principal place of business, if un-
known, the entity’s country of incor-
poration; 
‘‘(B) an authorized official of the institu-
tion certifies to the Secretary that acceptance of 
the gift or contract— 
‘‘(i) will not pose risks to the national 
security interests of the United States; 
‘‘(ii) will not compromise the competi-
tiveness of the United States in the field to 
which the gift or contract pertains; and 
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‘‘(iii) will not result in any restrictions 
on academic freedom or discourse, includ-
ing by influencing the hiring of faculty, the 
acceptance of students, or the content of 
instruction in a manner favorable to the 
interests of the foreign source or associate 
of a foreign adversary that intends to 
make the gift or enter into the contract; 
and 
‘‘(C) the Secretary, acting through the Of-
fice for Foreign Gifts and Contracts Over-
sight— 
‘‘(i) thoroughly reviews and verifies 
the information submitted by the institu-
tion under subparagraphs (A) and (B); 
‘‘(ii) makes a determination, in writ-
ing, to approve the gift or contract; and 
‘‘(iii) transmits such approval to the 
institution. 
‘‘(2) NOTICE
OF
DISAPPROVAL.—If the Sec-
retary disapproves a gift or contract under para-
graph (1)(C) the Secretary shall transmit notice of 
such disapproval to the institution. 
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‘‘(3) GIFTS AND CONTRACTS DESCRIBED.—The 
gifts and contracts described in this paragraph are 
the following: 
‘‘(A) Any gift from or contract with an as-
sociate of a foreign adversary the value of 
which is $10,000 or more, considered alone or 
in combination with all other gifts from or con-
tracts with such person or entity. 
‘‘(B) Any gift from or contract with a for-
eign source (regardless of the value of such gift 
or contract) that relates to the research, devel-
opment, or production of critical technologies 
and, in consideration for which, a foreign 
source would be granted access to material non-
public technical information held by an institu-
tion. 
‘‘(4) CRITERIA FOR HEIGHTENED SCRUTINY.— 
In making a determination whether to approve or 
disapprove a gift or contract under paragraph 
(1)(C), the Secretary shall apply a heightened stand-
ard of scrutiny to any gift or contract that relates 
to one or more of the following: 
‘‘(A) Critical technologies. 
‘‘(B) Biotechnology. 
‘‘(C) Pharmaceuticals. 
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‘‘(D) Artificial intelligence. 
‘‘(E) Quantum computing. 
‘‘(F) Machine learning. 
‘‘(G) Technologies with military applica-
tions. 
‘‘(H) Any other area of science, tech-
nology, engineering, or mathematics. 
‘‘(d) AVAILABILITY OF DOCUMENTATION.—As part 
of each disclosure required under this section, an institu-
tion shall provide to the Secretary an assurance that the 
institution will, upon request of the Secretary, produce 
true copies of any documentation relating to any gift, con-
tract, or change in ownership or control subject to such 
disclosure requirements. 
‘‘(e) TRANSLATIONS.—Each report required to be 
submitted under this section and any documentation made 
available under subsection (d) shall be provided in the 
English language. If any part of such report or docu-
mentation requires translation from another language into 
English for purposes of meeting the requirements of this 
subsection, the institution shall ensure that the translation 
is performed by a third party unaffiliated with institution 
or the foreign source concerned. 
‘‘(f) RELATION
TO OTHER REPORTING REQUIRE-
MENTS.— 
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the Secretary shall make the full text of the report 
publicly available on the database established under 
paragraph (2). 
‘‘(2) DATABASE.—The Secretary of Education 
shall establish a database of the reports submitted 
to the Secretary under this section. The database 
shall be hosted on a publicly accessible website of 
the Department of Education and the reports posted 
to the database shall be made available in an elec-
tronic format that— 
‘‘(A) includes the full text of each report 
and any supporting documentation relating to 
the report; 
‘‘(B) is downloadable, searchable, and sort-
able; and 
‘‘(C) allows a user of the database to com-
pare institutions based on the types and 
amounts of foreign support received by such in-
stitutions. 
‘‘(h) MODIFICATIONS.—The Secretary shall establish 
a process to enable institutions to revise and update pre-
viously filed disclosure reports under this section to ensure 
accuracy, compliance, and ability to cure. 
‘‘(i) SANCTIONS FOR NONCOMPLIANCE.— 
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‘‘(1) IN
GENERAL.—As a sanction for non-
compliance with the requirements of this section, the 
Secretary of Education shall impose a fine on an in-
stitution that, in any year, knowingly or willfully vio-
lates this section, that is— 
‘‘(A) in an amount equal to at least 10 
percent of the value of the gift or contract but 
not more than the total amount of the gift or 
contract with the foreign source in the case 
of— 
‘‘(i) a failure to disclose a gift or con-
tract with a foreign source as required 
under this section; or 
‘‘(ii) a failure to comply with sub-
section (d) or (e) with respect to such gift 
or contract; 
‘‘(B) in an amount that is not more than 
25 percent of the total amount of funding re-
ceived by the institution under this Act, as de-
scribed in paragraph (3), for the year in which 
the violation occurred in the case of— 
‘‘(i) a failure to disclose ownership or 
control by a foreign source in violation of 
the requirements of subsection (a)(3); or 
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‘‘(ii) a failure to comply with sub-
section (d) or (e) with respect to such dis-
closure; or 
‘‘(C) in the case of a failure to comply with 
subsection (b)— 
‘‘(i) in an amount equal to the value 
of the gift or contract; or 
‘‘(ii) not less than $50,000 if the gift 
or contract is of undetermined monetary 
value. 
‘‘(2) REPEATED FAILURES.— 
‘‘(A) 
KNOWING
AND
WILLFUL
FAIL-
URES.—In addition to a fine for a violation in 
any year in accordance with paragraph (1), the 
Secretary of Education shall impose a fine on 
an institution that knowingly and willfully fails 
in two consecutive years to comply with the re-
quirements of this section, that is— 
‘‘(i) in an amount that is not less 
than $100,000 but not more than twice 
the amount of the gift or contract with the 
foreign source, in the case of— 
‘‘(I) a failure to disclose a gift or 
contract with a foreign source as re-
quired under this section; or 
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‘‘(II) a failure to comply with 
subsection (d) or (e) with respect to 
such gift or contract; or 
‘‘(ii) in an amount that is not more 
than 25 percent of the total amount of 
funding received by the institution under 
this Act for the year in which the violation 
occurred in the case of— 
‘‘(I) a failure to disclose owner-
ship or control by a foreign source in 
violation of the requirements of sub-
section (a)(3); or 
‘‘(II) a failure to comply with 
subsection (d) or (e) with respect to 
such disclosure. 
‘‘(B) SANCTION FOR REPEATED VIOLATION 
OF
GIFT
AND
CONTRACT
ACCEPTANCE 
RULES.—If an institution knowingly and will-
fully violates a provision of subsection (b) more 
than once in a period of two consecutive years, 
as determined by the Secretary, the Secretary 
shall declare the institution to be ineligible to 
receive funds and participate in programs under 
this Act for a period of up to five years. 
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‘‘(3) CALCULATION
OF
PENALTY.—For pur-
poses of paragraphs (1)(B) and (2)(A)(ii), the total 
amount of funding received by an institution under 
this Act does not include any amounts received by 
the institution from or on behalf of an individual 
student that are derived from a grant or student 
loan made under this Act. 
‘‘(j) AUTHORITY TO TERMINATE OR MODIFY TRANS-
ACTIONS.—As a condition of receiving a gift from or enter-
ing into a contract with a foreign source or an associate 
of a foreign adversary, an institution and any other party 
to such gift or contract shall agree that the Office for For-
eign Gifts and Contracts Oversight shall have the author-
ity— 
‘‘(1) to review such gift or contract at any time; 
and 
‘‘(2) if the Office determines that such gift or 
contract poses a risk to the national security inter-
ests of the United States, the Office may— 
‘‘(A) terminate or modify such gift or con-
tract; or 
‘‘(B) require the institution to pay to the 
Secretary an amount equal to the value of such 
gift or contract. 
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‘‘(k) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to require the disclosure or ap-
proval by the Department of Education of a tuition agree-
ment or other agreement entered into between an institu-
tion and an individual student in the regular course of 
the student’s enrollment at the institution. 
‘‘(l) DEFINITIONS.—In this section: 
‘‘(1) The term ‘associate of a foreign adversary’ 
means— 
‘‘(A) a natural person (regardless of the 
person’s citizenship, nationality, or principal 
place of residence) who derives a substantial 
amount of income from business activities with 
a foreign adversary; and 
‘‘(B) a legal entity (regardless of entity’s 
country of incorporation or principal place of 
business) that derives a substantial amount of 
revenue or income from business activities with 
a foreign adversary. 
‘‘(2) The term ‘contract’ means any legally 
binding agreement, including any agreement for the 
acquisition by purchase, lease, or barter of property 
or services by the foreign source, for the direct ben-
efit or use of either of the parties. 
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‘‘(3) The term ‘critical technologies’ has the 
meaning given that term section 801.204 of title 31, 
Code of Federal Regulations (or any successor to 
such regulation). 
‘‘(4) The term ‘foreign adversary’ means— 
‘‘(A) Cuba; 
‘‘(B) the Democratic People’s Republic of 
North Korea; 
‘‘(C) the Islamic Republic of Iran; 
‘‘(D) the People’s Republic of China (in-
cluding the Hong Kong Special Administrative 
Region and the Macau Special Administrative 
Region); 
‘‘(E) the Russian Federation; and 
‘‘(F) any other nation designated as a for-
eign adversary by the Department of Commerce 
for purposes of the implementation of Executive 
Order 13873 (84 Fed. Reg. 22689), titled ‘Se-
curing the Information and Communications 
Technology and Services Supply Chain’, and 
dated May 15, 2019. 
‘‘(5) The term ‘foreign source’ means— 
‘‘(A) a foreign government, including an 
agency of a foreign government; 
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‘‘(B) a legal entity, governmental or other-
wise, created solely under the laws of a foreign 
state or states; 
‘‘(C) an individual who is not a citizen or 
a national of the United States or a trust terri-
tory or protectorate thereof; 
‘‘(D) an agent, including a subsidiary or 
affiliate of a foreign legal entity, acting on be-
half of a foreign source; or 
‘‘(E) any individual or legal entity that, in 
the period of one year preceding the date on 
which the individual or entity made a gift to or 
entered into a contract with an institution— 
‘‘(i) received a total of $100,000 or 
more in funds or subsidies from a foreign 
government; or 
‘‘(ii) generated at least 40 percent of 
the individual or entity’s income or revenue 
in a foreign country and the principal 
place of residence or business of such indi-
vidual or entity is in that foreign country; 
‘‘(6) the term ‘gift’ means any gift of money, 
property, or services; 
‘‘(7) the term ‘institution’ means— 
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‘‘(A) any institution, public or private, or, 
if a multicampus institution, any single campus 
of such institution, in any State, that— 
‘‘(i) is legally authorized within such 
State to provide a program of education 
beyond secondary school; 
‘‘(ii) provides a program for which the 
institution awards a bachelor’s degree (or 
provides not less than a 2-year program 
which is acceptable for full credit toward 
such a degree) or more advanced degrees; 
and 
‘‘(iii) is accredited by a nationally rec-
ognized accrediting agency or association 
and to which institution Federal financial 
assistance is extended (directly or indi-
rectly through another entity or person), or 
which institution receives support from the 
extension of Federal financial assistance to 
any of the institution’s subunits; and 
‘‘(B) any organization associated with or 
otherwise connected to an institution described 
in subparagraph (A), including a university 
foundation (as described in section 509(a)(3) of 
the Internal Revenue Code of 1986) or a non-
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profit organization (as described in section 
501(c)(3) of the Internal Revenue Code of 
1986); 
‘‘(8) the term ‘restricted or conditional gift or 
contract’ means any endowment, gift, grant, con-
tract, award, present, or property of any kind which 
includes provisions regarding— 
‘‘(A) the employment, assignment, or ter-
mination of faculty; 
‘‘(B) the establishment of departments, 
centers, research or lecture programs, or new 
faculty positions; 
‘‘(C) the selection or admission of stu-
dents; or 
‘‘(D) the award of grants, loans, scholar-
ships, fellowships, or other forms of financial 
aid restricted to students of a specified country, 
religion, sex, ethnic origin, or political opin-
ion.’’. 
(b) EFFECTIVE DATE
AND APPLICABILITY.—The 
amendments made by subsection (a) shall take effect 90 
days after the date of enactment of this Act and shall 
apply with respect to gifts, contracts, and changes in the 
ownership or control of an institution occurring on or after 
such effective date. 
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(c) REGULATIONS.—Not later than the effective date 
specified in subsection (b), the President shall promulgate 
regulations implementing section 117 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1011f), as amended by sub-
section (a). 
SEC. 2. OFFICE FOR FOREIGN GIFTS AND CONTRACTS 
OVERSIGHT. 
(a) ESTABLISHMENT.—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. OFFICE FOR FOREIGN GIFTS AND CONTRACTS 
OVERSIGHT. 
‘‘(a) ESTABLISHMENT.—There is established within 
the Office of the Secretary of Education an Office for For-
eign Gifts and Contracts Oversight (referred to in this sec-
tion as the ‘Office’). 
‘‘(b) HEAD OF OFFICE.—The head of the Office shall 
be the designee of the Secretary. 
‘‘(c) RESPONSIBILITIES.—The responsibilities of the 
Office shall be— 
‘‘(1) to monitor the compliance of institutions 
with section 117; 
‘‘(2) to enforce the requirements of such section 
with respect to such institutions; 
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