I 
117TH CONGRESS 
1ST SESSION H. R. 1777 
To address foreign threats to higher education in the United States. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 10, 2021 
Ms. STEFANIK (for herself, Mrs. HARTZLER, Mr. WALTZ, Mr. CRENSHAW, 
Mr. TURNER, Mr. STEUBE, Mr. GAETZ, and Mrs. STEEL) introduced the 
following bill; which was referred to the Committee on the Judiciary, and 
in addition to the Committee on Education and Labor, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To address foreign threats to higher education in the United 
States. 
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 ‘‘Stop Higher Education 
Espionage and Theft Act of 2021’’. 
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SEC. 
2. 
DESIGNATION 
OF 
FOREIGN 
INTELLIGENCE 
THREATS TO HIGHER EDUCATION. 
(a) IN GENERAL.—Chapter 33 of title 28, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 540D. Designation of foreign intelligence threats to 
higher education 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘classified information’ has the 
meaning given that term in section 1(a) of the Clas-
sified Information Procedures Act (18 U.S.C. App.); 
‘‘(2) the term ‘Director’ means the Director of 
the Federal Bureau of Investigation, acting in con-
sultation with the Attorney General, the Secretary of 
Education, and the Director of National Intelligence; 
‘‘(3) the term ‘foreign actor’ means— 
‘‘(A) a foreign government or its auxiliary 
territories, or any component thereof, whether 
or not recognized by the United States; 
‘‘(B) a foreign-based political organization, 
not substantially composed of United States 
persons; 
‘‘(C) a faction of a foreign nation or na-
tions, not substantially composed of United 
States persons; 
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‘‘(D) an entity that is openly acknowledged 
by a foreign government or governments to be 
directed and controlled by such foreign govern-
ment or governments; 
‘‘(E) any partnership, association, corpora-
tion, organization, or other combination of per-
sons who acts as an agent, representative, em-
ployee, or servant of, or whose activities are di-
rectly or indirectly supervised, directed, con-
trolled, financed, or subsidized in whole or in 
major part by a government, organization, fac-
tion, or entity described in subparagraph (A) 
(B), (C), or (D); or 
‘‘(F) any individual who acts as an agent, 
representative, employee, or servant of, or 
whose activities are directly or indirectly super-
vised, directed, controlled, financed, or sub-
sidized in whole or in major part by a govern-
ment, organization, faction, or entity described 
in subparagraph (A), (B), (C), or (D), unless 
such individual is a citizen of and domiciled 
within the United States; 
‘‘(4) the term ‘institution’ means any institu-
tion of higher education, as defined under section 
101 of the Higher Education Act (20 U.S.C. 1001); 
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‘‘(5) the term ‘national security’ means the na-
tional defense, foreign relations, or economic inter-
ests of the United States; 
‘‘(6) the term ‘relevant committees of Congress’ 
means— 
‘‘(A) the Committee on the Judiciary, the 
Select Committee on Intelligence, the Com-
mittee on Homeland Security and Government 
Affairs, and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate; and 
‘‘(B) the Committee on the Judiciary, the 
Permanent Select Committee on Intelligence, 
the Committee on Homeland Security, and the 
Committee on Education and Labor of the 
House of Representatives; and 
‘‘(7) the term ‘United States person’ has the 
meaning given that term in section 101 of the For-
eign Intelligence Surveillance Act of 1978 (50 
U.S.C. 1801). 
‘‘(b) DESIGNATION.— 
‘‘(1) IN
GENERAL.—The Director shall des-
ignate a foreign actor as a foreign intelligence threat 
to higher education, in accordance with this sub-
section, if the Director finds that the foreign actor 
has committed, attempted to commit, or conspired to 
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commit, in connection with an institution, one or 
more of the following: 
‘‘(A) Smuggling goods from the United 
States, in violation of section 554 of title 18. 
‘‘(B) Espionage, in violation of sections 
791 through 799 of title 18. 
‘‘(C) Kidnapping, in violation of section 
1201 of title 18. 
‘‘(D) Fraud or misuse of visas, permits, or 
other documents, in violation of section 1546 of 
title 18. 
‘‘(E) Aggravated identity theft, in violation 
of section 1028A of title 18. 
‘‘(F) Fraud or related activity in connec-
tion with access devices, in violation of section 
1029 of title 18. 
‘‘(G) Fraud or related activity in connec-
tion with computers, in violation of section 
1030 of title 18. 
‘‘(H) Economic espionage, in violation of 
section 1831 of title 18. 
‘‘(I) Theft of trade secrets, in violation of 
section 1832 of title 18. 
‘‘(J) Terrorism, in violation of sections 
2331 through 2339D of title 18. 
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‘‘(K) Interception or disclosure of wire, 
oral, or electronic communications, in violation 
of section 2511 of title 18. 
‘‘(L) A violation of any control on the im-
port or export of defense articles or defense 
services imposed under section 38 of the Arms 
Export Control Act (22 U.S.C. 2778). 
‘‘(M) A violation of any control on the ex-
port, reexport, and in-country transfer of an 
item imposed under section 1753 of the Export 
Control Reform Act of 2018 (50 U.S.C. 4812). 
‘‘(N) An unlawful act described in section 
206(a) of the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1705(a)). 
‘‘(2) PROCEDURE.— 
‘‘(A) NOTICE BEFORE DESIGNATION.— 
‘‘(i) TO CONGRESSIONAL LEADERS.— 
Not later than 7 days before making a des-
ignation under paragraph (1), the Director 
shall submit to the Speaker and minority 
leader of the House of Representatives, the 
President pro tempore, majority leader, 
and minority leader of the Senate, and the 
members of the relevant committees of 
Congress— 
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‘‘(I) written notice of the intent 
of the Director to designate a foreign 
actor under paragraph (1); and 
‘‘(II) the findings made under 
paragraph (1) with respect to foreign 
actor and the factual basis therefor. 
‘‘(ii) TO THE ATTORNEY GENERAL.— 
Not later than 7 days before making a des-
ignation under paragraph (1), the Director 
shall submit to the Attorney General, for 
the Attorney General to determine whether 
further investigation or prosecution is war-
ranted— 
‘‘(I) written notice of the intent 
of the Director to designate a foreign 
actor under paragraph (1); and 
‘‘(II) the findings made under 
paragraph (1) with respect to the for-
eign actor and the factual basis there-
for. 
‘‘(iii) PROTECTION OF CLASSIFIED IN-
FORMATION.—The notice and findings sub-
mitted under clauses (i) and (ii) may be in 
classified form. 
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‘‘(B) PUBLICATION
IN
FEDERAL
REG-
ISTER.—If the Director makes a designation 
under paragraph (1), the Director shall publish 
the designation in the Federal Register on the 
date of the designation. 
‘‘(C) EFFECT OF DESIGNATION.—For pur-
poses of section 117 of the Higher Education 
Act of 1965 (20 U.S.C. 1011f), a designation 
under paragraph (1) shall take effect upon pub-
lication under subparagraph (B) of this para-
graph. 
‘‘(D) EFFECT OF DESIGNATION ON LAW-
FUL STATUS.— 
‘‘(i) REVOCATION OF NONIMMIGRANT 
VISA.—The Secretary of State shall revoke 
the nonimmigrant visa issued to any for-
eign actor present in the United States im-
mediately after such foreign actor has been 
designated under paragraph (1). 
‘‘(ii) REMOVAL.—The Secretary of 
Homeland Security shall initiate removal 
proceedings against any foreign actor de-
scribed in clause (i) and expeditiously re-
move such foreign actor from the United 
States. 
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‘‘(iii) 
INELIGIBILITY.—Any 
foreign 
actor who has been designated under para-
graph (1) shall be inadmissible to the 
United States and ineligible to receive a 
United States visa or be admitted to the 
United States. 
‘‘(iv) APPEAL.—If a foreign actor ap-
peals a designation under paragraph (1), 
the consequences described in clauses (i) 
through (iii) shall be stayed until such ap-
peal has been fully adjudicated. 
‘‘(3) RECORD.— 
‘‘(A) IN GENERAL.—In making a designa-
tion under paragraph (1), the Director shall 
create an administrative record. 
‘‘(B) CLASSIFIED INFORMATION.—The Di-
rector may consider classified information in 
making a designation under paragraph (1). 
Classified information shall not be subject to 
disclosure for such time as it remains classified, 
except that such information may be disclosed 
to a court ex parte and in camera for purposes 
of judicial review under subsection (d). 
‘‘(4) PERIOD OF DESIGNATION.— 
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‘‘(A) IN GENERAL.—A designation under 
paragraph (1) shall be effective for all purposes 
until revoked under paragraph (5) or (6) or set 
aside under subsection (d). 
‘‘(B) REVIEW OF DESIGNATION UPON PE-
TITION.— 
‘‘(i) IN GENERAL.—The Director shall 
review the designation of a foreign actor as 
a foreign intelligence threat to higher edu-
cation under the procedures set forth in 
clauses (iii) and (iv) if the designated for-
eign actor files a petition for revocation 
within the petition period described in 
clause (ii). 
‘‘(ii) PETITION
PERIOD.—For pur-
poses of clause (i)— 
‘‘(I) if the designated foreign 
actor has not previously filed a peti-
tion for revocation under this sub-
paragraph, the petition period begins 
2 years after the date on which the 
designation was made; or 
‘‘(II) if the designated foreign 
actor has previously filed a petition 
for revocation under this subpara-
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graph, the petition period begins 2 
years after the date of the determina-
tion made under clause (iv) with re-
spect to that petition. 
‘‘(iii) 
PROCEDURES.—Any 
foreign 
actor designated as a foreign intelligence 
threat to higher education that submits a 
petition for revocation under this subpara-
graph shall provide evidence in the petition 
that the relevant circumstances described 
in paragraph (1) are sufficiently different 
from the circumstances that were the basis 
for the designation such that a revocation 
with respect to the foreign actor is war-
ranted. 
‘‘(iv) DETERMINATION.— 
‘‘(I) IN
GENERAL.—Not later 
than 180 days after receiving a peti-
tion for revocation submitted under 
this subparagraph, the Director shall 
make a determination as to such rev-
ocation. 
‘‘(II) 
CLASSIFIED
INFORMA-
TION.—The Director may consider 
classified information in making a de-
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termination in response to a petition 
for revocation. Classified information 
shall not be subject to disclosure for 
such time as it remains classified, ex-
cept that such information may be 
disclosed to a court ex parte and in 
camera for purposes of judicial review 
under subsection (d). 
‘‘(III) PUBLICATION OF DETER-
MINATION.—A determination made by 
the Director under this clause shall be 
published in the Federal Register. 
‘‘(IV) PROCEDURES.—Any rev-
ocation of a designation by the Direc-
tor shall be made in accordance with 
paragraph (6). 
‘‘(C) OTHER REVIEW OF DESIGNATION.— 
‘‘(i) IN GENERAL.—If no review has 
taken place under subparagraph (B) dur-
ing any 5-year period, the Director shall 
review the designation of a foreign actor as 
a foreign intelligence threat to higher edu-
cation under paragraph (1) in order to de-
termine whether such designation should 
be revoked pursuant to paragraph (6). 
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‘‘(ii) PROCEDURES.—If a review does 
not take place pursuant to subparagraph 
(B) in response to a petition for revocation 
that is filed in accordance with that sub-
paragraph, the review shall be conducted 
pursuant to procedures established by the 
Director. The results of such review and 
the applicable procedures shall not be re-
viewable in any court. 
‘‘(iii) PUBLICATION OF RESULTS OF 
REVIEW.—The Director shall publish any 
determination made under this subpara-
graph in the Federal Register. 
‘‘(5) REVOCATION BY ACT OF CONGRESS.—Con-
gress, by an Act of Congress, may block or revoke 
a designation made under paragraph (1). 
‘‘(6) REVOCATION BASED ON CHANGE IN CIR-
CUMSTANCES.— 
‘‘(A) IN GENERAL.—The Director may re-
voke a designation made under paragraph (1) 
at any time, and shall revoke a designation 
upon completion of a review conducted pursu-
ant to subparagraphs (B) and (C) of paragraph 
(4) if the Director finds that— 
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‘‘(i) the circumstances that were the 
basis for the designation have changed in 
such a manner as to warrant revocation; or 
‘‘(ii) the national security of the 
United States warrants a revocation. 
‘‘(B) PROCEDURE.—The procedural re-
quirements of paragraphs (2) and (3) shall 
apply to a revocation under this paragraph. Any 
revocation shall take effect on the date specified 
in the revocation or upon publication in the 
Federal Register if no effective date is specified. 
‘‘(7) EFFECT OF REVOCATION.—The revocation 
of a designation under paragraph (5) or (6) shall 
not affect any action or proceeding based on conduct 
committed prior to the effective date of such revoca-
tion. 
‘‘(c) AMENDMENTS TO A DESIGNATION.— 
‘‘(1) IN GENERAL.—The Director may amend a 
designation under subsection (b)(1) if the Director 
finds that the foreign actor has changed its name, 
adopted a new alias, dissolved and then reconsti-
tuted itself under a different name or names, or 
merged with another foreign actor. 
‘‘(2) PROCEDURE.—Amendments made to a 
designation in accordance with paragraph (1) shall 
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be effective upon publication in the Federal Register. 
Subparagraphs (B) and (C) of subsection (b)(2) 
shall apply to an amended designation upon such 
publication. Paragraphs (2)(A)(i), (4), (5), (6), (7), 
and (8) of subsection (b) shall also apply to an 
amended designation. 
‘‘(3) ADMINISTRATIVE RECORD.—The adminis-
trative record shall be corrected to include the 
amendments as well as any additional relevant infor-
mation that supports those amendments. 
‘‘(4) CLASSIFIED INFORMATION.—The Director 
may consider classified information in amending a 
designation in accordance with this subsection. Clas-
sified information shall not be subject to disclosure 
for such time as it remains classified, except that 
such information may be disclosed to a court ex 
parte and in camera for purposes of judicial review 
under subsection (d). 
‘‘(d) JUDICIAL REVIEW OF DESIGNATION.— 
‘‘(1) IN
GENERAL.—Not later than 30 days 
after publication in the Federal Register of a des-
ignation, an amended designation, or a determina-
tion in response to a petition for revocation, the for-
eign actor designated as a foreign intelligence threat 
to higher education may seek judicial review in the 
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United States Court of Appeals for the District of 
Columbia Circuit. 
‘‘(2) BASIS
OF
REVIEW.—Review under this 
subsection shall be based solely upon the administra-
tive record, except that the Government may submit, 
for ex parte and in camera review, classified infor-
mation used in making the designation, amended 
designation, or determination in response to a peti-
tion for revocation, in a manner consistent with the 
Classified Information Procedures Act (18 U.S.C. 
App.). 
‘‘(3) SCOPE OF REVIEW.—The Court shall hold 
unlawful and set aside a designation, amended des-
ignation, or determination in response to a petition 
for revocation the court finds to be— 
‘‘(A) arbitrary, capricious, an abuse of dis-
cretion, or otherwise not in accordance with 
law; 
‘‘(B) contrary to constitutional right, 
power, privilege, or immunity; 
‘‘(C) in excess of statutory jurisdiction, au-
thority, or limitation, or short of statutory 
right; 
‘‘(D) lacking substantial support in the ad-
ministrative record taken as a whole or in clas-
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sified information submitted to the court under 
paragraph (2); or 
‘‘(E) not in accord with the procedures re-
quired by law. 
‘‘(4) JUDICIAL REVIEW INVOKED.—The pend-
ency of an action for judicial review of a designation, 
amended designation, or determination in response 
to a petition for revocation shall not affect the appli-
cation of this section, unless the court issues a final 
order setting aside the designation, amended des-
ignation, or determination in response to a petition 
for revocation. 
‘‘(e) IMPOSITION
OF SANCTIONS UNDER INTER-
NATIONAL EMERGENCY ECONOMIC POWERS ACT.— 
‘‘(1) IN GENERAL.—The President may, pursu-
ant to the International Emergency Economic Pow-
ers Act (50 U.S.C. 1701 et seq.)— 
‘‘(A) block and prohibit all transactions in 
all property and interests in property of a for-
eign actor designated as a foreign intelligence 
threat to higher education under subsection 
(b)(1), if such property and interests in prop-
erty are in the United States, come within the 
United States, or are or come within the pos-
session or control of a United States person; or 
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‘‘(B)(i) prohibit any institution, and all 
employees of an institution, from— 
‘‘(I) negotiating or entering into a 
contract with such a foreign actor; or 
‘‘(II) transferring information devel-
oped through research to such a foreign 
actor; and 
‘‘(ii) require any institution that has a con-
tract with such a foreign actor in effect as of 
the date on which the foreign actor is des-
ignated as a foreign intelligence threat to high-
er education under subsection (b)(1) to termi-
nate that contract. 
‘‘(2) TRANSFER
DEFINED.—For purposes of 
paragraph (1)(B)(i)(II), the term ‘transfer’, with re-
spect to information, means— 
‘‘(A) an actual shipment or transmission of 
the information out of the United States, in-
cluding the sending or taking of information 
out of the United States, in any manner; 
‘‘(B) releasing or otherwise transferring 
the information, including technical data, to a 
foreign person in the United States (commonly 
referred to as a ‘deemed export’); 
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‘‘(2) the term ‘foreign intelligence threat to 
higher education’ means any foreign source that is 
designated as a foreign intelligence threat to higher 
education in accordance with section 540D of title 
28, United States Code;’’; 
(C) in paragraph (4) (as so redesignated), 
by striking ‘‘or property’’ and inserting ‘‘, prop-
erty, services, or payment to the staff of an in-
stitution’’; 
(D) by striking paragraph (5) (as so redes-
ignated) and inserting the following: 
‘‘(5) the term ‘institution’ means an institution 
of higher education— 
‘‘(A) to which Federal financial assistance 
is extended (directly or indirectly through an-
other entity or person); or 
‘‘(B) that receives support from the exten-
sion of Federal financial assistance to any of 
the institution’s subunits’’; and 
(E) in paragraph (6)(B) (as so redesig-
nated), by inserting ‘‘institutes, instructional 
programs,’’ before ‘‘research or lecture’’. 
Æ 
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