Act of 1965 (20 U.S.C. 1011f) prior to the date of the 
enactment of this Act; and 
(2) any report, document, or other record gen-
erated by the Department of Education in the course 
of an investigation— 
(A) of an institution with respect to the 
compliance of such institution with such section; 
and 
(B) initiated prior to the date of the enact-
ment of this Act. 
SEC. 3. POLICY REGARDING CONFLICTS OF INTEREST 
FROM FOREIGN GIFTS AND CONTRACTS. 
The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.), as amended by section 2 of this Act, is further 
amended by inserting after section 117A the following: 
‘‘SEC. 117B. INSTITUTIONAL POLICY REGARDING FOREIGN 
GIFTS AND CONTRACTS TO FACULTY AND 
STAFF. 
‘‘(a) REQUIREMENT TO MAINTAIN POLICY AND DATA-
BASE.—Beginning not later than 90 days after the date of 
the enactment of the DETERRENT Act, each institution 
described in subsection (b) shall maintain— 
‘‘(1) a policy requiring covered individuals em-
ployed at the institution to disclose in a report to 
such institution on July 31 of each calendar year that 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
begins after the year in which such enactment date 
occurs— 
‘‘(A) any gift received from a foreign source 
in the previous calendar year, the value of which 
is greater than the minimal value (as such term 
is defined in section 7342(a) of title 5, United 
States Code) or is of undetermined value, and 
including the date on which the gift was re-
ceived; 
‘‘(B) any contract entered into with a for-
eign source in the previous calendar year, the 
value of which is $5,000 or more, considered 
alone or in combination with all other contracts 
with that foreign source within the calendar 
year, and including the date on which such con-
tract commences and, as applicable, the date on 
which such contract terminates; 
‘‘(C) any contract with a foreign source in 
force during the previous calendar year that has 
an undetermined monetary value, and including 
the date on which such contract commences and, 
as applicable, the date on which such contract 
terminates; and 
‘‘(D) any contract entered into with a for-
eign country of concern or foreign entity of con-
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
cern in the previous calendar year, the value of 
which is $0 or more, and including the begin-
ning and ending dates of such contract and the 
full text of such contract and any addenda; 
‘‘(2) a publicly available and searchable database 
(in electronic and downloadable format), on a website 
of the institution, of the information required to be 
disclosed under paragraph (1) that— 
‘‘(A) makes available the information dis-
closed under paragraph (1) beginning on the 
date that is 30 days after receipt of the report 
under such paragraph containing such informa-
tion and until the latest of— 
‘‘(i) the date that is 4 years after the 
date on which— 
‘‘(I) a gift referred to in para-
graph (1)(A) is received; or 
‘‘(II) a contract referred to in sub-
paragraph (B), (C) or (D) of para-
graph (1) begins; or 
‘‘(ii) the date on which a contract re-
ferred to in subparagraph (B), (C) or (D) 
of paragraph (1) terminates; and 
‘‘(B) is searchable and sortable by— 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(i) the date received (if a gift) or the 
date commenced (if a contract); 
‘‘(ii) the attributable country with re-
spect to which information is being dis-
closed; 
‘‘(iii) name of the individual making 
the disclosure; and 
‘‘(iv) the name of the foreign source 
(other than a foreign source who is a nat-
ural person); 
‘‘(3) a plan effectively to identify and manage 
potential information gathering by foreign sources 
through espionage targeting covered individuals that 
may arise from gifts received from, or contracts en-
tered into with, a foreign source, including through 
the use of— 
‘‘(A) periodic communications; 
‘‘(B) accurate reporting under paragraph 
(2) of the information required to be disclosed 
under paragraph (1); and 
‘‘(C) enforcement of the policy described in 
paragraph (1). 
‘‘(b) INSTITUTIONS.—An institution shall be subject to 
the requirements of this section if such institution— 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(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 Fed-
eral funds in any of the previous five calendar years 
to support (in whole or in part) research and develop-
ment (as determined by the institution and measured 
by the Higher Education Research and Development 
Survey of the National Center for Science and Engi-
neering Statistics); or 
‘‘(B) receives funds under title VI. 
‘‘(c) DEFINITIONS.—In this section— 
‘‘(1) the terms ‘foreign source’ and ‘gift’ have the 
meanings given such terms in section 117(g); 
‘‘(2) the term ‘contract’— 
‘‘(A) means any— 
‘‘(i) agreement for the acquisition, by 
purchase, lease, or barter, of property or 
services by a foreign source; 
‘‘(ii) affiliation, agreement, or similar 
transaction with a foreign source involving 
the use or exchange of the name, likeness, 
time, services, or resources of covered indi-
viduals employed at an institution de-
scribed in subsection (b); or 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(iii) purchase, lease, or barter of 
property or services from a foreign source 
that is a foreign country of concern or a 
foreign entity of concern; and 
‘‘(B) does not include any fair-market, 
arms-length agreement made by covered individ-
uals for the acquisition, by purchase, lease, or 
barter of property or services from a foreign 
source other than such a foreign source that is a 
foreign country of concern or a foreign entity of 
concern; 
‘‘(3) the term ‘covered individual’— 
‘‘(A) has the meaning given such term in 
section 223(d) of the William M. (Mac) Thorn-
berry National Defense Authorization Act for 
Fiscal Year 2021 (42 U.S.C. 6605); and 
‘‘(B) shall be interpreted in accordance with 
the Guidance for Implementing National Secu-
rity Presidential Memorandum 33 (NSPM–33) 
on National Security Strategy for United States 
Government-supported Research and Develop-
ment published by the Subcommittee on Research 
Security and the Joint Committee on the Re-
search Environment in January 2022; and 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(4) the term ‘professional staff’ means profes-
sional employees, as defined in section 3 of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 203).’’. 
SEC. 4. INVESTMENT DISCLOSURE REPORT. 
The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.), as amended by section 3 of this Act, is further 
amended by inserting after section 117B the following: 
‘‘SEC. 117C. INVESTMENT DISCLOSURE REPORT. 
‘‘(a) INVESTMENT DISCLOSURE REPORT.—A specified 
institution shall file a disclosure report in accordance with 
subsection (b) with the Secretary on July 31 immediately 
following any calendar year in which the specified institu-
tion purchases, sells, or holds (directly or indirectly through 
any chain of ownership) one or more investments of con-
cern. 
‘‘(b) CONTENTS OF REPORT.—Each report to the Sec-
retary required by subsection (a) with respect to any cal-
endar year shall contain the following: 
‘‘(1) A list of the investments of concern pur-
chased, sold, or held during such calendar year. 
‘‘(2) The aggregate fair market value of all in-
vestments of concern held as of the close of such cal-
endar year. 
‘‘(3) The combined value of all investments of 
concern sold over the course of such calendar year, as 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
measured by the fair market value of such invest-
ments at the time of the sale. 
‘‘(4) The combined value of all capital gains 
from such sales of investments of concern. 
‘‘(c) INCLUSION OF CERTAIN POOLED FUNDS.— 
‘‘(1) IN GENERAL.—An investment of concern ac-
quired through a regulated investment company, ex-
change traded fund, or any other pooled investment 
shall be treated as acquired through a chain of owner-
ship referred to in subsection (a), unless such pooled 
investment is certified by the Secretary as not holding 
any listed investments in accordance with subpara-
graph (B) of paragraph (2). 
‘‘(2) CERTIFICATIONS OF POOLED FUNDS.—The 
Secretary, after consultation with the Secretary of the 
Treasury, shall establish procedures under which cer-
tain regulated investment companies, exchange traded 
funds, and other pooled investments— 
‘‘(A) shall be reported in accordance with 
the requirements under subsection (b); and 
‘‘(B) may be certified by the Secretary as 
not holding any listed investments. 
‘‘(d) TREATMENT OF RELATED ORGANIZATIONS.—For 
purposes of this section, assets held by any related organiza-
tion (as defined in section 4968(d)(2) of the Internal Rev-
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
enue Code of 1986) with respect to a specified institution 
shall be treated as held by such specified institution, except 
that— 
‘‘(1) such assets shall not be taken into account 
with respect to more than 1 specified institution; and 
‘‘(2) unless such organization is controlled by 
such institution or is described in section 509(a)(3) of 
the Internal Revenue Code of 1986 with respect to 
such institution, assets which are not intended or 
available for the use or benefit of such specified insti-
tution shall not be taken into account. 
‘‘(e) VALUATION OF DEBT.—For purposes of this sec-
tion, the fair market value of any debt shall be the principal 
amount of such debt. 
‘‘(f) REGULATIONS.—The Secretary, after consultation 
with the Secretary of the Treasury, may issue such regula-
tions or other guidance as may be necessary or appropriate 
to carry out the purposes of this section, including regula-
tions or other guidance providing for the proper application 
of this section with respect to certain regulated investment 
companies, exchange traded funds, and pooled investments. 
‘‘(g) COMPLIANCE OFFICER.—Any specified institu-
tion that is required to submit a report under subsection 
(a) shall designate, before the submission of such report, and 
maintain a compliance officer, who shall— 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(1) be a current employee or legally authorized 
agent of such institution; 
‘‘(2) be responsible, on behalf of the institution, 
for personally certifying accurate compliance with the 
reporting requirements under this section; and 
‘‘(3) certify the institution has, for purposes of 
filing such report under subsection (a), followed an 
established institutional policy and conducted good 
faith efforts and reasonable due diligence to determine 
the accuracy and valuations of the assets reported. 
‘‘(h) DATABASE REQUIREMENT.—Beginning not later 
than 60 days before the July 31 immediately following the 
date of the enactment of the DETERRENT Act, the Sec-
retary shall— 
‘‘(1) establish and maintain a searchable data-
base on a website of the Department, under which all 
reports submitted under this section— 
‘‘(A) are made publicly available (in elec-
tronic and downloadable format), including any 
information provided in such reports; 
‘‘(B) can be individually identified and 
compared; and 
‘‘(C) are searchable and sortable; and 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(2) not later than 30 days after receipt of a dis-
closure report under this section, include such report 
in such database. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) INVESTMENT OF CONCERN.— 
‘‘(A) IN GENERAL.—The term ‘investment of 
concern’ means any specified interest with re-
spect to any of the following: 
‘‘(i) A foreign country of concern. 
‘‘(ii) A foreign entity of concern. 
‘‘(B) 
SPECIFIED
INTEREST.—The 
term 
‘specified interest’ means, with respect to any en-
tity— 
‘‘(i) stock or any other equity or profits 
interest of such entity; 
‘‘(ii) debt issued by such entity; and 
‘‘(iii) any contract or derivative with 
respect to any property described in clause 
(i) or (ii). 
‘‘(2) SPECIFIED INSTITUTION.— 
‘‘(A) IN GENERAL.—The term ‘specified in-
stitution’, as determined with respect to any cal-
endar year, means an institution if— 
‘‘(i) such institution is not a public in-
stitution; and 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(ii) the aggregate fair market value 
of— 
‘‘(I) the assets held by such insti-
tution at the end of such calendar year 
(other than those assets which are used 
directly in carrying out the institu-
tion’s exempt purpose) is in excess of 
$6,000,000,000; or 
‘‘(II) the investments of concern 
held by such institution at the end of 
such calendar year is in excess of 
$250,000,000 
‘‘(B) REFERENCES TO CERTAIN TERMS.— 
For the purpose of applying the definition under 
subparagraph (A), the terms ‘aggregate fair mar-
ket value’ and ‘assets which are used directly in 
carrying out the institution’s exempt purpose’ 
shall be applied in the same manner as such 
terms are applied for the purposes of section 
4968(b)(1)(D) of the Internal Revenue Code of 
1986.’’. 
SEC. 5. ENFORCEMENT AND OTHER GENERAL PROVISIONS. 
(a) ENFORCEMENT
AND OTHER GENERAL PROVI-
SIONS.—The Higher Education Act of 1965 (20 U.S.C. 
VerDate Sep 11 2014 
23:36 Nov 24, 2023
Jkt 049200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6203
E:\BILLS\H5933.RH
H5933
pbinns on DSKJLVW7X2PROD with $$_JOB