Disclose GIFT Act

Bill: 119-hr-1999
Sponsor: full_name: Rep. James, John [R-MI-10]
Introduced: 2025-03-10
Policy area: Education
Latest action: action_date: 2025-03-10
text: Referred to the House Committee on Education and Workforce.

Summaries:

tv_txt: I 119th CONGRESS 1st Session H. R. 1999 IN THE HOUSE OF REPRESENTATIVES March 10, 2025 Mr. James (for himself and Ms. Foxx ) 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 require staff and faculty to report foreign gifts and contracts, and for other purposes.

1. Short title This Act may be cited as the Disclose Getting Involved in Foreign Transactions Act or the Disclose GIFT Act . 2. Policy regarding conflicts of interest from foreign gifts and contracts The Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq. ) is amended by inserting after section 117 the following: 117A. Institutional policy regarding foreign gifts and contracts to faculty and staff (a) Requirement To maintain policy and database Beginning not later than 90 days after the date of enactment of the Disclose GIFT Act , each institution described in subsection (b) shall maintain— (1) a policy requiring covered individuals employed at the institution to disclose in a report to such institution on July 31 of each calendar year that 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 received; (B) any contract with a foreign source (other than a foreign country of concern or foreign entity of concern) entered into or in effect during 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 contract is entered into, the date on which the contract first takes effect, and, as applicable, the date on which such contract terminates; (C) any contract with a foreign source (other than a foreign country of concern or foreign entity of concern) entered into or in effect during the previous calendar year that has an undetermined monetary value, and including the date on which such contract is entered into, the date on which the contract first takes effect, and, as applicable, the date on which such contract terminates; and (D) any contract entered into or in effect with a foreign country of concern or foreign entity of concern during the previous calendar year, the value of which is $0 or more or which has an undetermined monetary value, and including— (i) the date on which such contract is entered into; (ii) the date on which the contract first takes effect; (iii) if the contract has a termination date, such termination date; and (iv) 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) (other than the name or any other personally identifiable information of a covered individual) that— (A) makes available the information disclosed under paragraph (1) (other than the name or any other personally identifiable information of a covered individual) beginning on the date that is 30 days after receipt of the report under such paragraph containing such information and until the latest of— (i) the date that is 5 years after the date on which— (I) a gift referred to in paragraph (1)(A) is received; or (II) a contract referred to in subparagraph (B), (C) or (D) of paragraph (1) first takes effect; or (ii) the date on which a contract referred to in subparagraph (B), (C) or (D) of paragraph (1) terminates; and (B) is searchable and sortable— (i) if the subject of the disclosure is a gift, by the date on which the gift is received; (ii) if the subject of the disclosure is a contract— (I) by the date on which such contract is entered into; and (II) by the date on which such contract first takes effect; (iii) by the attributable country with respect to which information is being disclosed; (iv) by the narrowest of the department, school, or college of the institution, as applicable, for which the individual making the disclosure works; and (v) by the name of the foreign source (other than a foreign source who is a natural person); and (3) an effective plan to identify and manage potential information gathering by foreign sources through espionage targeting covered individuals that may arise from 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); and (4) for purposes of investigations under section 117B(a)(1) or responses to requests under section 552 of title 5, United States Code (commonly known as the Freedom of Information Act ), a record of the names of the individuals making disclosures under 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) Definitions In this section— (1) the term attributable country means— (A) the country of citizenship of a foreign source who is a natural person, or, if such country is unknown, the principal residence (as applicable) of such foreign source; or (B) the country of incorporation of a foreign source that is a legal entity, or, if such country is unknown, the principal place of business (as applicable) of such foreign source. (2) the term contract means— (A) any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source; (B) any affiliation, agreement, or similar transaction with a foreign source that involves the use or exchange of an institution’s name, likeness, time, services, or resources; and (C) any agreement for the acquisition by purchase, lease, or barter, of property 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 (3) the term covered individual — (A) has the meaning given such term in section 223(d) of the William M. (Mac) Thornberry 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 Security Presidential Memorandum 33 (NSPM–33) on National Security Strategy for United States Government-Supported Research and Development published by the Subcommittee on Research Security and the Joint Committee on the Research Environment in January 2022 (or any successor guidance). (4) the term foreign source means— (A) a foreign government, including an agency of a foreign government; (B) a legal entity, governmental or otherwise, created under the laws of a foreign state or states; (C) a legal entity, governmental or otherwise, substantially controlled (as described in section 668.174(c)(3) of title 34, Code of Federal Regulations) (or successor regulations)) by a foreign source; (D) a natural person who is not a citizen or a national of the United States or a trust territory or protectorate thereof; (E) an agent of a foreign source, including— (i) a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source; (ii) a person that operates primarily for the benefit of, or under the auspices of, a foreign source, including a foundation or a related entity (such as any educational, cultural, or language entity); and (iii) a person who is an agent of a foreign principal (as such term is defined in section 1 of the Foreign Agents Registration Act of 1938 ( 22 U.S.C. 611 ); and (F) an international organization (as such term is defined in the International Organizations Immunities Act ( 22 U.S.C. 288 )). (5) 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 elements of a student’s cost of attendance (as such term is defined in section 472) to an institution by, or scholarship from, a foreign 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 restricted or conditional contract with such foreign source; (ii) assignment or license of registered industrial and intellectual property rights, such as patents, utility models, trademarks, or copyrights, or technical assistance, that are not associated with a category listed in the Commerce Control List maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 1 to part 774 of title 15, Code of Federal Regulations (or successor regulations); or (iii) decorations (as such term is defined in section 7342(a) of title 5, United States Code). . 3. Enforcement and other general provisions (a) Enforcement and other general provisions The Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq. ), as amended by this Act, is further amended by inserting after section 117A the following: 117B. Enforcement; single point-of-contact; institutional requirements (a) Enforcement (1) Investigation The Secretary (acting through the General Counsel of the Department) shall conduct investigations of possible violations of section 117A and subsection (c) of this section by institutions and, whenever it appears that an institution has knowingly or willfully failed to comply with a requirement of any of such provisions (including any rule or regulation promulgated under any such provision), shall request that the Attorney General bring a civil action in accordance with paragraph (2). (2) Civil action Whenever it appears that an institution has knowingly or willfully failed to comply with a requirement of any of the provisions listed in paragraph (1) (including any rule or regulation promulgated under any such provision) based on an investigation under such paragraph, a civil action shall be brought by the Attorney 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 compliance with the requirement of the provision that has been violated. (3) Costs and other fines An institution that is compelled to comply with a requirement of a provision listed in paragraph (1) pursuant to paragraph (2) shall— (A) pay to the Treasury of the United States the full costs to the United States of obtaining compliance with the requirement of such provision, including all associated costs of investigation and enforcement; and (B) if applicable, be subject to the applicable fines described in paragraph (4). (4) Fines for violations The Secretary shall impose a fine on an institution that is compelled to comply with a requirement of section 117A pursuant to paragraph (2) as follows: (A) First-time violations In the case of an institution that is compelled to comply with a requirement of section 117A pursuant to a civil action described in paragraph (2), and that has not previously been compelled to comply with any such requirement pursuant to such a civil action, the Secretary shall impose a fine on the institution for such violation in an amount that is the greater of— (i) $250,000; or (ii) the total amount of gifts or contracts that the institution is compelled to report pursuant to such civil action. (B) Subsequent violations In the case of an institution that has previously been compelled to comply with a requirement of section 117A pursuant to a civil action described in paragraph (2), and is subsequently compelled to comply with such a requirement pursuant to a subsequent civil action described in paragraph (2), the Secretary shall impose a fine on the institution in an amount that is the greater of— (i) $500,000; or (ii) twice the total amount of gifts or contracts that the institution is compelled to report pursuant to such civil action. (b) Single point-of-Contact at the Department The Secretary shall maintain a single point-of-contact at the Department to— (1) receive and respond to inquiries and requests for technical assistance from institutions regarding compliance with the requirements of section 117A and subsection (c) of this section; (2) provide, every 90 days after the date of enactment of the status updates on any pending or completed investigations and civil actions under subsection (a)(1) to— (A) the authorizing committees; and (B) any institution that is the subject of such investigation or action; (3) maintain, on a publicly accessible website— (A) a full comprehensive list of all foreign countries of concern and foreign entities of concern; and (B) the date on which the last update was made to such list; and (4) not later than 7 days after making an update to the list maintained under paragraph (3)(A), notify each institution required to comply with the section listed in paragraph (1) of such update. (c) Institutional requirements for compliance officers and institutional policy requirements (1) In general An institution that is subject to the requirements of section 117A shall, not later than the date on which the institution first fulfills the requirements of such section— (A) establish an institutional policy that the institution shall follow in meeting the requirements of such section; and (B) designate and maintain at least one, but not more than three, current employees or legally authorized agents of such institution to serve as compliance officers to carry out the requirements listed in paragraph (2). (2) Duties of compliance officers A compliance officer designated by an institution under paragraph (1)(B) shall certify, whenever the institution is subject to the requirements of section 117A, that the institution— (A) is in compliance with the requirements of such section; and (B) followed the institutional policy established under paragraph (1)(A). (d) Definitions For purposes of section 117A and this section: (1) Foreign country of concern The term foreign country of concern means the following: (A) Any covered nation defined in section 4872 of title 10, United States Code. (B) Any country the Secretary, in consultation with the Secretary of Defense, the Secretary of State, and the Director of National Intelligence, determines, for purposes of section 117A or this section, to be engaged in conduct that is detrimental to the national security or foreign policy of the United States. (2) 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 Defense Authorization Act for Fiscal Year 2019 (10 U.S.C. 22 4001 note; Public Law 115–232 ). (3) Institution The term institution means an institution of higher education (as such term is defined in section 102, other than an institution described in subsection (a)(1)(C) of such section). . (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 requirements of sections 117A and 117B(c). (B) In the case of an institution described in subparagraph (C), the institution will— (i) be ineligible to participate in the programs authorized by this title for a period of not less than 2 institutional fiscal years; and (ii) in order to regain eligibility to participate in such programs, demonstrate compliance with all requirements of each such section for not less than 2 institutional fiscal years after the institutional fiscal year in which such institution became ineligible. (C) An institution described in this subparagraph is an institution that has been subject to 3 separate civil actions described in section 117B(a)(2) that have each resulted in the institution being compelled to comply with one or more requirements of section 117A or 117B(c). . (c) GAO Study and Report (1) Study Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall initiate a study to identify ways to improve intergovernmental agency coordination regarding implementation and enforcement of sections 117A and 117B(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ), as added by this Act, including increasing information sharing, increasing compliance rates, and establishing processes for enforcement. (2) Report Not later than 3 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress, and make public, a report containing the results of the study described in paragraph (1) .