DETERRENT Act

This bill proposes to expand oversight and disclosure requirements for institutions of higher education regarding financial ties to foreign sources. It would lower the reporting threshold for foreign gifts and contracts to $50,000 and require the disclosure of any gift from a foreign country or entity of concern regardless of the dollar amount. Additionally, the legislation would prohibit institutions from entering into contracts with certain foreign countries of concern without a waiver and establish penalties for violations, including the potential loss of eligibility for federal student financial aid.

This bill primarily affects institutions of higher education (IHEs), including private institutions with specific assets or investments, by imposing new disclosure requirements for foreign gifts and contracts. It also impacts covered individuals, such as researchers, who must disclose certain financial relationships with foreign sources. Additionally, the Department of Education is tasked with investigating violations, which may result in institutions losing eligibility for federal student financial aid.

• Lowered disclosure thresholds for foreign gifts and contracts. The bill reduces the reporting threshold for gifts or contracts from most foreign sources from $250,000 to $50,000 and requires disclosure of any gift from a foreign country or entity of concern regardless of the dollar amount.
• Restrictions on contracts with countries of concern. Institutions of higher education are prohibited from entering into contracts with foreign countries or entities of concern, such as China or Russia, unless they obtain a specific waiver.
• Disclosure requirements for individual researchers. Certain institutions must disclose gifts or contracts made between foreign sources and covered individuals, such as researchers employed by the school.
• Investment reporting for private institutions. Private institutions of higher education with specified levels of assets or investments are required to file annual reports disclosing those investments.
• Enforcement and penalties for noncompliance. The Department of Education is mandated to investigate potential violations, with penalties for noncompliance including the possible loss of eligibility for federal student financial aid.

• H.R. 1048, DETERRENT Act
  Mar 10, 2025 · As ordered reported by the House Committee on Education and Workforce on February 12, 2025

This bill expands existing oversight and disclosure requirements for institutions of higher education regarding foreign gifts and contracts, specifically lowering the reporting threshold for certain foreign sources from $250,000 to $50,000. It also modifies enforcement mechanisms by authorizing the Department of Education to investigate violations and impose penalties, including the loss of eligibility for federal student financial aid programs.

The bill aims to expand federal oversight and transparency regarding the financial relationships between institutions of higher education and foreign entities. It establishes stricter disclosure requirements for foreign gifts and contracts, particularly those involving countries or entities of concern, to monitor foreign influence in American education.