DETERRENT Act

The DETERRENT Act aims to enhance transparency and national security by amending the Higher Education Act of 1965 regarding foreign financial influence on colleges and universities. It mandates comprehensive disclosure of gifts and contracts from foreign sources, requiring institutions to report transactions valued at $50,000 or more , or of indeterminate value. All gifts from "foreign countries of concern" or "foreign entities of concern" must be reported regardless of value, as must contracts with these entities after a waiver. The bill introduces a strict prohibition on institutions entering into new contracts with foreign countries or entities of concern. Waivers for such contracts are limited to one-year periods and require a certified statement demonstrating benefit to the institution's mission and U.S. national security. If a foreign source becomes a country or entity of concern during an existing contract, the institution must terminate that contract within 60 days. Furthermore, the legislation requires institutions receiving significant federal research funds or Title VI funds to establish policies for faculty and staff to disclose their individual foreign gifts and contracts. These individual disclosures, including the full text of contracts with countries of concern, must be made publicly available in a searchable database maintained by the institution. Institutions must also develop plans to manage potential espionage risks associated with these foreign engagements. To ensure compliance, the Secretary of Education is empowered to investigate violations and request the Attorney General to initiate civil actions. Institutions found in knowing or willful non-compliance face substantial fines, which can escalate for repeat offenses. These fines are based on the value of undisclosed gifts/contracts or a percentage of federal funds received by the institution. Repeat offenders may also be prohibited from obtaining waivers for contracts with foreign countries of concern and could become ineligible for federal student aid programs for at least two years. The bill also mandates the creation of a public, searchable database for institutional disclosures and requires extensive interagency information sharing of all reported foreign gifts and contracts. A single point-of-contact within the Department of Education will provide guidance and coordinate database improvements, while a GAO study will assess intergovernmental coordination on enforcement.