This bill significantly strengthens oversight and enforcement regarding foreign financial influence in higher education by amending the Higher Education Act of 1965 and the Internal Revenue Code. It mandates that the Secretary of Education conduct biennial audits of no fewer than 30 institutions to assess their compliance with existing foreign gift and contract reporting requirements. These audits will prioritize institutions with large endowments , a history of substantial foreign engagements , previous noncompliance , or those receiving contributions from foreign entities of concern . The audits will determine compliance for the two prior reporting years and, in cases of noncompliance, identify specific under- or over-reported gifts and contracts, including their amounts, foreign sources, countries of origin, and relevant dates. Following each audit, the Secretary must submit a report to Congress detailing the findings and make this report publicly available on the Department of Education website, ensuring transparency and accountability in foreign financial dealings. Furthermore, the bill introduces new excise taxes to penalize non-compliance and discourage certain foreign funding. A 300% excise tax will be imposed on "applicable institutions" for income received from any foreign country of concern , defined as an eligible educational institution meeting specific student enrollment and location criteria. Additionally, a 110% excise tax will be levied on institutions for "unreported foreign funding" discovered through the mandated audits. This tax applies to any gift, contract, or change in ownership/control that was required to be reported but was not. If the unreported funding originates from a foreign country of concern, this 110% tax is imposed in addition to the 300% tax, creating a substantial financial disincentive for non-disclosure and engagement with adversarial foreign entities.