[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Pages S3571-S3576]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6448. Mr. TILLIS (for himself and Mr. Cassidy) submitted an
amendment intended to be proposed by him to the bill S. 4784, to
authorize appropriations for fiscal year 2027 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
At the appropriate place in title X, insert the following:
Subtitle __--Deterrent Act
SEC. __. SHORT TITLE.
This subtitle may be cited as the ``Defending Education
Transparency and Ending Rogue Regimes Engaging in Nefarious
Transactions Act'' or the ``DETERRENT Act''.
SEC. __. DISCLOSURES OF FOREIGN GIFTS.
(a) In General.--Section 117 of the Higher Education Act of
1965 (20 U.S.C. 1011f) is amended to read as follows:
``SEC. 117. DISCLOSURES OF FOREIGN GIFTS.
``(a) Disclosure Reports.--
``(1) Aggregate gifts and contract disclosures.--An
institution shall file with the Secretary, in accordance with
subsection (b)(1), a disclosure report on July 31 of the
calendar year immediately following any calendar year in
which--
``(A) the institution receives a gift from, or enters into
a contract with, a foreign source (other than a foreign
country of concern or foreign entity of concern)--
``(i) the value of which is $50,000 or more, considered
alone or in combination with all other gifts from, or
contracts with, that foreign source within the calendar year;
or
``(ii) the value of which is indeterminate; or
``(B) the institution--
``(i) receives a gift from a foreign country of concern or
foreign entity of concern, without regard to the value of
such gift; or
``(ii) upon receiving a waiver under section 117A to enter
into a contract with such a country or entity, enters into
such contract, without regard to the value of such contract.
``(2) Foreign source ownership or control disclosures.--
Notwithstanding paragraph (1), in the case of an institution
that is substantially controlled (as described in section
668.174(c)(3) of title 34, Code of Federal Regulations) (or
successor regulations)) by a foreign source, the institution
shall file with the Secretary, in accordance with subsection
(b)(2), a disclosure report on July 31 of each year.
``(3) Treatment of affiliated entities.--For purposes of
this section, any gift to, or contract with, an affiliated
entity of an institution shall be considered a gift to, or
contract with, respectively, such institution.
``(b) Contents of Report.--
``(1) Gifts and contracts.--Each report to the Secretary
required under subsection (a)(1) shall include the following:
``(A) With respect to a gift received from, or a contract
entered into with, any foreign source--
``(i) the name of the individual, department, or other
entity at the institution, or the institution's affiliated
entity, receiving the gift or carrying out the contract on
behalf of the institution;
``(ii) any intended purpose of the gift or contract
communicated to the institution by the foreign source, and,
as of the date of filing such report, the manner in which the
institution intends to use such gift or contract;
``(iii) in the case of a restricted or conditional gift or
contract, a description of each restriction or condition that
meets the definition of the term `restricted or conditional
gift or contract' in subsection (f);
``(iv) with respect to such a gift--
``(I) the total fair market dollar amount or dollar value
of the gift, as of the date of submission of such report; and
``(II) the date on which the institution received such
gift;
``(v) with respect to such a contract--
``(I) the total fair market dollar amount or dollar value
of the contract, as of the date of submission of such report;
``(II) the date on which the institution enters into such
contract;
``(III) the date on which such contract first takes effect;
``(IV) if the contract has a termination date, such
termination date; and
``(V) an assurance that the institution will--
``(aa) maintain an unredacted copy of the contract until
the latest of--
``(AA) the date that is 5 years after the date on which
such contract first takes effect;
``(BB) the date on which the contract terminates; or
``(CC) the last day of any period that applicable State law
requires a copy of such contract to be maintained; and
``(bb) upon request of the Secretary during an
investigation under section 117C(a)(1), produce such an
unredacted copy of the contract.
``(B) With respect to a gift received from, or a contract
entered into with, a foreign source that is a foreign
government (other than the government of a foreign country of
concern)--
``(i) the name of such foreign government;
``(ii) the department, agency, office, or division of such
foreign government that approved such gift or contract, as
applicable; and
``(iii) the physical mailing address of such department,
agency, office, or division.
``(C) With respect to a gift received from, or contract
entered into with, a foreign source other than a foreign
government subject to the requirements of subparagraph (B)--
``(i)(I) the legal name of the foreign source; or
``(II) in the case of a gift received from a foreign source
that awarded such gift to the institution as an agent
described in subsection (f)(4)(G) on behalf of another
foreign source--
``(aa) the legal name of the foreign source that awarded
such gift; and
``(bb) the legal name of the foreign source on whose behalf
the gift was awarded, or a statement certified by a
compliance officer in accordance with section 117C(c) that
the institution has reasonably attempted to obtain such name;
``(ii) in the case of a foreign source that is a natural
person, each country of citizenship of such person, or, if no
such country is known, the principal country of residence of
such person;
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``(iii) in the case of a foreign source that is a legal
entity, the country in which such entity is incorporated, or,
if such information is not available, the principal place of
business of such entity;
``(iv) the physical mailing address of such foreign source,
or, if such address is not available, a statement certified
by a compliance officer in accordance with section 117C(c)
that the institution has reasonably attempted to obtain such
address; and
``(v) any affiliation of the foreign source to an
organization that is designated as a foreign terrorist
organization pursuant to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189).
``(D) With respect to a contract entered into with a
foreign source that is a foreign country of concern or a
foreign entity of concern--
``(i) a complete and unredacted copy of the original
contract, and if such original contract is not in English, a
translated copy in accordance with subsection (c);
``(ii) a copy of the waiver received under section 117A for
such contract; and
``(iii) the statement submitted by the institution for
purposes of receiving such a waiver under section 117A(b)(2).
``(E) With respect to a gift received from a foreign source
that is a foreign country of concern or a foreign entity of
concern, an assurance that the institution will--
``(i) in a case in which the institution received
documentation relating to such gift, maintain such
documentation until the latest of--
``(I) the date that is 5 years after the date such gift was
received by the institution; or
``(II) the last day of any period that applicable State law
requires a copy of such documentation to be maintained; and
``(ii) upon request of the Secretary during an
investigation under section 117C(a)(1), produce such
documentation;
``(2) Foreign source ownership or control.--Each report to
the Secretary required under subsection (a)(2) shall
contain--
``(A) the information required under paragraph (1) of this
subsection;
``(B) the legal name and the mailing address of the foreign
source that substantially controls the institution as
described in such subsection;
``(C) the date on which the foreign source assumed such
substantial control; and
``(D) any changes in program or structure of the
institution of higher education resulting from such
substantial control.
``(c) Translation Requirements.--Any information required
to be disclosed under this section, or requested by the
Secretary pursuant to an investigation under section
117C(a)(1), with respect to a gift or contract that is not in
English shall be translated into English, for purposes of
such disclosure or such investigation, by a person that is
not--
``(1) a foreign source that awarded such gift or entered
into such contract; or
``(2) any other foreign source from an attributable country
of a foreign source referred to in paragraph (1).
``(d) Public Inspection.--
``(1) Database requirement.--Beginning not later than May
31 of the calendar year following the date of enactment of
the DETERRENT Act, the Secretary shall--
``(A) establish and maintain a searchable database on a
website of the Department, under which all reports submitted
under this section (including any report submitted under this
section before the date of enactment of the DETERRENT Act)--
``(i) are made publicly available (in electronic and
downloadable format), including any information provided in
such reports (other than the information prohibited from
being publicly disclosed pursuant to paragraph (2));
``(ii) can be individually identified and compared; and
``(iii) are searchable and sortable--
``(I) by the institution that filed such report;
``(II) by the date on which the institution filed such
report, including the date of any amendment to the report;
``(III) by the date on which the institution received the
gift which is the subject of the report;
``(IV) by the date on which the institution enters into the
contract which is the subject of the report;
``(V) by the date on which such contract first takes
effect;
``(VI) by the attributable country of such gift or
contract;
``(VII) by the full and accurate name of the foreign
source;
``(VIII) by the information described in subparagraph
(C)(i); and
``(IX) by the information described in subparagraph
(C)(ii);
``(B) not later than 30 days after receipt of a disclosure
report under this section, include such report in such
database;
``(C) indicate, as part of the public record of a report
included in such database, whether the report is with respect
to a gift received from, or a contract entered into with--
``(i) a foreign source that is a foreign government; or
``(ii) a foreign source that is not a foreign government;
and
``(D) with respect to a disclosure report that does not
include the name or address of a foreign source, indicate, as
part of the public record of such report included in such
database, that such report did not include such information.
``(2) Application of federal privacy law; protections for
natural persons.--
``(A) Application of federal privacy law.--Except as
provided in subparagraph (B), a disclosure report filed
pursuant to this section is not subject to Federal privacy
law (including any exemption from disclosure described in
section 552(b) of title 5, United States Code)).
``(B) Protections for natural persons.--
``(i) In general.--Except as provided in clause (ii), with
respect to a disclosure report filed under this section, the
name or address (other than the attributable country) of a
foreign source who is a natural person--
``(I) may not be publicly disclosed; and
``(II) is exempt from disclosure under subsection (b)(3) of
section 552 of title 5, United States Code (commonly referred
to as the Freedom of Information Act).
``(ii) Exceptions for contracts with a foreign country of
concern or foreign entity of concern.--Clause (i) shall not
apply to a disclosure report filed pursuant to this section
that contains information with respect to a contract
described in subsection (a)(1)(B)(ii) entered into with a
foreign country of concern or foreign entity of concern.
``(e) Interagency Information Sharing.--Notwithstanding any
other provision of law, not later than 30 days after
receiving a disclosure report from an institution in
compliance with this section, the Secretary shall provide
access to an unredacted copy of such report (including the
name and address of a foreign source disclosed in such
report), through a portal maintained by the Department, to
the Director of the Federal Bureau of Investigation, the
Director of National Intelligence, the Director of the
Central Intelligence Agency, the Secretary of State, the
Secretary of Defense, the Attorney General, the Secretary of
Commerce, the Secretary of Homeland Security, the Secretary
of Energy, the Director of the National Science Foundation,
and the Director of the National Institutes of Health.
``(f) Definitions.--In this section:
``(1) Affiliated entity.--The term `affiliated entity',
when used with respect to an institution, means an entity or
organization that operates primarily for the benefit of, or
under the auspices of, such institution, such as a foundation
of the institution, or an educational, cultural, or language
entity.
``(2) Attributable country.--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 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.
``(3) Contract.--The term `contract'--
``(A) means--
``(i) any agreement for the acquisition by purchase, lease,
or barter of property (including intellectual property) or
services by the foreign source;
``(ii) except as provided in subparagraph (B)(ii), any
agreement for the acquisition by purchase, lease, or barter
of property (including intellectual property) or services
from a foreign source; and
``(iii) 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
``(B) does not include--
``(i) an agreement made between an institution and a
foreign source regarding any payment of one or more elements
of a student's cost of attendance (as such term is defined in
section 472), unless such an agreement is made for more than
15 students or is made under a restricted or conditional
contract;
``(ii) an arms-length agreement for the acquisition by
purchase, lease, or barter of property (including
intellectual property) or services from a foreign source that
is not a foreign country of concern or a foreign entity of
concern that is identified on the list published under
section 1286(c)(9)(A) of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (10 U.S.C. 4001 note;
Public Law 115-232) or is a Chinese military company that is
identified on the list required by section 1260H of the
William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (10 U.S.C. 113 note, Public Law 116-
283); or
``(iii) any assignment or license of a granted intellectual
property right (including a patent, trademark, or copyright)
that is 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).
``(4) Foreign source.--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;
[[Page S3573]]
``(E) an international organization (as such term is
defined in the International Organizations Immunities Act (22
U.S.C. 288));
``(F) 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
``(G) an agent of any of the entities described in
subparagraphs (A) through (F), including--
``(i) a subsidiary or affiliate of a foreign legal entity,
acting on behalf of such an entity; and
``(ii) a person that operates primarily for the benefit of,
or under the auspices of, such an entity, such as a
foundation of such entity, or an educational, cultural, or
language entity.
``(5) Gift.--The term `gift'--
``(A) means any gift of money, property (including
intellectual 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) any assignment or license of a granted intellectual
property right (including a patent, trademark, or copyright)
that is 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).
``(6) Restricted or conditional gift or contract.--The term
`restricted or conditional gift or contract' means any
endowment, gift, grant, contract, award, present, or property
(including intellectual property) of any kind which includes
provisions regarding--
``(A) the employment, assignment, or termination of
faculty;
``(B) the establishment of, or the provision of funding
for, departments, centers, institutes, instructional
programs, research or lecture programs, or new faculty
positions;
``(C) the selection, admission, or education of students;
or
``(D) the award of grants, loans, scholarships,
fellowships, or other forms of financial aid restricted to
students of a specified country, religion, sex, ethnic
origin, or political opinion.''.
(b) Prohibition on Contracts With Certain Foreign Entities
and Countries.--Part B of title I of the Higher Education Act
of 1965 (20 U.S.C. 1011 et seq.) is amended by inserting
after section 117 the following:
``SEC. 117A. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN
ENTITIES AND COUNTRIES.
``(a) In General.--An institution shall not enter into a
contract with a foreign country of concern or a foreign
entity of concern.
``(b) Waivers.--
``(1) In general.--A waiver issued under this section to an
institution with respect to a contract shall only--
``(A) waive the prohibition under subsection (a) for a 1-
year period; and
``(B) apply to the terms and conditions of the proposed
contract submitted as part of the request for such waiver.
``(2) Submission.--
``(A) First waiver requests.--
``(i) In general.--An institution that desires to enter
into a contract with a foreign entity of concern or a foreign
country of concern may submit to the Secretary, not later
than 120 days before the institution enters into such a
contract, a request to waive the prohibition under subsection
(a) with respect to such contract.
``(ii) Contents of waiver request.--A waiver request
submitted by an institution under clause (i) shall include--
``(I) the complete and unredacted text of the proposed
contract for which the waiver is being requested, and if such
original contract is not in English, a translated copy of the
text into English (in a manner that complies with section
117(c)); and
``(II) a statement that--
``(aa) is certified by a compliance officer of the
institution designated in accordance with section 117C(c);
and
``(bb) includes information that demonstrates that such
contract--
``(AA) is for the benefit of the institution's mission and
students; and
``(BB) will promote the security, stability, and economic
vitality of the United States.
``(B) Renewal waiver requests.--
``(i) In general.--An institution that, pursuant to a
waiver issued under this section, has entered into a
contract, the term of which is longer than the 1-year waiver
period and the terms and conditions of which remain the same
as the proposed contract submitted as part of the request for
such waiver may submit, not later than 120 days before the
expiration of such waiver period, a request for a renewal of
such waiver for an additional 1-year period (which shall
include any information requested by the Secretary).
``(ii) Termination.--If the institution fails to submit a
request under clause (i) or is not granted a renewal under
such clause, such institution shall terminate such contract
on the last day of the original 1-year waiver period.
``(3) Waiver issuance.--The Secretary--
``(A) not later than 60 days before an institution enters
into a contract pursuant to a waiver request under paragraph
(2)(A), or before a contract described in paragraph (2)(B)(i)
is renewed pursuant to a renewal request under such
paragraph, shall notify the institution--
``(i) if the waiver or renewal will be issued by the
Secretary; and
``(ii) in a case in which the waiver or renewal will be
issued, the date on which the 1-year waiver period starts;
and
``(B) may only issue a waiver under this section to an
institution if the Secretary determines, in consultation with
each individual listed in section 117(e), that the contract
for which the waiver is being requested--
``(i) is for the benefit of the institution's mission and
students; and
``(ii) will promote the security, stability, and economic
vitality of the United States.
``(4) Disclosure.--Not less than 2 weeks prior to issuing a
waiver under paragraph (2), the Secretary shall notify the
authorizing committees of the intent to issue the waiver,
including a justification for the waiver.
``(c) Designation During Contract Term.--In the case of an
institution that enters into a contract with a foreign source
that is not a foreign country of concern or a foreign entity
of concern but which, during the term of such contract, is
designated as a foreign country of concern or foreign entity
of concern, such institution shall terminate such contract
not later than 60 days after the Secretary notifies the
institution of such designation or request a waiver.
``(d) Contracts Prior to Date of Enactment.--
``(1) In general.--In the case of an institution that has
entered into a contract with a foreign country of concern or
foreign entity of concern prior to the date of enactment of
the DETERRENT Act--
``(A) the institution shall as soon as practicable, but not
later than 30 days after such date of enactment, submit to
the Secretary a waiver request in accordance with clause (ii)
of subsection (b)(2)(A); and
``(B) the Secretary shall, upon receipt of the request
submitted under such clause, issue a waiver to the
institution for a period beginning on the date on which the
waiver is issued and ending on the sooner of--
``(i) the date that is 1 year after the date of enactment
of the DETERRENT Act; or
``(ii) the date on which the contract terminates.
``(2) Renewal.--An institution that has entered into a
contract described in paragraph (1), the term of which is
longer than the waiver period described in subparagraph (B)
of such paragraph and the terms and conditions of which
remain the same as the contract submitted as part of the
request required under subparagraph (A) of such paragraph,
may submit a request for renewal of the waiver issued under
such paragraph in accordance with subsection (b)(2)(B).
``(e) Contract Defined.--The term `contract' has the
meaning given such term in section 117(f).''.
(c) Interagency Information Sharing.--Notwithstanding any
other provision of law, not later than 90 days after the date
of enactment of this Act, the Secretary of Education shall
provide access, through a portal maintained by the Department
of Education, to each individual listed in section 117(e) of
the Higher Education Act of 1965, as amended by this Act--
(1) an unredacted copy of each report (including the name
and address of a foreign source disclosed in such report)
received by the Department of Education under section 117 of
the Higher Education Act of 1965 (20 U.S.C. 1011f) prior to
the date of enactment of this Act); and
(2) any report, document, or other record generated 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 enactment of this Act.
SEC. __. 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 the preceding section, 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 Database.--
Beginning not later than 90 days after the date of enactment
of the DETERRENT Act, each institution described in
subsection (b) shall maintain--
``(1) a policy requiring covered individuals at the
institution and covered individuals at affiliated entities of
the institution to disclose in a report to such institution
by 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 indeterminate value,
and including the date on which the gift was received, except
if--
``(i) the gift--
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``(I) is given by a foreign source who is a natural person
acting in an individual capacity and not on behalf of, or at
the request or direction of, any other person or entity;
``(II) is given under circumstances that make clear the
gift is motivated by a family relationship or personal
friendship rather than by the covered individual's position
at, or the foreign source's interest in, the institution;
``(III) is not given by, or on behalf of, a foreign country
of concern, a foreign entity of concern, or an agent of a
foreign principal (as defined in section 1 of the Foreign
Agents Registration Act of 1938 (22 U.S.C. 611)); and
``(IV) does not exceed a value of $5,000 alone or in
combination with all other gifts from such foreign source
during that calendar year; and
``(ii) the covered individual provides the institution a
written attestation that the gift satisfies subclauses (I)
through (IV) of clause (i) and the institution retains and
makes available the written attestation for investigations
under section 117C(a)(1);
``(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 indeterminate 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 indeterminate 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 link on the website of the institution to the
database established under section 117(d)(1);
``(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
117C(a)(1), a record of the name of each individual who makes
a disclosure under paragraph (1) and each report disclosed
under such paragraph.
``(b) Institutions.--An institution shall be subject to the
requirements of this section if such institution--
``(1) 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
``(2) receives funds under title VI.
``(c) Application of Federal Privacy Law; Protections for
Natural Persons.--
``(1) Application of federal privacy law.--Except as
provided in paragraph (2), a disclosure made pursuant to this
section is not subject to Federal privacy law.
``(2) Protections for natural persons.--
``(A) In general.--Except as provided in subparagraph (B),
with respect to a disclosure made pursuant to this section,
the following may not be publicly disclosed:
``(i) The name or address (other than the attributable
country) of a foreign source that is a natural person.
``(ii) The name or any other personally identifiable
information of a covered individual making such disclosure.
``(B) Exceptions for contracts with a foreign country of
concern or foreign entity of concern.--Subparagraph (A) shall
not apply to a disclosure made pursuant to this section that
contains information with respect to a contract entered into
with a foreign country of concern or foreign entity of
concern.
``(d) Definitions.--In this section--
``(1) the terms `affiliated entity', `attributable
country', `foreign source', and `gift' have the meanings
given such terms in section 117(f);
``(2) the term `contract'--
``(A) means--
``(i) any agreement for the acquisition by purchase, lease,
or barter of property (including intellectual property) or
services by the foreign source;
``(ii) except as provided in subparagraph (B), any
agreement for the acquisition by purchase, lease, or barter
of property (including intellectual property) or services
from a foreign source; and
``(iii) any affiliation, agreement, or similar transaction
with a foreign source that involves the use or exchange of a
covered individual's name, likeness, time, services, or
resources; and
``(B) does not include--
``(i) an arms-length agreement for the acquisition by
purchase, lease, or barter of property (including
intellectual property) or services from a foreign source that
is not a foreign country of concern or a foreign entity of
concern; and
``(ii) any assignment or license of a granted intellectual
property right (including a patent, trademark, or copyright)
that is 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); 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).''.
SEC. __. 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 117B
the following:
``SEC. 117C. 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 sections 117, 117A,
117B, 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 a section listed in paragraph (1) pursuant to
paragraph (2) as follows:
``(A) Section 117.--
``(i) First-time violations.--In the case of an institution
that is compelled to comply with a requirement of section 117
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 as follows:
``(I) In the case of an institution that knowingly or
willfully fails to comply with a reporting requirement under
subsection (a)(1) of section 117, such fine shall be in an
amount that is--
``(aa) for each gift or contract with determinable value
that is the subject of such a failure to comply, the greater
of--
``(AA) $71,545, adjusted for academic year 2027-2028 and
annually thereafter in accordance with inflation as
determined by the Department of Labor's Consumer Price Index
for the previous calendar year; or
``(BB) the monetary value of such gift or contract; or
``(bb) for each gift or contract of no value or of
indeterminable value, not less than 1 percent and not more
than 10 percent of the total amount of Federal funds received
by the institution under this Act for the most recent fiscal
year.
``(II) In the case of an institution that knowingly or
willfully fails to comply with the reporting requirement
under subsection (a)(2) of section 117, such fine shall be in
an amount that is not less than 10 percent of the total
amount of Federal funds received
[[Page S3575]]
by the institution under this Act for the most recent fiscal
year.
``(ii) Subsequent violations.--In the case of an
institution that has previously been compelled to comply with
a requirement of section 117 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 as follows:
``(I) In the case of an institution that knowingly or
willfully fails to comply with a reporting requirement under
subsection (a)(1) of section 117, such fine shall be in an
amount that is--
``(aa) for each gift or contract with determinable value
that is the subject of such a failure to comply, the greater
of--
``(AA) $100,000; or
``(BB) twice the monetary value of such gift or contract;
or
``(bb) for each gift or contract of no value or of
indeterminable value, not less than 5 percent and not more
than 10 percent of the total amount of Federal funds received
by the institution under this Act for the most recent fiscal
year.
``(II) In the case of an institution that knowingly or
willfully fails to comply with a reporting requirement under
subsection (a)(2) of section 117, such fine shall be in an
amount that is not less than 20 percent of the total amount
of Federal funds received by the institution under this Act
for the most recent fiscal year.
``(B) Section 117a.--
``(i) 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 in an amount
that is not less than 5 percent and not more than 10 percent
of the total amount of Federal funds received by the
institution under this Act for the most recent fiscal year.
``(ii) 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 not less than
20 percent of the total amount of Federal funds received by
the institution under this Act for the most recent fiscal
year.
``(C) Section 117b.--
``(i) First-time violations.--In the case of an institution
that is compelled to comply with a requirement of section
117B 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.
``(ii) Subsequent violations.--In the case of an
institution that has previously been compelled to comply with
a requirement of section 117B 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.
``(D) Ineligibility for waiver.--In the case of an
institution that is fined pursuant to subparagraph (A)(ii),
(B)(ii), or (C)(ii), the Secretary shall prohibit the
institution from obtaining a waiver, or a renewal of a
waiver, under section 117A.
``(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 sections 117, 117A, 117B, and
subsection (c) of this section;
``(2) coordinate and implement technical improvements to
the database described in section 117(d)(1), including--
``(A) improving upload functionality by allowing for batch
reporting, including by allowing institutions to upload one
file with all required information into the database;
``(B) publishing and maintaining a database users guide,
which shall be reviewed and updated as practicable but not
less than annually, including information on how to edit an
entry and how to report errors;
``(i) include at least--
``(I) 3 members representing public institutions with high
or very high levels of research activity (as defined by the
National Center for Education Statistics);
``(II) 2 members representing private, nonprofit
institutions with high or very high levels of research
activity (as so defined);
``(III) 2 members representing proprietary institutions of
higher education (as defined in section 102(b)); and
``(IV) 2 members representing area career and technical
education schools (as defined in subparagraph (C) or (D) of
section 3(3) of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302(3))); and
``(ii) meet at least twice a year with officials from the
Department to discuss possible database improvements;
``(C) publishing, on a publicly available website,
recommended database improvements; and
``(D) responding, on a publicly available website, to each
recommendation published under subparagraph (D) as to whether
or not the Department will implement the recommendation,
including the rationale for either approving or rejecting the
recommendation;
``(3) provide, every 90 days after the date of enactment of
the DETERRENT Act, 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;
``(4) 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
``(5) not later than 7 days after making an update to the
list maintained under paragraph (4)(A), notify each
institution required to comply with the sections listed in
paragraph (1) of such update.
``(c) Institutional Requirements for Compliance Officers
and Institutional Policy Requirements.--
``(1) In general.--An institution that is required to file
a report under section 117, that is seeking a waiver under
section 117A, or that is subject to the requirements of
section 117B, shall, not later than the earlier of the date
on which the institution files the first report under section
117, requests the institution's first waiver under section
117A, or first fulfills the requirements of section 117B--
``(A) establish an institutional policy that the
institution shall follow in meeting the requirements of
sections 117, 117A, and 117B; 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--
``(A) whenever the institution is required to file a report
under section 117--
``(i) the institution's accurate compliance with the
reporting requirements under such section;
``(ii) that the institution, in filing such report under
section 117--
``(I) followed the institutional policy established under
paragraph (1)(A) applicable to such section; and
``(II) conducted good faith efforts and reasonable due
diligence to ensure that accurate information is provided in
such report; and
``(iii) any statements by the institution required to be
certified by such an officer under clause (i) or (iv) of
section 117(b)(1)(C); and
``(B) whenever the institution requests a waiver under
section 117A--
``(i) that the institution--
``(I) is in compliance with the requirements of such
section; and
``(II) followed the institutional policy established under
paragraph (1)(A) applicable to such section; and
``(ii) the statement by the institution required to be
certified by such an officer under section
117A(b)(2)(A)(ii)(II); and
``(C) whenever the institution is subject to the
requirements of section 117B, that the institution--
``(i) is in compliance with the requirements of such
section; and
``(ii) followed the institutional policy established under
paragraph (1)(A) applicable to such section.
``(d) Definitions.--For purposes of sections 117, 117A,
117B, 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, including any special administrative
region within such a covered nation or any other territory
that the United States recognizes as being under the control
of such a covered nation on or after the date of the
enactment of this subsection.
``(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 sections 117, 117A, 117B, 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) a foreign entity that is identified on the list
published under section 1286(c)(9)(A) of the John S. McCain
National Defense Authorization Act for Fiscal Year 2019 (10
U.S.C. 4001 note; Public Law 115-232); and
[[Page S3576]]
``(B) a Chinese military company that is identified on the
list required by section 1260H of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (10 U.S.C. 113 note; Public Law 116-283).
``(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) with a program
participation agreement under section 487.''.
(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 117, 117A, 117B, and 117C(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--
``(i) against which judgment has been granted in 3 separate
civil actions described in section 117C(a)(2) that have each
resulted in the institution being compelled to comply with
one or more requirements of section 117, 117A, 117B, or
117C(c); and
``(ii) that pursuant to section 117C(a)(4)(E), is
prohibited from obtaining a waiver, or a renewal of a waiver,
under section 117A.''.
(c) GAO Study and Report.--
(1) Study.--Not later than January 31 of the second
calendar year that begins 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 117, 117A, 117B,
and 117C(c) of the Higher Education Act of 1965 (20 U.S.C.
1011f), as amended or 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 the
initiation of the study under paragraph (1), 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).
______