House Approves Legislation to Enhance Transparency Regarding Foreign Funding in Higher Education
The bipartisan legislation, referred to as the DETERRENT Act, aims to enhance disclosure regulations and prohibit contracts with adversarial nations unless approved by the federal government.
On March 27, the House of Representatives approved a bill that mandates American colleges and universities to reveal all foreign gifts and contracts from nations considered concerning, as part of an initiative to improve transparency and mitigate foreign influence within U.S. higher education.
The legislation, known as H.R. 1048—officially titled the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions (DETERRENT) Act—was passed with bipartisan support by a vote of 241–169.
A total of 210 Republicans and 31 Democrats voted in favor, while Rep. Don Bacon (R-Neb.) was the sole Republican opposition. Out of the Democrats, 168 voted against the legislation.
This measure would reduce the reporting threshold for foreign gifts and contracts from $250,000 to $50,000 and mandate the disclosure of any sum received from entities or countries deemed concerning, including China and Russia.
Moreover, it would prohibit educational institutions from forming contracts with such nations or entities without receiving a waiver from the Department of Education.
Additionally, the bill would require schools to disclose financial relationships between relevant individuals—such as faculty researchers—and foreign sources. Private universities with substantial endowments would have to report foreign investments on an annual basis.
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Rep. Michael Baumgartner (R-Wash.), who initiated the bill, stated that it targets harmful foreign influence that jeopardizes national security and academic integrity.
The legislation outlines penalties for institutions that do not comply, which could include the potential loss of eligibility for federal student financial aid.
Supporters argue that these reforms are necessary because the current disclosure regulations under Section 117 of the Higher Education Act are insufficiently enforced and overly lax.
A congressional investigation revealed that two prominent research universities failed to report almost $40 million in contracts associated with the Chinese Communist Party.
The committee noted in its statement that foreign adversaries exploit financial connections with universities to steal research, suppress free speech, and disseminate propaganda.
He expressed his satisfaction that the Act passed the House again with broad bipartisan support and urged the Senate to follow suit.
“Doing so will help protect against our adversaries while also requiring our institutions to adhere to higher standards instead of adopting a ‘take foreign money first, ask questions later’ approach,” he said.
Proponents of the bill addressed concerns that the increased reporting requirements might be onerous or infringe on faculty privacy, as articulated by critics.
A fact sheet provided by the bill’s supporters dismissed these assertions, clarifying that faculty disclosures would only pertain to gifts exceeding the same threshold applicable to members of Congress.
This bill also successfully passed the House in late 2024 but did not advance in the Senate under then-Majority Leader Chuck Schumer (R-N.Y.).
It is now heading back to the U.S. Senate, where it stands a greater chance of being considered during this session under Republican Majority Leader John Thune (R-S.D.).
