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Standard Summary
Comprehensive overview in 1-2 paragraphs
The DETERRENT Act would overhaul how U.S. colleges and universities disclose and manage foreign gifts and contracts. It tightens reporting requirements, creates a public database of disclosures, and imposes a broad prohibition on contracts with foreign countries of concern or foreign entities of concern, with a waivable one-year exemption. It also requires institutions to implement conflict-of-interest policies, establish internal safeguards against foreign espionage, and share information across federal agencies. A key feature is expanded transparency: detailed disclosure of foreign gifts and contracts (including translations for non-English items) would be publicly accessible, with privacy protections for individuals. The act applies especially to institutions receiving substantial federal research funding or Title VI funds. In short, the bill significantly increases federal oversight of foreign involvement in higher education, expands public visibility into foreign influence on campuses, and provides mechanisms (via waivers and renewed review) to limit or restrict certain foreign relationships that are deemed a risk to national security or U.S. interests.
Key Points
- 1Strengthened disclosures of foreign gifts and contracts (Section 117):
- 2- Institutions must file annual disclosure reports (due July 31) when they receive gifts or contracts from foreign sources above certain thresholds (generally $50,000 for gifts/contract value, or indeterminate value), or when gifts/contracts come from a foreign country of concern or foreign entity of concern.
- 3- Reports must identify recipients, purposes, restrictions, monetary values, dates, and contract terms, with detailed requirements for both gifts and contracts. For contracts with countries/entities of concern, the original contract must be provided unredacted, along with any waivers.
- 4- If a foreign source substantially controls an institution, additional ownership/control disclosures are required.
- 5- Affiliated entities’ gifts/contracts are treated as if they were gifts/contracts of the institution itself.
- 6- Translation requirements apply to non-English materials; translations must be done by a neutral translator.
- 7Prohibition on contracts with certain foreign entities and countries (Section 117A):
- 8- Institutions may not enter into contracts with a foreign country of concern or a foreign entity of concern.
- 9- Waivers are available for one year and must cover the terms of the proposed contract; renewal waivers are possible for an additional year.
- 10- Waiver requests must include the full contract text (translated if needed) and a compliance officer’s certification that the contract benefits the institution’s mission and U.S. security/economy.
- 11- The Secretary must notify the appropriate authorizing committees prior to issuing waivers and must assess whether the contract benefits the mission and students and promotes U.S. security and economic vitality.
- 12- If a contract is designated during its term as involving a country/entity of concern, the institution must terminate within 60 days.
- 13- For pre-enactment contracts with concerns, a special waiver process applies, with potential one-year start dates and renewal options.
- 14Public database and privacy protections (Section 117, 117D):
- 15- By a specified date after enactment, the Secretary must create a searchable public database of disclosures, including key details (except information restricted from disclosure).
- 16- The database will indicate whether a disclosure involves a foreign government or non-government source, and will show relevant contract/gift details and sources.
- 17- Privacy protections for natural persons apply, with limited public disclosure of individual names/addresses, except for contracts with concerns where disclosure can occur.
- 18- The Secretary must share unredacted reports with several federal agencies within 30 days of receipt.
- 19Institutional conflicts-of-interest policy and disclosure (Section 117B):
- 20- Institutions with significant federal research funding (over $50 million in federal R&D funds in the prior five years or Title VI funds) must maintain:
- 21- A policy requiring covered individuals and affiliated entities to annually disclose gifts and contracts (including dates, values, and, for contracts, full terms).
- 22- A publicly accessible, searchable database of disclosures (excluding restricted information) with specified search/sort fields (by date, country, source, recipient department, etc.).
- 23- An effective plan to identify and manage espionage risks, including ongoing information-gathering safeguards and enforcement.
- 24- A record of the individuals making disclosures and disclosed reports for investigations.
- 25Definitions and scope (through Section 117 and related sections):
- 26- Clarifies terms such as affiliated entity, attributable country, foreign source, gift, contract, and what counts as a contract.
- 27- Establishes exemptions, e.g., certain routine tuition-related arrangements, arms-length contracts with non-concerning foreign sources, and certain IP licenses not on the Commerce Control List.
- 28Interagency information sharing:
- 29- The Secretary of Education must promptly share disclosure information (including unredacted copies) with several key federal entities, and within 90 days of enactment must transmit pre-enactment reports and investigation records to those agencies.
- 30Target institutions:
- 31- The bill targets institutions that receive substantial federal funding for R&D or Title VI funds for enhanced obligations, creating a broad reach in the higher-education sector.
Impact Areas
Primary group/area affected- Institutions of higher education, especially those with large federal research funding (R&D) or Title VI funding, as well as affiliated entities and faculty/staff who manage gifts and contracts.Secondary group/area affected- Foreign sources of gifts and contracts (including foreign governments and entities), and the federal agencies involved in oversight and enforcement (e.g., FBI, DNI, CIA, State, Defense, DOJ, Commerce, Homeland Security, Energy, NSF, NIH).Additional impacts- Increased compliance burden for universities (new reporting, translation, and recordkeeping requirements).- Greater transparency about foreign influence in higher education for the public, potentially affecting collaborations, donor relations, and research partnerships.- Potential privacy concerns for individuals, given public disclosure rules and the sharing of unredacted information with multiple agencies.- Possible deterrent effect on some international partnerships or funding arrangements due to heightened scrutiny and the waiver process.- For institutions and researchers, possible strategic considerations to avoid restricted or sensitive foreign collaborations or to align more closely with U.S. security and policy goals.
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