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HR 542119th CongressIn Committee

No Foreign Gifts Act of 2025

Introduced: Jan 16, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

The No Foreign Gifts Act of 2025 would amend the Higher Education Act of 1965 to bar colleges and universities that receive federal funds from accepting gifts from certain countries. Specifically, an institution may not receive a gift from (1) any country that, as of enactment, has provided material support to a foreign terrorist organization (as determined by the Secretary of State) and (2) China, Russia, North Korea, or Iran. To stay eligible for federal funds under the Act, institutions must report every offer of a gift from such countries to the Secretary of Education. The bill defines “material support” by reference to 18 U.S.C. 2339A(b) and “foreign terrorist organization” by designation under the Immigration and Nationality Act (INA) section 219. In short, the bill creates a federal prohibition on gifts from specified states and requires a reporting process to maintain eligibility for federal education funding. It would add a new section (117A) to the Higher Education Act and impose a compliance obligation on recipient institutions.

Key Points

  • 1Prohibition on gifts from certain countries: Beginning on enactment, institutions that receive funds under the Higher Education Act may not receive a gift from (a) any country that has provided material support to a foreign terrorist organization (per Secretary of State determination) or (b) China, Russia, North Korea, or Iran.
  • 2Reporting requirement to remain eligible: For every offered gift from a country described above, the institution must report the offer to the Secretary of Education to continue receiving funds.
  • 3Definitions tied to federal law: “Material support” aligns with the definition in 18 U.S.C. 2339A(b); “foreign terrorist organization” is the designation established by the Secretary of State under INA 219 (8 U.S.C. 1189).
  • 4Placement and scope: The prohibition is inserted as a new Section 117A in the Higher Education Act, applying to institutions that receive funds under the Act.
  • 5Enforcement/eligibility implication: Noncompliance would jeopardize an institution’s eligibility to receive federal HEA funds; the bill does not specify penalties beyond loss of eligibility, but institutional funding would be at risk if gifts are accepted.

Impact Areas

Primary: Institutions of higher education that receive funds under the Higher Education Act. They would need to implement policies to ensure they do not accept gifts from prohibited countries and establish reporting procedures for any gift offers.Secondary: Foreign donors and governments who might have previously gifted to U.S. colleges; international philanthropy and collaboration could be affected, potentially reducing overseas gifts to U.S. universities.Additional impacts: Administrative and compliance burden for universities (policies, training, reporting mechanisms); potential chilling effect on fundraising and collaboration with international partners; risk assessment and internal controls to avoid inadvertent acceptance of prohibited gifts.
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