Republican North Carolina Rep. Virginia Foxx and Republican California Rep. Michelle Steel introduced legislation Wednesday that would bring more transparency and accountability to foreign gift reporting requirements for colleges and universities across the U.S.
The Daily Caller first obtained a copy of the bill, which entitled the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions (DETERRENT) Act. The legislation would specifically cut the foreign gift reporting threshold for colleges and universities from $250,000 down to $50,000, with an even stricter $0 threshold for countries of concern.
Section 117 of the Higher Education Act of 1965 requires universities to disclose semiannually to the Department of Education any gifts received from and contracts with a foreign source that are valued at $250,000 or more.
The bill would also close reporting loopholes and provide transparency to Congress, intelligence agencies and the public. It would require the disclosure of foreign gifts to individual staff and faculty at research-heavy institutions in order to protect those targeted the most by the U.S.’ foreign adversaries.
In May, it was reported the University of Pennsylvania (UPenn) had received millions of dollars from Chinese donors with ties to Hunter Biden. Chinese donors allegedly donated millions to UPenn — where Joe Biden created the Penn Biden Center for Diplomacy and Global Engagement — between 2018 and 2020. UC Berkeley allegedly failed to disclose $220 million in Chinese state funding for a joint tech venture, according to another report.
“Postsecondary education in America has been compromised. Malignant foreign entities, like the Chinese Communist Party, have taken root at colleges and universities by simply flashing their checkbooks and opening the floodgates to an endless stream of cash – every dollar comes with strings attached,” the lawmakers said in a joint statement to the Caller before introducing the bill. (RELATED: EXCLUSIVE: J.D. Vance, Republican Senators Introduce Legislation To Crack Down On CCP Influence At US Universities)
READ THE LEGISLATION HERE:
(DAILY CALLER OBTAINED) — … by Henry Rodgers
“The DETERRENT Act is our prescription to unleash accountability, transparency, and much-needed clarity into a system that has allowed foreign actors to entice well-meaning institutions and boldly partner with other shameless institutions to work against the interests of the American people. By erecting this bulwark, we are bringing bad actors directly into blinding sunlight while holding colleges and universities accountable. Covert attempts to influence postsecondary education in America will no longer be obscured by the shadows,” they added. (RELATED: EXCLUSIVE: Rep. Gooden Calls For Investigation Into Foreign Donations, Gifts Contributed To Penn Biden Center)
The legislation would also hold the U.S.’ largest private institutions accountable for their financial partnerships by revealing any foreign investments in their endowments that could be of concern. If the legislation is passed, there will be fines implemented and other punishments if colleges and universities refuse to comply with reporting foreign gifts.