Text of Senate Amendment 6448

Quick facts

Record: Senate Floor
Section type: Amendments
Chamber: Senate
Date: June 24, 2026
Congress: 119th Congress
Why this source matters: This section came from the Senate floor portion of the record.

Readable version of the official text

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;

“(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;

“(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;

“(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;

“(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).”.

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—

“(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

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;

“(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

“(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.”.

(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).

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