Disclose GIFT Act

This bill would require certain colleges and universities to collect, post, and keep yearly reports from their staff and faculty about gifts and contracts from foreign sources. Schools must create a clear policy and a public, searchable website for these disclosures within 90 days of the bill becoming law. Employees would file by July 31 each year for the prior calendar year. Gifts above a federal “minimal value” or of unknown value must be reported, along with contracts with foreign sources worth $5,000 or more in a year, contracts with unknown value, and all contracts (any amount) with “foreign countries of concern” or “foreign entities of concern,” including the full text of those contracts. Posted information must go online within 30 days of the school receiving the report and stay up for at least five years or until a contract ends, whichever is later .

These rules apply to schools that are eligible for federal student aid and either received over $50 million in federal research funds in any of the last five years or receive funds under Title VI. The Department will keep a public list of the countries and entities of concern and provide regular updates. Schools must name 1 to 3 compliance officers, keep a plan to guard against spying risks, and keep employee names on file for investigations or public records requests, while not posting personal details online .

If a school knowingly fails to comply, the Secretary can investigate and ask the Attorney General to go to court to force compliance. Schools ordered to comply must pay the government’s costs and face fines: at least $250,000 (or the total unreported amount) for the first violation, and at least $500,000 (or twice the unreported amount) for later violations. A school that is ordered to comply in three separate cases becomes ineligible for federal student aid programs for at least two years and must prove full compliance for two years to regain eligibility .

Key points

• Who is affected: Colleges that are eligible for federal student aid and either get large federal research funds or receive Title VI funds; their staff and faculty who receive foreign gifts or sign foreign contracts .
• What changes: Annual reporting by employees; a public, searchable website run by the school; compliance officers; a Department-maintained list of countries/entities of concern; a plan to reduce spying risks; no personal details posted online .
• When: Schools must set this up within 90 days of the law taking effect; employee reports due July 31 each year; schools post info within 30 days of receiving it; the Department gives status updates every 90 days and notifies schools within 7 days when the concern list changes .
• Penalties: Cost repayment, steep fines for violations, and possible loss of access to federal student aid programs after repeated court-ordered violations .