Require audits of institutions with respect to disclosures of foreign gifts, and for other purposes.

Summary

Requires the Department of Education to begin recurring audits of colleges’ and universities’ compliance with federal foreign gift and contract disclosure rules within 60 days of enactment and every two years thereafter, auditing at least 30 institutions each cycle and prioritizing large endowments, prior foreign funding, prior noncompliance, public reporting of contributions from certain foreign entities, and formal federal agreements. Creates two new excise taxes on institutions: a 300% tax on income received from specified “foreign countries of concern” and a 110% tax on foreign gifts or contracts found to have been not reported in required disclosures; the tax rules apply to taxable years beginning after the date 60 days after enactment.

• Department of Education must start audits of college/university foreign gift/contract disclosures within 60 days and at least every two years.
• Audits must cover the two prior reporting years and identify specific misreported gifts or contracts when noncompliance is found.
• At least 30 institutions are audited each two‑year cycle; priority targets include largest endowments, prior foreign funding, and prior noncompliance.
• New 300% excise tax on income from designated foreign countries of concern received by qualifying U.S. institutions.
• New 110% excise tax on foreign gifts or contracts that an audit finds were required but not reported; tax due within 180 days of audit notice.
• Both taxes can apply to the same funding if it meets both definitions; related‑organization rules govern attribution.
• Tax rules apply to taxable years beginning after the date 60 days post‑enactment; audits begin within 60 days.
• Audit reports must be made public online and provided to congressional leaders within 30 days of audit completion.
• Definition of key terms ties to existing statutes (Higher Education Act reporting rules and the Research and Development, Competition, and Innovation Act).