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

Summary

Requires the Department of Education to begin auditing colleges’ compliance with foreign-gift reporting within 60 days and then every two years, auditing at least 30 institutions each cycle and prioritizing institutions with large endowments, prior foreign funding, prior noncompliance, or formal federal agreements. Creates two new tax rules that impose heavy excise taxes on qualifying colleges that receive funds from designated foreign countries and on colleges that fail to report required foreign gifts or contracts, with taxes due quickly after audit findings and applying to taxable years beginning more than 60 days after enactment.

• Department of Education must begin foreign-gift compliance audits within 60 days and then every two years, auditing at least 30 institutions per cycle.
• Audits must prioritize institutions with large endowments, prior foreign funding, prior noncompliance, public ties to foreign entities of concern, or formal federal agreements.
• Audit reviews cover the two previous reporting years and must identify under‑ or over‑reported foreign gifts/contracts with source, country, amounts, and dates.
• New excise tax (300%) on qualifying colleges' income from designated foreign countries of concern.
• New excise tax (110%) on foreign gifts/contracts found to be unreported by audit; tax due within 180 days of notification.
• Funds from a foreign country of concern may be subject to both the 300% and the 110% taxes.
• Tax changes take effect for taxable years beginning after 60 days following enactment.
• Audit reports must be delivered to Congress, made available to Members on request, and posted publicly within 30 days of audit completion.
• Applies only to institutions that meet statutory eligibility thresholds (e.g., student-count and location tests for the tax provisions).