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

This proposal targets foreign funding at U.S. colleges and universities. It would add a 300% tax on money they receive from any “foreign country of concern,” and it applies to schools with at least 500 tuition-paying students, most of whom are in the U.S. It also counts money routed through related organizations. The bill would add a separate 110% tax on any foreign gifts or contracts a school failed to report under existing federal disclosure rules. That tax is due within 180 days after the school is told the results of an audit. If those unreported funds came from a “foreign country of concern,” the 110% tax is on top of the 300% tax. The term “foreign country of concern” uses an existing definition and isn’t listed here .

Key points

• Who is affected: U.S.-based colleges and universities with 500+ tuition-paying students and more than half of students in the U.S.
• What changes: 300% tax on money from foreign countries of concern; 110% tax on unreported foreign funding; both can apply; includes funds through related organizations; 110% tax due within 180 days after audit notice
• When it applies: For the relevant tax year; the 110% tax is due 180 days after an audit notice