H.R. 3284

119th CONGRESS 1st Session

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

IN THE HOUSE OF REPRESENTATIVES · May 8, 2025 · Sponsor: Mr. Gill of Texas

Sec. 4969. Excise tax on contributions to colleges and universities by foreign countries of concern.

(a) Tax imposed
- There is hereby imposed on each applicable institution for the taxable year a tax equal to 300 percent of the income of such institution received from any foreign country of concern during the taxable year.
(b) Applicable institution
- For purposes of this section, the term applicable institution means an eligible educational institution (as defined in section 25A(f)(2))—
  - which had at least 500 tuition-paying students during the preceding taxable year, and
  - more than 50 percent of the tuition-paying students of which are located in the United States,
- determined according to the rules of section 4968(b)(2).
(c) Foreign country of concern
- For purposes of this section, the term foreign country of concern has the meaning given such term by section 10612(a) of the Research and Development, Competition, and Innovation Act.
(d) Related organizations
- Rules similar to the rules of section 4968(d) shall apply in determining income of an applicable institution for purposes of this section.

(a) Tax imposed
- There is hereby imposed on each institution for the taxable year a tax equal to 110 percent of the unreported foreign funding received by such institution during the taxable year.
- Tax imposed
(b) Unreported foreign funding
- For purposes of this section, the term unreported foreign funding means an amount equal to the value of any gift or contract, or any amount received pursuant to a change in ownership or control, required to be reported under section 117 of the Higher Education Act of 1965 which is determined not to have been so reported by an audit under subsection (g) of such section.
(c) Timing of tax
- The tax imposed by subsection (a) shall be due not later than 180 days after the institution is notified of the results of the audit under section 117(g) of the Higher Education Act of 1965.
(d) Coordination with section 4969
- In the case of any unreported foreign funding which is received from a foreign country of concern (as defined in section 4969(c)), the tax imposed by subsection (a) shall be in addition to any tax imposed by section 4969 on such funding.
(e) Institution; other terms
- For purposes of this section, the term , and any other term used in this section which is used in section 117 of the Higher Education Act of 1965, has the same meaning as when used in such section. institution