((a)) ** Confucius Institute defined** In this section the term “Confucius Institute” means a cultural institute established as a partnership between a United States institution of higher education and a Chinese institution of higher education to promote and teach Chinese language and culture that is funded, directly or indirectly, by the Government of the People’s Republic of China.
((b)) ** Restrictions of Confucius Institutes** Except as provided in subsection (d), none of the funds made available to the Foundation under this division or division A, or an amendment made by this division or division A, may be obligated or expended to an institution of higher education that maintains a contract or agreement between the institution and a Confucius Institute, unless the Director, after consultation with the National Academies, determines such a waiver is appropriate in accordance with subsection (c).
((c)) ** Waiver** The Director, after consultation with the National Academies, may issue a waiver for an institution of higher education that maintains a contract or agreement between the institution and a Confucius Institute if such contract or agreement includes clear provisions that—
((1)) protect academic freedom at the institution;
((2)) prohibit the application of any foreign law on any campus of the institution;
((3)) grant full managerial authority of the Confucius Institute to the institution, including full control over what is being taught, the activities carried out, the research awards that are made, and who is employed at the Confucius Institute; and
((4)) prohibit co-location with the institution’s Chinese language, history, and cultural programs and require separate promotional materials.
((d)) ** Special rule**
((1)) ** In general** Notwithstanding any other provision of this section, this section shall not apply to an institution of higher education if that institution has fulfilled the requirements for a waiver from the Department of Defense as described under section 1062 of the National Defense Authorization Act for Fiscal Year 2021 ().Public Law 116–283
((2)) ** Exception** Notwithstanding any other provision of this section, the prohibition under subsection (b) shall not apply to amounts provided to students as educational assistance.
((e)) ** Effective date** The limitation under subsection (b) shall apply with respect to the first fiscal year that begins after the date that is two years after , and to any subsequent fiscal year subject to subsection (f).August 9, 20222022-08-09
((f)) ** Sunset** This section shall cease to be effective on the date that is five years after .August 9, 20222022-08-09