H.R. 1018: Instructing Noteworthy Steps toward Transparency to Rout and Undo Calamitous Transactions Act of 2025

The bill named the "Instructing Noteworthy Steps toward Transparency to Rout and Undo Calamitous Transactions Act of 2025" (or the "INSTRUCT Act of 2025") proposes to amend the Higher Education Act of 1965 in order to enhance the transparency and reporting requirements related to foreign sources of funding in educational institutions in the United States.

Key Provisions of the Bill

1. Public Disclosure of Foreign Gifts and Contracts

The bill mandates that all reports concerning foreign gifts or contracts received by educational institutions must be publicly accessible. This means that anyone can inspect and copy these reports during standard business hours.

2. Interagency Information Sharing

The legislation requires that once an educational institution submits its disclosure reports, the Secretary of Education must send unredacted copies of these reports to a list of high-ranking U.S. officials and agency heads. This list includes:

• Director of the Federal Bureau of Investigation
• Director of National Intelligence
• Director of the Central Intelligence Agency
• Secretary of State
• Secretary of Defense
• Attorney General
• Secretary of Commerce
• Secretary of Homeland Security
• Secretary of Energy
• Director of the National Science Foundation
• Director of the National Institutes of Health

This provision aims to enhance cooperation and information flow among agencies on issues related to foreign funding in educational contexts.

3. Comprehensive Review and Reporting

Within 180 days after the bill's enactment, the Comptroller General of the United States is required to conduct a study aimed at identifying ways to improve coordination and compliance concerning the reporting of foreign gifts and contracts. The study is meant to evaluate:

• Methods for increasing information sharing among agencies
• Strategies to improve compliance rates with disclosure requirements
• Establishing processes for enforcing compliance with these disclosures

A report on the findings from this study must be submitted to Congress and made public within three years following the bill's enactment.

Impact of the Bill

By instituting these changes, the bill seeks to increase transparency in how foreign funding is received and reported by educational institutions in the U.S. It places a significant responsibility on educational leaders to ensure that all disclosures are made available to the public and are shared among key government officials. This could lead to greater scrutiny of educational institutions that receive foreign funding, with an emphasis on transparency and national security considerations.

Relevant Companies

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