H.R. 1048: Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act

The "Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act" (DETERRENT Act) is legislation aimed at increasing transparency and oversight regarding foreign financial influences in higher education in the United States. The key elements of the bill include:

Enhanced Disclosure Regulations

The bill mandates that higher education institutions report gifts and contracts from foreign entities. This reporting must occur within 30 days of receiving the gift or entering the contract. The aim is to ensure that these transactions are publicly available and can be monitored for any potential undue foreign influence.

Prohibition of Certain Contracts

The legislation prohibits higher education institutions from entering contracts with specified foreign entities deemed to be engaging in nefarious activities. This provision seeks to protect U.S. institutions from foreign influence that could undermine educational integrity or national security.

Establishment of a Searchable Database

A significant part of the bill is the creation of a searchable database that will hold all reported gifts and contracts. This database will allow the public and relevant authorities to easily access information about foreign financial contributions to universities and other educational institutions.

Definitions and Compliance Requirements

The DETERRENT Act provides clear definitions regarding terms such as "investment of concern," which will help institutions understand their compliance obligations. Institutions will be required to have systems in place to ensure they are compliant with the new regulations.

Enforcement and Penalties

The bill outlines enforcement mechanisms, including civil penalties for institutions that fail to comply with the disclosure requirements. Additionally, a single point-of-contact will be established to assist institutions in meeting these compliance requirements and to facilitate technical improvements in the reporting process.

Public Reports

Institutions will also be required to prepare public reports summarizing the foreign gifts and contracts they receive. This measure is designed to increase accountability and transparency about foreign financial support in the education sector.

Summary

Overall, the DETERRENT Act seeks to increase transparency around foreign funding in U.S. higher education, eliminate risks associated with contracts with foreign entities that may pose a threat, and ensure accountability through a formal reporting system and penalties for noncompliance.

Relevant Companies

None found