S. 1738: Securing Academia from Foreign Entanglements Act

The proposed legislation, known as the Securing Academia from Foreign Entanglements Act, aims to amend the Higher Education Act of 1965 by establishing rules regarding financial interactions between institutions of higher education and specific foreign entities. Below are the key components of the bill:

Prohibitions on Foreign Gifts

The bill would prohibit institutions of higher education from receiving any gifts or entering into contracts with foreign countries that are classified as "foreign countries of concern." This designation includes:

• Countries that are identified as covered nations under U.S. law.
• Any country designated by the U.S. Secretary of Defense, Secretary of State, and Director of National Intelligence as being involved in actions harmful to U.S. national security or foreign policy.

Definition of Key Terms

The bill defines several terms essential for understanding its provisions:

• Contract: The term is defined as per Section 117 of the Higher Education Act.
• Foreign country of concern: Includes countries as mentioned above.
• Gift: Also defined according to Section 117.
• Institution: Defined in accordance with Section 117.

Exemptions

Importantly, the bill clarifies that it does not impact the abilities of institutions to charge or collect tuition, room and board, fees, or any other costs associated with attendance. This means that normal financial transactions related to student education are not restricted under this legislation.

Disclosure Requirements

The bill also amends existing laws related to disclosures of foreign gifts to require that gifts from foreign countries of concern are explicitly excluded from those disclosures, reinforcing the restrictions on financial connections with these countries.

Implementation and Oversight

While the bill details the prohibitions and definitions, it does not outline specific enforcement mechanisms or penalties within the text provided. Implementation would likely fall to the institutions themselves to comply with these new requirements.

Considerations for Institutions

Institutions would need to review their existing financial relationships and contracts with foreign entities to ensure compliance with the new restrictions if the bill is enacted. This could impact the funding sources and international collaborations many universities currently engage in.

Relevant Companies

• BA (Boeing): As a major defense contractor that collaborates with various universities for research, any restrictions on partnerships could impact funding and research opportunities.
• NOC (Northrop Grumman): Similar to Boeing, it may face challenges in maintaining agreements with educational institutions for research that could involve funding from countries affected by this bill.
• RTN (Raytheon): As a defense industry player, Raytheon could see consequences related to educational collaborations and funding linked to research and development projects in partnership with universities.