North Charlotte Today

Senators Thom Tillis and Bill Cassidy have introduced the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions (DETERRENT) Act to address foreign gift reporting requirements in American postsecondary institutions. The aim of the legislation is to increase transparency and accountability regarding foreign gifts received by U.S. colleges and universities.

Joining Senators Tillis and Cassidy in this legislative effort are Senators Marsha Blackburn, Shelley Moore Capito, John Cornyn, Joni Ernst, Chuck Grassley, Cynthia Lummis, Rick Scott, Pete Ricketts, Jim Risch, and Eric Schmitt.

“America’s foreign adversaries, including the Chinese Communist Party, are targeting our nation’s students by stealing research, spewing anti-American propaganda, and censoring free speech by providing American academic institutions with lucrative funding opportunities,” noted Senator Tillis. He emphasized that institutions often fail to report these gifts, leaving adversaries with unchecked influence over U.S. academic institutions. Tillis urged the Senate to act swiftly on this legislation.

Senator Cassidy remarked, “The DETERRENT Act brings important transparency and ensures our universities are not susceptible to foreign influence.” He stressed that if adversaries are leveraging these gifts to penetrate campuses, Americans need to be aware.

The legislation proposes several key measures, including:

- Lowering the foreign gift reporting threshold for institutions from $250,000 to $50,000, with a stricter $0 threshold for countries designated as concerning.

- Closing existing reporting loopholes and increasing transparency for Congress, intelligence agencies, and the public.

- Mandating disclosure of foreign gifts to individual staff and faculty at research-intensive colleges to protect those most at risk.

- Holding large private institutions accountable for financial ties through detailed reporting on concerning foreign investments in their endowments.

- Introducing repercussions for noncompliance, such as fines and the potential loss of Title IV funding.

Currently, foreign funding reporting by educational institutions is governed under Section 117 of the Higher Education Act. However, it has been identified that the law's ambiguity and enforcement gaps have led to significant unchecked foreign influences on campuses. A 2019 Senate report indicated that up to 70% of such institutions failed to meet compliance with Section 117 requirements.

The full text and a one-pager of the legislation are available for review.