# Understanding the DETERRENT Act: What Colleges Must Disclose About Foreign Money

This bill requires colleges and universities to be much more transparent about money and deals they receive from foreign sources. Right now, schools have some reporting requirements, but this law significantly expands what they must disclose and who gets to see that information.

Here's what changes: Any college that receives a gift worth $50,000 or more from a foreign source—or enters into a contract with a foreign entity—must now file detailed reports with the federal government. These reports need to include who the foreign source is, what the money is for, any conditions attached to it, and specific details about the arrangement. The reports must be filed by July 1st each year for anything received the previous calendar year. The government will then put most of this information into a searchable public database that anyone can access online, so students, parents, and the public can see what foreign money is flowing into their schools.

The bill also creates special restrictions for colleges dealing with countries or entities deemed "of concern" by the government. Schools can't enter into contracts with these sources without getting a waiver from the federal government, and if they do get a waiver, they must disclose the complete, unredacted contract. Additionally, colleges must designate a compliance officer who personally certifies that the school is following all these new rules. The government will share the detailed reports (including names and addresses of foreign sources) with agencies like the FBI, CIA, and National Intelligence Director to help with national security investigations.

DETERRENT Act

Steel, Michelle

Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act or the DETERRENT Act This bill expands oversight and disclosure requirements related to foreign sources and institutions of higher education (IHEs). Specifically, the bill requires an IHE to annually disclose to the Department of Education (ED) any year in which the IHE <ul> <li>receives a gift from a foreign country of concern (e.g., China or Russia) or foreign entity of concern of any dollar amount; </li> <li>receives a gift or contract from a foreign source (other than a foreign country of concern or foreign entity of concern) that is valued at $50,000 or more, considered alone or in combination with all other gifts or contracts within a calendar year (current disclosure threshold is $250,000 or more), or which has an undetermined monetary value; </li> <li>enters into a contract with a foreign country of concern or foreign entity of concern after receiving a waiver for such contract; or </li> <li>is substantially controlled by a foreign source. </li> </ul> Additionally, the bill <ul> <li>prohibits IHEs from entering into contracts with a foreign country of concern or with a foreign entity of concern without obtaining a waiver, </li> <li>requires certain IHEs to disclose gifts or contracts between faculty members and foreign sources, and </li> <li>requires private IHEs with specified assets or investments to file annual investment disclosure reports. </li> </ul> The bill authorizes ED to investigate possible violations of this bill and outlines the various penalties for each violation.