In a bid to enhance transparency and accountability in foreign gift reporting for American colleges and universities, Republican Representatives Virginia Foxx of Virginia and Michelle Steel of California introduced a bill on Wednesday.
The Daily Caller was the first to obtain a copy of the proposed legislation, dubbed the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions (DETERRENT) Act.
The DETERRENT Act aims to significantly reduce the foreign gift reporting threshold for educational institutions from the current $250,000 to $50,000. For countries deemed concerning, the threshold would be set at a stringent $0.
This is a modification of Section 117 of the Higher Education Act of 1965, which mandates universities to disclose biannually any gifts or contracts from foreign sources valued at $250,000 or more to the Department of Education.
The proposed legislation also seeks to eliminate reporting loopholes, thereby providing greater transparency to Congress, intelligence agencies, and the public. It stipulates the disclosure of foreign gifts to individual staff and faculty at research-intensive institutions, a measure designed to safeguard those most vulnerable to the influence of foreign adversaries.
The introduction of the DETERRENT Act comes in the wake of reports that the University of Pennsylvania (UPenn) received substantial donations from Chinese donors linked to Hunter Biden. Allegedly, these donors contributed millions to UPenn, where Joe Biden established the Penn Biden Center for Diplomacy and Global Engagement, between 2018 and 2020. Additionally, UC Berkeley reportedly failed to disclose $220 million in funding from the Chinese state for a joint tech venture.
The lawmakers issued a joint statement to the Caller prior to introducing the bill, stating, "Postsecondary education in America has been compromised. Malignant foreign entities, like the Chinese Communist Party, have taken root at colleges and universities by simply flashing their checkbooks and opening the floodgates to an endless stream of cash every dollar comes with strings attached."
They further elaborated on the DETERRENT Act, saying, "This is our prescription to unleash accountability, transparency, and much-needed clarity into a system that has allowed foreign actors to entice well-meaning institutions and boldly partner with other shameless institutions to work against the interests of the American people. By erecting this bulwark, we are bringing bad actors directly into blinding sunlight while holding colleges and universities accountable. Covert attempts to influence postsecondary education in America will no longer be obscured by the shadows."
The legislation also aims to hold the country's largest private institutions accountable for their financial partnerships by disclosing any foreign investments in their endowments that could raise concerns.
If passed, the legislation will impose fines and other penalties on colleges and universities that fail to comply with the foreign gift reporting requirements.
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