Republicans introduce bill to increase transparency in foreign donations to American colleges
Representatives Michelle Steele and Virginia Foxx recently introduced legislation that would slash university donation reporting thresholds from foreign countries.
'Postsecondary education in America has been compromised,' the lawmakers said, while referencing the Chinese Communist Party.
Earlier this month, Representatives Michelle Steel (R-CA) and Dr. Virginia Foxx (R-NC) introduced the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions (DETERRENT) Act.
The bill, introduced on Oct. 11, aims to bring “much-needed transparency, accountability, and clarity to foreign gift reporting requirements for colleges and universities across the nation.”
According to the DETERRENT Act fact sheet, the new legislation would cut the foreign gift reporting threshold from $250,000 to $50,000—meaning that universities would now have to report any foreign donations greater than $50,000. Additionally, donations from countries considered to be a concern would have a $0 reporting threshold.
“Adversarial countries are using America’s college campuses to undermine our nation’s interests,” a fact sheet says. “The DETERRENT Act is a crucial step towards transparency and protecting American education and students from malicious foreign influence.”
The bill would also implement consequences for universities that refuse to comply with the proposed regulations for foreign gift reporting, one being a loss of federal Title IV funding.
Universities receiving foreign donations would be required to file and submit a full disclosure report annually on July 1. In addition, gifts or contracts with foreign countries will include government name, division or department, and the physical mailing address of the agency.
The lawmakers stated that, “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 also said that the DETERRENT Act is their way of unleashing “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.”
Earlier this month, Campus Reform reported that Ivy League universities were among the top recipients of funding from Arab countries—which amounted to nearly $8.5 billion from 1986-2021.
Campus Reform contacted Representatives Michelle Steel and Virginia Foxx for comment. This article will be updated accordingly.
