Bill > S1684

This bill establishes new requirements for auditing and taxing foreign gifts to higher education institutions. The Department of Education must conduct audits of at least 30 institutions every two years, prioritizing those with large endowments, previous foreign funding, noncompliance history, or connections to foreign entities of concern. These audits will assess compliance with existing foreign gift reporting requirements, examining gifts and contracts from foreign sources over the previous two reporting years. The Secretary of Education must submit a detailed report to Congress and make it publicly available within 30 days of completing each audit. Additionally, the bill introduces two new excise taxes: a 300% tax on income received from "foreign countries of concern" for institutions with at least 500 tuition-paying students, and a 110% tax on unreported foreign funding discovered during these audits. The term "foreign country of concern" is defined by referencing existing legislation about research and development. These provisions aim to increase transparency and accountability regarding foreign financial contributions to higher education institutions, with particular focus on potential national security or economic risks associated with foreign funding sources.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1684/all-info