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119-hr-3284119th CongressWALLET

To require audits of institutions with respect to disclosures of foreign gifts, and for other purposes.

Sponsored By: Representative Gill, Brandon [R-TX-26]

Introduced

Summary

Tightened federal audits of foreign gifts to colleges. This bill would require the Department of Education to conduct audits of institutions’ disclosures about foreign gifts and contracts to check accuracy and public reporting.

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  • Colleges and universities would face targeted compliance reviews that check reporting for the two reporting years before each audit. Audits must list any underreported or overreported gifts or contracts and include amounts, foreign source, country of origin, and receipt or contract dates.
  • Large and previously connected institutions would be prioritized for review. The Department would focus on schools in the top 1 percent by endowment, those with prior substantial foreign gifts or contracts, previously noncompliant institutions, schools reporting contributions from a “foreign entity of concern,” and institutions with formal federal agreements.
  • Congress and the public would get faster access to results. The Department must submit audit reports to specified congressional leaders and committees and post them on the Department website within 30 days after each audit is completed.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Regular audits of college foreign funds

This bill would require the Education Department to audit at least 30 schools every two years. Audits would start within 60 days of enactment and look at the two prior reporting years. The Department would focus on very large endowments, schools with past foreign funding issues or noncompliance, schools tied to countries of concern, and schools with federal agreements. If a school falls short, the audit would list each gift or contract, amounts, the source country, and dates. The Secretary would report results to Congress within 30 days and post them online.

New taxes on college foreign funding

This bill would add two excise taxes on colleges and universities. First, certain schools would owe a tax equal to 300% of income they get from any “foreign country of concern.” It would apply to eligible schools with at least 500 tuition-paying students and with most students in the U.S. Second, any foreign gifts or contracts that an audit finds were not reported would be taxed at 110% of the unreported amount. That penalty would be due within 180 days after the audit notice, and would be on top of the 300% tax if the money came from a country of concern. These taxes would start for tax years beginning after 60 days from enactment.

Sponsors & CoSponsors

Sponsor

Gill, Brandon [R-TX-26]

TX • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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