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119-hr-938119th CongressWALLET

No Contracts with Foreign Adversaries Act

Sponsored By: Representative Harris, Mark [R-NC-8]

Introduced

Summary

Blocks college contracts with foreign adversaries. This bill would bar institutions of higher education from entering contracts with a foreign country of concern or a foreign entity of concern.

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  • Colleges must appoint a compliance officer and make specified contract disclosures to Congress, including a transitional waiver path for contracts signed before enactment.
  • Waivers and penalties: Institutions could request 1-year waivers with renewal options, but repeated violations would bar future waivers and impose monetary fines tied to the institution's federal funding.
  • Enforcement and program access: The Education Secretary and the Attorney General could investigate and bring civil actions. Three consecutive years of violations could make an institution ineligible for Department of Education programs for at least 2 fiscal years and require 2 years of demonstrated compliance to regain eligibility.

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Bill Overview

Analyzed Economic Effects

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

Loss of federal student aid access

If enacted, the bill would add a rule tying school eligibility for Title-authorized federal student aid to compliance with the new contract rules. A school that violates any requirement for three institutional fiscal years in a row would lose eligibility for federal student aid programs for at least two institutional fiscal years. To get aid eligibility back, the school would have to show full compliance for at least two institutional fiscal years after the year it became ineligible. Students enrolled at a school during its ineligibility period could lose access to federal loans and grants.

Fines and legal costs for violations

If enacted, the Department would investigate possible violations and could ask the Attorney General to sue to force compliance. Schools that knowingly or willfully break the rules could face fines tied to their federal funds under this Act for the most recent fiscal year. A first knowing or willful violation would carry a fine between 5% and 10% of that federal amount. Each later knowing or willful violation would carry a fine of at least 20% of that amount. A school forced by a court to comply would also pay the full U.S. costs to obtain compliance. A school fined under the first standard that then breaks the rules in two more years could be barred from getting a waiver.

Ban and waiver for foreign contracts

If enacted, this bill would bar colleges from signing contracts with countries or entities labeled a foreign country or entity of concern. "Contract" would be defined broadly to include purchases, leases, and affiliations that use a school's name, time, services, or resources. Schools with contracts before enactment would have to request a transitional waiver within 30 days. Waivers would last one year, cover only the exact terms submitted, and require full contract disclosure and a compliance officer who certifies compliance. Non-English contract parts would need an English translation by someone not tied to the foreign source. If a source is later designated as a concern, the school would have to end the contract within 60 days of notice.

Sponsors & CoSponsors

Sponsor

Harris, Mark [R-NC-8]

NC • R

Cosponsors

  • Rep. Owens, Burgess [R-UT-4]

    UT • R

    Sponsored 2/4/2025

Roll Call Votes

No roll call votes available for this bill.

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