House Passes DETERRENT Act
On Dec. 6, H.R. 5933, the Defending Education Transparency and Ending Rogue Regimes
Engaging in Nefarious Transactions (DETERRENT) Act passed the U.S.
House of Representatives by a 246 to 170 vote, with 17 members being no-votes
and 215 Republicans and 31 Democrats voting in favor of the bill.
The bill previously passed out of the House’s Education and
Workforce Committee by a bipartisan 27 to 11 vote. The bill, introduced by U.S.
Rep. Michelle Steel (R-CA), strikes and replaces the existing Section 117, which
requires institutions to submit biannual reports for gifts or contracts above
$250,000. The new Section 117 created by the bill requires institutions to file
reports annually on July 1 for gifts or contracts above $50,000. The amount of
information now required in the reports has also significantly increased. The
Department of Education (ED) will now be required to establish and maintain a
searchable, public database on its website of the reports submitted.
Additionally, the bill prohibits institutions from entering
into contracts with a foreign country of concern or with a foreign entity of concern
without obtaining a waiver, requires certain institutions to disclose gifts or
contracts between covered individuals (e.g., researchers) and foreign sources,
and requires private institutions with specified assets or investments to file
annual investment disclosure reports. A floor amendment introduced by U.S. Rep.
Marcus Molinaro (R-NY) requires that foreign entities disclose any ties to designated
foreign terrorist organizations, which includes Hamas.
The bill establishes harsher punishments for violations of
Section 117, including the imposition of fines, some of which can range from 5%
to 10% of the total amount of federal funds received by the institution. The fines
are in addition to paying for all costs associated with the investigation and
enforcement of Section 117, which was previously included in the statute.
