Be it enacted by the Legislature:   

Section 1. Short Title.  

This article may be cited as the “Foreign Influence Operations Out of American Education Act.”  

 Section 2: Legislative Findings.  

The Legislature finds:  

WHEREAS, educational institutions play a vital role in research, national competitiveness, development of future leaders, nurturing core American liberties, and should be catalysts of strengthening ties with American allies who share our democratic values rather than adversaries who exploit them.   

WHEREAS, Section 117 of the 1965 Higher Education Act requires American universities to report all foreign gifts, yet a 2020 Department of Education investigation found that “Section 117 reporting is systematically under inclusive and inaccurate.”   

WHEREAS, President Donald Trump issued an Executive Order entitled “Transparency Regarding Foreign Influence At American Universities” (April 23, 2025) directing the Secretary of Education and the Attorney General to robustly enforce that American education institutions comply with Section 117.   

WHEREAS, the United States Department of Education maintains a Section 117 Foreign Gift and Contract Public Transparency Dashboard that demonstrates that U.S. colleges have received over $72.1 billion in reportable foreign gifts and contracts. Some countries and foreign principals have likely routed donations through offshore accounts.   

WHEREAS, the United States Secretary of Education said this dashboard includes “funding from countries and entities that are involved in activities that threaten America’s national security” and observed that “this financial infiltration enabled foreign governments to steal taxpayer-funded intellectual property and reshape how our elite campuses teach about Israel and the Middle East.”   

WHEREAS, some foreign governments, including affiliated entities like the Confucius Institute and Muslim Brotherhood branches, have used partnerships, research sponsorships, student clubs, and other campus efforts, to exert ideological influence or intelligence collection.   

WHEREAS, in 2020 Stanford University signed a $1.65 million contract with an undisclosed Russian entity that was subsequently terminated for unidentified reasons, and Russia has donated over $178 million to American universities, including $134 million to MIT.   

WHEREAS, in 2015 Columbia University shuttered its Chinese Students and Scholars Association (CSSA) chapter due to concerns of China influence operations. Between 2009-2023 over 140 school districts in 30 states received over $17 million tied to the Chinese Government via Confucius classroom agreements requiring classes in Chinese language and culture with teachers approved by the Chinese Government, and China/Hong Kong has donated over $6.8 billion to American universities, including $76 million to Harvard, $67 million to New York University, and $36 million to Stanford in 2025, and $72 million to MIT in 2026.   

WHEREAS, American universities have accepted $8.8 billion from Qatar, $4.4 billion from Saudi Arabia, $1.9 billion from the United Arab Emirates, and $1.4 billion from Kuwait, not including gifts through offshore accounts. Though America has strategic relationships with these Persian Gulf monarchies, including US army bases, some of these same countries promote anti-American attitudes in their state-controlled media, lobbying, and education funding.   

WHEREAS, Qatar funded K-12 teacher training in Georgia on how to incorporate controversial social justice topics into curriculum over parents’ objections as well as a film that sympathetically portrays suicide bombings, required students and faculty at Northwestern University’s Doha campus comply with Qatari penal code prohibitions limiting free expression, and mandated Carnegie Mellon University “consult” with the Qatar Foundation before hiring a Vice Provost for DEI as part of its more than $2.7 billion in donations to the school. In a recent opinion in a case involving allegations Carnegie Mellon failed to protect Jewish students from harassment and discrimination, the federal court judge noted that “Qatar and its affiliates could be a source of antisemitic influence upon Carnegie Mellon” and the “reliance on such funds serves to motivate Carnegie Mellon to abide by expectations and wishes of its generous donors.”   

WHEREAS, the TRACE act has been introduced in Congress as no federal or state law currently requires elementary and secondary schools to disclose when they receive foreign funding.   

WHEREAS, campus safety and intellectual freedom are at risk when foreign countries require certain curriculum, faculty, and conduct in gift agreements, when some faculty and administrators turn a blind eye to protests that restrict access to campus facilities to students with certain identities and views, and when campus informants send reports to foreign security agencies.   

WHEREAS, the state has a compelling interest to protect academic independence, research, and intellectual property.  

WHEREAS, prohibiting direct or indirect funding or contractual benefits from designated foreign adversaries and countries involved in foreign influence operations is necessary to protect the sovereignty and interests of the State.     

Section 3. Definitions.                                                    

As used in this article, unless otherwise indicated:  

1. “Institutions of public education” shall mean any school from kindergarten through university that receives funding from the state. 
2. “Affiliate organization” shall mean any foundation (including a 501(c)3 institutional foundation), research institute, direct-support organization, or contracting entity formed for the benefit of an institution of public education. 
3. “Foreign adversary nation” shall mean the government of any country, nation, or group of nations, or any province or other political subdivision of any country or nation, including any agent of such foreign government listed on 15 CFR 791.4 (Determination of foreign adversaries) by U.S. Department of Commerce. 
4. “Foreign nations funding American public schools” shall be defined as those countries that have given over $1 billion, including through offshore bank accounts, to American Universities as identified on the United States Department of Education Section 117 Foreign Gift and Contract Public Transparency Dashboard as listed on January 1 of each year. 
5. “Foreign principal(s)” shall mean any person or entity residing in or acting directly or indirectly on behalf of a foreign country, including through a subsidiary, nonprofit, or front organization. Examples include government-backed entities like the Confucius Institute and Muslim Brotherhood affiliated organizations. 
6. “Foreign terrorist organization” shall mean any entity designated by the U.S. State Department under Section 219 of the Immigration and Nationality Act (8 U.S.C. § 1189) or as a Specially Designated Global Terrorists by the US Department of Treasury, pursuant to EO 13224. 
7. “Gift” shall mean any gift, grant, contract, research sponsorship, endowment, award, program agreement, formal partnership, donation of money or property of any kind, or any combination thereof, including a conditional or unconditional pledge of such gift, endowment, award, or donation. For purposes of this definition, the term “pledge” shall mean a promise, an agreement, or an expressed intention to give a gift. 
8. “Knowingly” means having actual knowledge or acting with reckless disregard. 

 Section 4. Prohibition on Acceptance of Funding and Contracts.     

1. No institution of public education, nor their personnel or any affiliate organization, shall solicit or accept a gift from or travel professionally to a foreign adversary nation, a foreign principal of said country, or a foreign terrorist organization. 
2. Indirect receipt, including via a U.S. intermediary entity, remains prohibited. 
3. Funds accepted in violation of this section shall be returned or otherwise surrendered to the State. 
4. Cultural exchange agreements are prohibited with a foreign adversary, or any foreign principal of said countries. 
5. No student or scholar association affiliated with or operating at any educational institution may coordinate activities with a foreign adversary, or a foreign principal of said country, or any foreign terrorist organization. Any violation of this prohibition shall result in the educational institution ending any affiliation with the student or scholar association. Member dues or fees shall not be considered a gift. 
6. No institution of public education may allow a foreign adversary, or a foreign principal of said country, to have any say, including consultative, in hiring staff, defining educational content, setting school policies, or curtailing the free expression of students and faculty. 

Section 5. Reporting and Disclosure.     

1. Institutions of public education shall continue to comply with 20 U.S.C. §1011f (Disclosures of Foreign Gifts, also known as Section 117 of the Higher Education Act). 
2. Additionally, each institution of public education must report and disclose to the Secretary of Education or Board of Higher Education any contract with or gift from a foreign country and foreign principal valued at $10,000 or more, or aggregating $50,000 or more within a 12-month period. 
3. Reports must identify the donor/entity, country of origin (including the original source of funding if the donation is routed via bank accounts in another country), total value, date received, purpose of gift or contract terms, and due diligence review outcome. 
4. Reports must also identify any stipulations (including those items listed as “Restricted” in Section 117 of the Higher Education Act) regarding how or on what the funding may be spent, including: 
   • (a) Required non-disclosure agreements; 
   • (b) Hiring requirements, including but not limited to requirements to hire specific individuals, or specific types or nationalities or religions of personnel, or to consult with the donor or foreign principal before making specific hiring decisions; 
   • (c) Requirements to admit specific students, or students from specific countries or religions; 
   • (d) Restrictions on discussing the foreign country in a positive manner or to refrain from discussing the foreign country in a negative manner; 
   • (e) Required actions by the university regarding a foreign country or issues related to a foreign country; 
   • (f) Requirements that certain student clubs or other activities be allowed on campus and/or receive school funding and support. 
5. The submitted report shall also include a copy of any gift agreement between the foreign source and the institution of public education. 
6. All reports shall be submitted within one month of receiving the gift, and submissions shall be made in a digital spreadsheet with a searchable or sortable format. 
7. The Department of Education and board of Higher Education shall maintain a public transparency database with the information required under this section accessible online. 

Section 6. Enforcement and Penalties.  

1. Any institution of public education or affiliate organization found in violation of this article shall: 
   • (a) Repay or forfeit to the State a sum equal to the prohibited gift or contract value; 
   • (b) Be ineligible for State-funded research grants for up to five years; 
   • (c) Be subject to civil penalties of up to $250,000 per violation. 
2. The Attorney General may bring civil action in Circuit Court to enforce the provisions of this article. 
3. Whistleblowers disclosing noncompliance may receive up to ten percent of recovered funds 
4. Personnel of institutions of public education who knowingly conceal prohibited funding shall face appropriate legal consequences for defrauding the government. 
5. Egregious violations may result in institutions of public education losing legal authorization to operate and grant degrees. 
6. The state auditor, or an authorized designee, shall annually inspect or audit a random sample of at least 10% of institutions of public education, including those that did not submit any disclosure report under this Section, to determine compliance with the requirements of this act. 
7. The Attorney General shall utilize all existing statutory powers of investigation, including subpoena power and advanced investigative tools, to monitor compliance with this Act and to investigate any other attempts by foreign adversaries, foreign nations funding American public schools, or a foreign principal of said countries, to conceal funding or exert ideological influence, or gather intelligence in the state. 

Section 7. Waivers Prohibited.    

No executive agency, commission, university board, or committee may waive any provision of this article.  

Section 8. Additional Designation Authority.       

1. The Governor shall establish criteria to be used for designations as outlined in this paragraph. The Governor may designate any Foreign nations funding American public schools or foreign principals of said countries, as prohibited entities for purposes of Section 4 of this article. (Some states may prefer to authority rest with the Attorney General, a joint committee, or some other method) Notice of any such change shall be filed with the Legislature and posted publicly on a state government website. 
2. An institution of public education may apply to the Governor for a waiver to accept a gift from a country or foreign principal of a foreign nation funding American public schools. (Some states may prefer to authority rest with the Attorney General, a joint committee, or some other method.) The waiver request shall explain the terms of the proposed donation and how the institution of public education will ensure the gift does not enable any foreign influence.    

Section 9. Severability. 

If any provision of this article or its application to any person or circumstance is held invalid, such invalidity does not affect other provisions or applications of this article, and the provisions of this article are severable.  

Section 10. Effective Date. 

This article shall take effect on a date determined by this legislative assembly and shall apply to all funding relationships entered into on or after that date.