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RIFA Act
3/5/2025, 1:23 PM
Summary of Bill HR 1023
Under this proposed legislation, colleges and universities would be required to report any foreign investments exceeding a certain threshold to the Department of Education. This information would then be made publicly available in order to ensure that stakeholders are aware of any potential conflicts of interest or undue influence from foreign entities.
The bill also includes provisions for the Department of Education to establish guidelines for reporting and monitoring foreign investments, as well as penalties for institutions that fail to comply with the disclosure requirements. Overall, the Foreign Investment Disclosure Act seeks to safeguard the integrity of higher education institutions and protect against potential threats to academic freedom and national security posed by undisclosed foreign investments. It is intended to provide greater transparency and accountability within the higher education sector, while also ensuring that colleges and universities remain free from undue foreign influence.
Congressional Summary of HR 1023
Reporting on Investments in Foreign Adversaries Act or the RIFA Act
This bill requires private institutions of higher education (IHEs) with specified assets or investments involving foreign countries or entities of concern to file annual investment disclosure reports. The bill applies to a private IHE with (1) assets in excess of $6 billion, or (2) investments of concern in excess of $250 million.
Specifically, the bill requires such a private IHE to file a disclosure report with the Department of Education (ED) for a year in which the IHE purchases, sells, or holds one or more investments of concern. Investment of concern means any specified interest (e.g., stock or debt) with respect to a foreign country of concern (e.g., North Korea, China, Russia, or Iran) or a foreign entity of concern (e.g., a foreign entity that is designated as a foreign terrorist organization).
Additionally, the bill requires ED to establish and maintain a publicly available and searchable database with these disclosure reports.
The bill requires ED to investigate possible violations of this bill and outlines the various penalties for each violation. Penalties may include losing eligibility for federal student financial aid.
