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No Contracts with Foreign Adversaries Act
3/5/2025, 5:08 AM
Summary of Bill HR 938
The bill specifically targets countries and entities that are considered to pose a threat to national security or engage in human rights abuses. It seeks to prevent these foreign actors from exerting undue influence on American higher education institutions through financial or other means.
Under the proposed legislation, colleges and universities would be required to disclose any contracts or agreements they have with foreign countries or entities of concern. They would also be prohibited from accepting certain types of funding or resources from these entities. The bill has garnered bipartisan support in Congress, with lawmakers from both parties expressing concerns about the potential for foreign interference in American higher education. Supporters argue that the legislation is necessary to protect national security and academic freedom. Critics of the bill, however, have raised concerns about the potential impact on international collaboration and exchange programs. They argue that the restrictions could hinder the ability of American institutions to engage with foreign partners and limit opportunities for students and researchers. Overall, Bill 119 HR 938 represents a significant effort to address the growing concerns about foreign influence in higher education. It remains to be seen how the legislation will be implemented and what impact it will have on the relationships between American colleges and universities and foreign countries and entities.
Congressional Summary of HR 938
No Contracts with Foreign Adversaries Act
This bill prohibits institutions of higher education (IHEs) from entering into contracts with a foreign country of concern (e.g., North Korea, China, Russia, or Iran) or with a foreign entity of concern (e.g., a foreign entity that is owned or controlled by North Korea, China, Russia, or Iran) without obtaining a waiver.
The bill outlines the process by which an IHE may receive a waiver from the Department of Education (ED) to enter into a contract with a foreign country of concern or with a foreign entity of concern. Specifically, an IHE that desires to enter into such a contract may submit to ED, not later than 120 days before the IHE enters into such a contract, a request to waive the prohibition with respect to the contract. Generally, a waiver issued under this bill shall only waive the prohibition for a one-year period (subject to renewals). Additionally, the bill requires ED to notify Congress of the intent to issue a waiver, including a justification for the waiver.
The bill also requires an IHE that has already entered into a contract prior to the bill's enactment to submit a waiver request to ED within 30 days of the bill's enactment.
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.
