No Contracts with Foreign Adversaries Act
- Bill Number
- H.R. 938
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-02-04: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2025-07-21T20:20:26Z
AI-Generated Summary
Purpose
The "No Contracts with Foreign Adversaries Act" (H.R. 938) aims to protect U.S. national security by prohibiting higher education institutions from entering into contracts with certain foreign countries or entities that could pose risks, while allowing limited waivers under strict conditions. It amends the Higher Education Act of 1965 to enforce these restrictions on institutions receiving federal funds.
Key Provisions
- Prohibition on Contracts: Institutions of higher education (excluding certain foreign-based ones) cannot enter contracts with "foreign countries of concern" (e.g., China, Cuba, Iran, North Korea, Russia, or others deemed harmful to U.S. security by the Secretary of Education in consultation with defense and intelligence officials) or "foreign entities of concern" (e.g., entities tied to those countries or listed under existing national security laws).
- Definition of Contract: Broadly includes agreements for purchasing/leasing property or services, affiliations involving the institution's resources, or exchanges, but excludes standard student payment agreements unless they cover more than 15 students or have restrictions.
- Waiver Process:
- Institutions must submit waiver requests at least 120 days before a contract starts, including the full contract text (translated to English if needed) and a certified statement showing the contract benefits the institution's mission, students, and U.S. security/economic interests.
- Waivers are limited to 1 year and apply only to the submitted contract terms; renewals require similar submissions.
- The Secretary of Education decides after consulting multiple federal agencies (e.g., FBI, CIA, State Department, Defense Department). Notifications to Congress are required before issuance.
- Handling Existing Contracts: Contracts predating the law get an automatic 1-year waiver; longer ones can be renewed under the same rules. If a partner is later designated as concerning, the contract must end within 60 days.
- Compliance Officer: Institutions seeking waivers must appoint an employee or authorized agent to certify compliance.
- Enforcement and Penalties:
- The Department of Education investigates violations; the Attorney General can bring civil suits to enforce compliance.
- Violators pay investigation costs and face fines: 5-10% of recent federal funding for first offenses, 20% for repeats, and ineligibility for waivers after multiple violations.
- Repeated violations (3 consecutive years) make institutions ineligible for federal student aid programs for at least 2 years, requiring 2 years of compliance to regain eligibility.
- Program Participation Update: Institutions must agree to comply as part of their federal aid participation.
Significant Changes to Existing Law
- Adds a new Section 117A to Part B of Title I of the Higher Education Act, creating the outright prohibition and waiver system—previously, Section 117 only required disclosures of foreign gifts and contracts without bans.
- Amends Section 487 to include compliance as a condition for federal program participation, introducing penalties like fines and aid ineligibility not previously tied to foreign contracts.
Potential Impacts
- On Government Agencies: Increases workload for the Department of Education in processing waivers, investigations, and consultations with agencies like the FBI, CIA, and others; may enhance inter-agency coordination on national security but strain resources.
- On Citizens and Institutions: U.S. colleges and universities may face reduced international collaborations, research funding, or student exchanges with restricted countries, potentially limiting educational opportunities for students and faculty. Could indirectly affect tuition or program costs if partnerships are curtailed.
- On International Relations: May heighten tensions with designated countries (e.g., by signaling distrust), potentially disrupting academic diplomacy or joint projects, while aligning with broader U.S. efforts to counter foreign influence in education.
Main Stakeholders Affected
- Higher Education Institutions: Primary targets, as they must comply, seek waivers, and face penalties; public and private universities reliant on federal aid are most impacted.
- Students and Faculty: Could see fewer global partnerships, research opportunities, or diverse programs, especially in fields like science and technology.
- Federal Government Agencies: Department of Education leads enforcement; consulting agencies (e.g., Defense, State, Intelligence Community) provide input on security risks.
- Foreign Countries and Entities: Restricted from contracting, potentially losing access to U.S. academic resources or collaborations.
- Congressional Committees: House Education and Workforce Committee and Senate Health, Education, Labor, and Pensions Committee receive waiver notifications.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes a robust enforcement framework with civil penalties and judicial involvement, but relies on designations that could be challenged if deemed arbitrary (e.g., under administrative law standards for fair process).
- Constitutional: May raise First Amendment concerns if restrictions on academic collaborations are seen as limiting free speech or association, though national security justifications could support it under precedents allowing government oversight of federally funded entities.
- Political: Reflects bipartisan concerns over foreign influence (e.g., intellectual property theft or espionage) in U.S. higher education, potentially influencing future legislation on China or similar adversaries, but could spark debates on academic freedom versus security.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-02-04: Referred to the House Committee on Education and Workforce.
- 2025-02-04: Introduced in House
- 2025-02-04: Introduced in House
Bill Versions
- No Contracts with Foreign Adversaries Act — issued 2025-02-04 — PDF (13 pages)