On February 26, 2025, the Congressional Research Service published a report describing college and university reporting requirements under Section 117 of the Higher Education Act.
The summary covers foreign gift and contract reporting requirements, examples of reported data, enforcement actions, and recent legislation.
Summary
The Congressional Research Service (CRS), a non-partisan, legislative branch agency within the Library of Congress that provides policy and legal analysis to committees and members of the House and Senate, recently published a report on Section 117 of the Higher Education Act of 1965. The 3-page report provides a brief overview of Section 117, which requires most U.S. institutions of higher education to report all foreign gifts and contracts that total $250,000 or more in a calendar year. The report, which will likely be useful starting point for anyone needing a broad overview of Section 117 reporting and compliance, outlines reporting requirements in a useful table and gives examples of the largest reported foreign gifts and contracts. It also describes the Department of Education’s enforcement authority with respect to Section 117, provides a broad overview of recent Department investigations, and summarizes Congressional investigations and reports alleging noncompliance.
Foreign Influence and Proposed Legislation
As the report mentions, Congress has recently shown particular interest in Section 117 reporting with respect to gifts and contracts associated with China. It is unsurprising, then, that several bills were introduced by members during the 118th Congress that would have applied new reporting requirements to Section 117. Although none of the three bills mentioned in the report became law, two of the three have been reintroduced in the current legislative session. In just the ten weeks that the 119th Congress has been in session, members have introduced the following legislation to amend Section 117:
Protecting Higher Education from Foreign Threats Act (H.R.455) – Would prohibit an institution of higher education from receiving federal funds for an award year in which the institution employs an instructor who, while employed at the institution and providing direct instruction to students, received funds from the Chinese Community Party.
No Foreign Gifts Act of 2025 (H.R.542) – Would prohibit an institution of higher education from receiving gifts from a country that has provided material support to a foreign terrorist organization or from China, Russia, North Korea, or Iran.
No Contracts with Foreign Adversaries Act (H.R.938) – Would prohibit an institution of higher education from entering into a contract with a foreign country/entity of concern.
Instructing Noteworthy Steps toward Transparency to Rout and Undo Calamitous Transactions (INSTRUCT) Act (H.R.1018) – Would make all required reports public records open to inspection
Reporting on Investments in Foreign Adversaries (RIFA) Act (H.R.1023) – Would require disclosure of certain foreign investments within endowments.
Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions (DETERRENT) Act (H.R.1048) – Would reduce reporting threshold to $50,000 and prohibit an institution of higher education from entering into a contract with a foreign country/entity of concern.
Institutions of higher education may wish to monitor pending Section 117 legislation to ensure that they are prepared to comply with any new requirements. A number of states have also passed legislation requiring reporting of gifts or contracts with countries of concern. The Manhattan Institute, a conservative think tank that has proposed model legislation in this area, notes that 13 states currently have foreign gift reporting requirements for colleges and universities.