New York, NY; March 6, 2025—On February 6, the 119th Congress introduced H.R. 1048 as a necessary step to countering the malign foreign influence of America’s adversaries in colleges and universities. Titled the “Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act” (DETERRENT Act), this legislation augments transparency and oversight in higher education by lowering reporting thresholds for foreign donations, and increases accountability by mandating compliance. This bill is a necessary step in curtailing the influence of countries that are antithetical to American values.
Michael Baumgartner (R-WA), the bill’s sponsor, declared that: “Higher education is one of the jewels of American society; unfortunately, it’s also an area that is often under attack and used by maligned influences to subvert American interests.” For years, the National Association of Scholars (NAS) has worked to raise awareness about malign influence and combat it through policy.
This bill amends Section 117 of the 1965 Higher Education Act to lower the threshold from $250,000 to $50,000 for mandatory reporting of foreign gifts to universities. For “Countries of Concern” such as China, Russia, Iran, and other adversaries, the new reporting threshold will stand at a deterring amount of $0. NAS has tracked and long-advocated for lowering the threshold for reporting foreign gifts and closing loopholes for hostile powers like China.
The NAS has been at the forefront of sounding the alarm of foreign influence and foreign funds in American higher education. NAS has worked diligently to document the abuses of Section 117, uncover Confucius Institutes, Confucius Classrooms, track the funding of anti-Semitism, and Qatar’s influence America’s universities. This bill is a critical step in the right direction to restoring educational sovereignty and protecting it from geopolitical adversaries.
NAS furthermore applauds the 119th Congress for drafting the DETERRENT Act to mandate universities to employ and install a designated compliance officer in their administrations to perform necessary due diligence and ensure that foreign funds are accurately recorded and reported. Designating liability and responsibility to rest with a single administrator helps ensure permanent compliance.
Due to the politicization of the Department of Education, the NAS also strongly encourages that the Deterrent Act amends Section 117 compliance and reporting on foreign gifts to either the Internal Revenue Service or the Financial Crimes Enforcement Network for both oversight and enforcement.
“We’ve seen a growing awareness among policymakers and in broader American society of the risks posed by presence of countries like China in U.S. universities,” said Dr. Ian Oxnevad, the NAS Senior Fellow for Foreign Affairs and Security Studies. “Universities allow adversaries open access to American policymakers, dual use technologies, and opportunities to deploy soft power tools to undermine our national security and national cohesion,” Oxnevad concluded.
NAS supports the DETERRENT Act and supports its passage and signing into law.
NAS is a network of scholars and citizens united by a commitment to academic freedom, disinterested scholarship, and excellence in American higher education. Membership in NAS is open to all who share a commitment to these broad principles. NAS publishes a journal and has state and regional affiliates. Visit NAS at www.nas.org.
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If you would like more information about this issue, please contact Chance Layton at [email protected].
Photo by John McArthur on Unsplash
