Sec. 138. Review by Committee on Foreign Investment in the United States of certain foreign gifts to and contracts with institutions of higher education
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Subsection (a)(4) of section 721 of the Defense Production Act of 1950 ( 50 U.S.C. 4565 ) is amended— in subparagraph (A)— in clause (i), by striking ; and and inserting a semicolon; in clause (ii), by striking the period at the end and inserting ; and ; and by adding at the end the following: any transaction described in subparagraph (B)(vi) proposed or pending after the date of the enactment of the Strategic Competition Act of 2021 . ; in subparagraph (B), by adding at the end the following:
Any gift to an institution of higher education from a foreign person, or the entry into a contract by such an institution with a foreign person, if— the value of the gift or contract equals or exceeds $1,000,000; or the institution receives, directly or indirectly, more than one gift from or enters into more than one contract, directly or indirectly, with the same foreign person for the same purpose the aggregate value of which, during the period of 2 consecutive calendar years, equals or exceeds $1,000,000; and the gift or contract— relates to research, development, or production of critical technologies and provides the foreign person potential access to any material nonpublic technical information (as defined in subparagraph (D)(ii)) in the possession of the institution; or is a restricted or conditional gift or contract (as defined in section 117(h) of the Higher Education Act of 1965 ( 20 U.S.C. 2011f(h) )) that establishes control. ; and by adding at the end the following:
For purposes of subparagraph (B)(vi): The term contract means any agreement for the acquisition by purchase, lease, or barter of property or services by a foreign person, for the direct benefit or use of either of the parties. The term gift means any gift of money or property. The term institution of higher education means any institution, public or private, or, if a multicampus institution, any single campus of such institution, in any State— that is legally authorized within such State to provide a program of education beyond secondary school; that provides a program for which the institution awards a bachelor's degree (or provides not less than a 2-year program which is acceptable for full credit toward such a degree) or a more advanced degree; that is accredited by a nationally recognized accrediting agency or association; and to which the Federal Government extends Federal financial assistance (directly or indirectly through another entity or person), or that receives support from the extension of Federal financial assistance to any of the institution's subunits. .
Subsection (b)(1)(C)(v)(IV)(aa) of such section is amended by adding at the end the following: Such regulations shall require a declaration under this subclause with respect to a covered transaction described in subsection (a)(4)(B)(vi)(II)(aa). . Subsection
(f)of such section is amended— in paragraph (10), by striking ; and and inserting a semicolon; by redesignating paragraph
(11)as paragraph (12); and by inserting after paragraph
(10)the following: as appropriate, and particularly with respect to covered transactions described in subsection (a)(4)(B)(vi), the importance of academic freedom at institutions of higher education in the United States; and . Subsection (k)(2) of such section is amended— by redesignating subparagraphs (H), (I), and
(J)as subparagraphs (I), (J), and (K), respectively; and by inserting after subparagraph
(G)the following: In the case of a covered transaction involving an institution of higher education (as defined in subsection (a)(4)(G)), the Secretary of Education. . Subsection (m)(3) of such section is amended— in subparagraph (B), by striking ; and and inserting a semicolon; in subparagraph (C), by striking the period at the end and inserting a semicolon; and by adding at the end the following: an evaluation of whether there are foreign malign influence or espionage activities directed or directly assisted by foreign governments against institutions of higher education (as defined in subsection (a)(4)(G)) aimed at obtaining research and development methods or secrets related to critical technologies; and an evaluation of, and recommendation for any changes to, reviews conducted under this section that relate to institutions of higher education, based on an analysis of disclosure reports submitted to the chairperson under section 117(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1011f(a) ). . Section 117 of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ) is amended— in subsection (a), by inserting after the Secretary the following: and the Secretary of the Treasury (in the capacity of the Secretary as the chairperson of the Committee on Foreign Investment in the United States under section 721(k)(3) of the Defense Production Act of 1950 ( ; and 50 U.S.C. 4565(k)(3) )) in subsection (d)— in paragraph (1)— by striking with the Secretary and inserting with the Secretary and the Secretary of the Treasury ; and by striking to the Secretary and inserting to each such Secretary ; and in paragraph (2), by striking with the Secretary and inserting with the Secretary and the Secretary of the Treasury . The amendments made by subsection
(a)shall— take effect on the date of the enactment of this Act, subject to the requirements of subsections
(d)and (e); and apply with respect to any covered transaction the review or investigation of which is initiated under section 721 of the Defense Production Act of 1950 on or after that date. The Committee on Foreign Investment in the United States, which shall include the Secretary of Education for purposes of this subsection, shall prescribe regulations as necessary and appropriate to implement the amendments made by subsection (a). The regulations prescribed under paragraph
(1)shall include— regulations accounting for the burden on institutions of higher education likely to result from compliance with the amendments made by subsection (a), structuring penalties and filing fees to reduce such burdens, and implementing any procedures necessary to protect academic freedom; and guidance with respect to the meaning of control , as defined in section 721(a) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(a) ), as that term applies to covered transactions described in clause
(vi)of paragraph (4)(B) of that section, as added by subsection (a)(1). The Committee shall issue a final rule to carry out the amendments made by subsection
(a)after assessing the findings of the pilot program required by subsection (e). Beginning on the date that is 30 days after the publication in the Federal Register of the matter required by paragraph
(2)and ending on the date that is 570 days thereafter, the Committee on Foreign Investment in the United States shall conduct a pilot program to assess methods for implementing the review of covered transactions described in clause
(vi)of section 721(a)(4)(B) of the Defense Production Act of 1950, as added by subsection (a)(1). Not later than 270 days after the date of the enactment of this Act, the Committee shall, in consultation with the Secretary of Education, publish in the Federal Register— a proposed determination of the scope of and procedures for the pilot program required by paragraph (1); an assessment of the burden on institutions of higher education likely to result from compliance with the pilot program; recommendations for addressing any such burdens, including structuring penalties and filing fees to reduce such burdens; and any procedures necessary to ensure that the pilot program does not infringe upon academic freedom.
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- 20 USC 2011f(h)
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Sec. 138
Review by Committee on Foreign Investment in the United States of certain foreign gifts to and contracts with institutions of higher education
Cite20 USC 2011f(h)
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