Congressman Brandon Gill (R-Flower Mound) and Senator Ted Cruz (R-TX) have introduced the Foreign Influence Transparency and Accountability Act, a new bill designed to penalize U.S. universities that fail to report foreign funding from adversarial nations such as China, Russia, and Iran.
The legislation strengthens current requirements under the Higher Education Act, which already mandates that institutions disclose foreign gifts and contracts totaling $250,000 or more in a calendar year. The new bill aims to enforce stricter consequences for noncompliance and increase oversight of foreign involvement in America’s higher education system.
“American universities that receive taxpayer funding and mold the minds of our next generation of working adults should not be compromised by the foreign influence of adversarial nations and their big ticket donations,” said Rep. Gill. “I am honored to team up with Senator Ted Cruz of Texas to combat foreign propaganda in our higher education system through this legislation.”
Sen. Cruz echoed those concerns, citing the Chinese Communist Party’s extensive efforts to influence American thought and institutions.
“Unchecked foreign funding flowing into American universities opens the door for adversaries to influence American students and research,” Cruz said. “This bill would ensure that higher education institutions are held accountable if they fail to disclose foreign funding, as required by law.”
The bill includes several key provisions:
- A 300% excise tax on all funds received from designated adversarial countries
- A 110% excise tax on any unreported foreign funding
- Biennial audits of 30 U.S. universities, with priority given to those with large endowments and a history of noncompliance
Combined, these taxes could result in a 410% penalty for universities that both receive and fail to report such foreign funding.
The bill is supported by FDD Action and Heritage Action, two advocacy groups focused on national security and policy transparency.
“Protecting our academic institutions from covert foreign influence is essential for national security,” said Nick Stewart, FDD Action’s Senior Director of Government Relations. “We urge swift passage of this bill.”
The legislation comes amid ongoing investigations into American universities’ ties with foreign governments. Recently, the Trump administration launched a probe into the University of California over its alleged failure to report $220 million in donations from the Chinese government.
Supporters of the bill are calling for swift congressional action to ensure American educational institutions remain free from foreign manipulation and aligned with U.S. national interests.
