House Education panel advances bill to tighten foreign‑gift reporting at colleges

The House Committee on Education and Labor on Monday voted to report HR 1048, titled the Deterrent Act, which would change Section 117 of the Higher Education Act to expand disclosure requirements for foreign gifts and contracts to colleges and universities.

The bill, offered in substitute form by Representative Michael Baumgartner, would reduce the annual reporting threshold for foreign gifts and contracts from $250,000 to $50,000 for all foreign sources and to $0 for designated "countries of concern," and would expand reporting to include gifts to individual staff and endowment investments at large private institutions. "There is no greater weapon in America's arsenal of democracy than sunlight," Baumgartner said while explaining the amendment in the nature of a substitute.

Supporters framed the bill as a national security measure. Representative Thompson said the measure "will help mitigate these threats by increasing transparency in foreign investments, closely scrutinizing any gifts or contracts from our adversaries, and implementing concrete enforcement actions for noncompliance." Sponsors also included language to require institutions to maintain a compliance officer, improve interagency coordination, allow batch reporting, and provide enforcement steps up to loss of federal student aid for persistent noncompliance.

Opponents warned the changes could hamper international research collaboration and impose heavy administrative burdens on colleges and faculty. Representative Bobby Scott, the committee's ranking member, said the bill risks treating routine interactions as suspicious and questioned implementation mechanics such as whether small hospitality or incidental items would trigger reporting. "This bill would require faculty to report any gift, even coffee and donuts, received by somebody born in a country of concern," Scott said.

Other Democrats argued the bill's penalties were excessive and that it lacked funding or technical assistance for institutions to comply. Representatives Monica McBath, Suzanne Bonamici and Adriano Adams asked committee leaders to pair enforcement with funding and to avoid measures that could chill legitimate collaboration. Supporters said the bill includes streamlining and technical-assistance provisions like batch uploads and allowing up to three designated reporters at large schools.

After recorded votes on pending amendments, the committee moved HR 1048 as amended to the full House with a final reported tally recorded as 20 yeas and 14 nays. The committee recorded several postponed roll‑call votes during markup and allowed members to enter supplemental views in the committee record.

The measure would amend the Higher Education Act's Section 117 reporting regime and create new compliance and enforcement mechanisms; if enacted, it would require implementing guidance from the Department of Education.

Votes at a glance HR 1048, Deterrent Act — Committee reported to the House as amended. Final tally on reporting: 20 yeas, 14 nays.

Next steps: The bill will be placed on the House Committee on Education and Labor's calendar for consideration by the full committee and then may be reported to the House floor if the committee leadership brings it forward.