March 27, 2025 | Endorsements

H.R. 1048/S. 1296, the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act (DETERRENT) Act

March 27, 2025 Endorsements

H.R. 1048/S. 1296, the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act (DETERRENT) Act

Bottom Line Up Front

H.R. 1048 and S. 1296, the DETERRENT Act, is a targeted, commonsense transparency measure that strengthens existing law to ensure colleges and universities disclose foreign funding that may pose national security risks. At a time of intensifying strategic competition, the legislation ensures America’s higher education system — one of our nation’s greatest assets — is not exploited by foreign governments or malign actors seeking influence, access, and leverage.

Bill Number H.R. 1048
Bill Name DETERRENT Act (Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act)
Summary Strengthens Section 117 of the Higher Education Act by lowering foreign gift and contract reporting thresholds, requiring disclosure of intermediaries, and prohibiting contracts with designated countries and entities of concern absent a national security waiver.
Chamber Bicameral
Lead Sponsor Rep. Michael Baumgartner (R-WA)
Original Cosponsors Rep. Mark Messmer (R-IN), Rep. Burgess Owens (R-UT), Rep. Rick Allen (R-GA), Rep. Kevin Kiley (R-CA), Rep. Tim Walberg (R-MI), Rep. Joe Wilson (R-SC), Rep. Michael Rulli (R-OH), Rep. Virginia Foxx (R-NC), Rep. Glenn Grothman (R-WI)
Date Introduced 02/06/2025
Companion Bill S. 1296
Companion Lead Sponsor Sen. Thom Tillis (R-NC)
Companion Co-Lead Sen. Bill Cassidy (R-LA)
Companion Original Cosponsors Sen. Marsha Blackburn (R-TN), Sen. Shelley Moore Capito (R-WV), Sen. John Cornyn (R-TX), Sen. Mike Crapo (R-ID), Sen. Joni Ernst (R-IA), Sen. Chuck Grassley (R-IA), Sen. Cynthia Lummis (R-WY), Sen. Pete Ricketts (R-NE), Sen. Jim Risch (R-ID), Sen. Eric Schmitt (R-MO), Sen. Rick Scott (R-FL)

Read the full legislative text and view the list of cosponsors for the House and Senate versions.


Why It Matters

  • Foreign adversaries are heavily invested in U.S. higher education. Department of Education disclosures show roughly $405 million in transactions tied to entities on U.S. government watchlists, including the Commerce Entity List, the Sec. 1286 List, and the Department of Defense’s Sec. 1260H list of Chinese military companies. Sanctioned actors like Russia’s Skolkovo Foundation and China’s Beijing Institute of Technology have each funneled tens of millions of dollars into American institutions.
  • Existing law has failed to deliver transparency. A 2019 Senate report found that up to 70 percent of institutions failed to comply with Section 117 of the Higher Education Act. Loose statutory language, fragmented disclosure thresholds, and weak enforcement have allowed billions in foreign funding to flow into U.S. campuses with little visibility.
  • The bill closes well-documented loopholes without burdening institutions. The DETERRENT Act lowers the reporting threshold from $250,000 to $50,000, sets a $0 threshold for countries of concern, and requires aggregation across affiliated entities to prevent fragmentation. Schools already collect this information for federal and tax purposes — the bill clarifies and standardizes what they must disclose.
  • It gives national security agencies the visibility they need. Unredacted disclosure reports would be shared with the FBI, the intelligence community, and the Departments of Defense, State, Commerce, Homeland Security, and Energy within 30 days of receipt — turning a chronically opaque reporting regime into a usable tool for protecting U.S. research, intellectual property, and campus safety.

“The bipartisan DETERRENT Act is a vital step toward greater transparency and accountability in higher education. As foreign adversaries expand their influence on college campuses, this bill is essential to protecting academic freedom from intellectual theft, censorship, and intimidation. By tightening reporting requirements, closing loopholes, and enforcing consequences for noncompliance, this legislation strengthens national security and ensures America’s educational institutions remain bastions of free inquiry. FDD Action calls on lawmakers from both parties to support this commonsense bill.”

Nick Stewart

Managing Director of Advocacy, FDD Action

Congressional Press Releases

Read statements from members of Congress who are supporting this legislation:

Issues:

China Education Gulf States