[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [S. 3443 Introduced in Senate (IS)] <DOC> 118th CONGRESS 1st Session S. 3443 To prohibit institutions of higher education, elementary schools, and secondary schools from receiving Federal funds if those schools or institutions have covered relationships with covered persons, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES December 7, 2023 Mr. Rubio (for himself and Mr. Scott of Florida) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions _______________________________________________________________________ A BILL To prohibit institutions of higher education, elementary schools, and secondary schools from receiving Federal funds if those schools or institutions have covered relationships with covered persons, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Protecting Education from Malign Foreign Influence Act of 2023''. SEC. 2. DEFINITIONS. In this Act: (1) Adversarial foreign government.--The term ``adversarial foreign government'' means the government of any of the following: (A) The People's Republic of China. (B) The Russian Federation. (C) The Islamic Republic of Iran. (D) The Democratic People's Republic of Korea. (E) The Republic of Cuba. (F) The regime of Nicolas Maduro in Venezuela. (G) The Syrian Arab Republic. (H) Any other country designated as an adversarial foreign government for purposes of this section by the Secretary of State. (2) Confucius classroom.--The term ``Confucius classroom'' means-- (A) an entity that has a relationship with a Confucius Institute and seeks to influence early childhood, elementary, or secondary education in the United States; and (B) any successor or replacement entity, or any other similar entity, intended to influence education in the United States. (3) Confucius institute.--The term ``Confucius Institute'' means-- (A) a cultural institution that is directly or indirectly funded by the Government of the People's Republic of China and seeks to influence education in the United States; and (B) any successor or replacement institution, or any other similar institution, intended to influence education in the United States. (4) Covered person.--The term ``covered person'' means a foreign person that is any of the following: (A) An adversarial foreign government, including any agency of an adversarial foreign government, or an official or agent of an adversarial foreign government. (B) A political party of an adversarial foreign government, including the Chinese Communist Party, or an official or member of such a political party, including any members of the Chinese Communist Party. (C) The People's Liberation Army, the People's Armed Police, or any other armed entity affiliated with the Chinese Communist Party or the People's Republic of China. (D) An entity identified by the Secretary of Defense under section 1260H(a) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 113 note) as a Chinese military company. (E) Any Chinese military company identified by the Secretary of Defense pursuant to section 1237(b) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 1701 note). (F) Any entity on the Non-SDN Chinese Military- Industrial Complex Companies List maintained by the Office of Foreign Assets Control of the Department of the Treasury. (G) The government of any country determined by the Secretary of State to have repeatedly provided support for acts of international terrorism, for purposes of-- (i) section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i)); (ii) section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371); or (iii) section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)). (H) The Government of the Russian Federation, any entity owned or controlled by that Government, or any entity with respect to which the Secretary of the Treasury has imposed sanctions under Executive Order 13662 (50 U.S.C. 1701 note; relating to blocking property of additional persons contributing to the situation in Ukraine). (I) Any entity included on any of the following lists maintained by the Department of Commerce: (i) The Entity List set forth in Supplement No. 4 to part 744 of the Export Administration Regulations under subchapter C of chapter VII of title 15, Code of Federal Regulations. (ii) The Denied Persons List maintained pursuant to section 764.3(a)(2) of the Export Administration Regulations. (iii) The Unverified List set forth in Supplement No. 6 to part 744 of the Export Administration Regulations. (iv) The Military End-User List set forth in Supplement No. 7 to part 744 of the Export Administration Regulations. (J) Any entity or individual determined to pose a risk to the national security of the United States, the integrity of education in the United States, or students' freedom of expression in the United States, by-- (i) the Secretary of Education; (ii) the Secretary of Defense; or (iii) the Secretary of Transportation, the Secretary of the Interior, or the Secretary of Homeland Security, with respect to institutions under the jurisdiction of such Secretaries. (K) An entity substantively involved in the economic or industrial policies or military-civil fusion strategy of the People's Republic of China, including by-- (i) accepting funding, performing services, or receiving subsidies, relating to such policies or strategy; or (ii) having responsibilities for overseeing economic development projects, including the Made in China 2025 industrial strategy or the Belt and Road Initiative of the Government of the People's Republic of China. (L) Any college or university in the People's Republic of China that is determined by the Secretary of Defense to be substantively involved in the implementation of the military-civil fusion strategy, including any such college or university-- (i) known as the ``Seven Sons of National Defense''; (ii) that receives funding from-- (I) the People's Liberation Army; or (II) the Equipment Development Department, or the Science and Technology Commission, of the Central Military Commission; (iii) involved in military training and education, including any such college or university in partnership with the People's Liberation Army; (iv) that conducts military research or hosts dedicated military initiatives or laboratories, including such a college or university designated under the ``double first- class university plan''; (v) that is designated by the State Administration for Science, Technology, and Industry for the National Defense to host ``joint construction'' programs; (vi) that has launched a platform for military-civil fusion or created national defense laboratories; and (vii) that conducts research or hosts dedicated initiatives or laboratories for any other related security entity beyond the People's Liberation Army, including the People's Armed Police, the Ministry of Public Security, and the Ministry of State Security. (M) Any privately owned entity in the People's Republic of China that-- (i) has received a military production license from the Government of the People's Republic of China, such as the Weapons and Equipment Research and Production Certificate, the Equipment Manufacturing Unit Qualification, the Weapons and Equipment Quality Management System Certificate, or the Weapons and Equipment Research and Production Unit Classified Qualification Permit; (ii) is otherwise known to have set up mechanisms for engaging in activity in support of military initiatives; (iii) has a history of subcontracting for the People's Liberation Army or its affiliates; or (iv) is participating in, or receiving benefits under, a military-civil fusion demonstration base. (N) An entity owned, directed, operated, controlled, financed, or influenced, directly or indirectly, by an entity or individual described in this paragraph, including a Confucius Institute and a Confucius classroom. (O) An entity or individual that has the ability, through ownership of a majority or a dominant minority of the total outstanding voting interest in an entity, board representation, proxy voting, a special share, contractual arrangements, formal or informal arrangements to act in concert, or other means, to determine, direct, or decide, for an entity described in this paragraph, an important matter. (P) An entity that owns or controls, or is under common ownership or control with, an entity described in this paragraph. (5) Covered relationship.--The term ``covered relationship'' means, at an institutional or school level, or with respect to a faculty or staff member employed at the institution or school-- (A) with respect to a covered person-- (i) the distribution or receipt of a grant, gift, donation, present, award, contribution, scholarship, or loan; (ii) having in place an agreement, including-- (I) a written statement of mutual interest in an academic or research collaboration; (II) a written statement in regard to the selection or admission of students; or (III) a written statement in regard to the establishment of departments, centers, or research or lecture programs; (iii) a partnership; (iv) a collaboration; (v) having in place a contract; or (vi) at the individual faculty or staff level, employing or being employed by a covered person; and (B) with respect to a foreign source that is not a covered person-- (i) the distribution or receipt of a grant, gift, donation, present, award, or contribution that is equal to or greater than $50,000; (ii) a relationship described in clause (ii) through (v) of subparagraph (A); or (iii) at the individual faculty or staff level, employing or being employed by a foreign source. (6) Elementary school.--The term ``elementary school'' has the meaning given that term in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801). (7) Foreign person.--The term ``foreign person'' means an individual or entity that is not a United States person. (8) Foreign source.--The term ``foreign source'' has the meaning given that term in section 117(h) of the Higher Education Act of 1965 (20 U.S.C. 1011f(h)). (9) Institution of higher education.--The term ``institution of higher education'' has the meaning given that term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002), and includes a State maritime academy and a Tribal College or University (as such term is defined in section 316 of the Higher Education Act of 1965 (20 U.S.C. 1059c)). (10) Military-civil fusion strategy.--The term ``military- civil fusion strategy'' means the strategy of the Chinese Communist Party aiming to mobilize non-military resources and expertise for military applications, including the development of technology, improvements in logistics, and other uses of such resources and expertise, by the People's Liberation Army. (11) Secondary school.--The term ``secondary school'' has the meaning given that term in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801). (12) United states person.--The term ``United States person'' means-- (A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or (B) an entity organized under the laws of the United States or of any jurisdiction within the United States. SEC. 3. PROHIBITIONS RELATING TO HIGHER EDUCATION. (a) Prohibition on Covered Relationships.-- (1) In general.--An institution of higher education, including any member of the faculty or staff of an institution of higher education, that receives Federal funds-- (A) shall not enter into or maintain a covered relationship with a covered person; and (B) shall establish and maintain a policy to-- (i) prohibit faculty and staff of the institution from entering into or maintaining covered relationships with covered persons; (ii) require faculty and staff to report to the institution covered relationships with foreign sources; and (iii) provide guidance to faculty and staff to help faculty and staff-- (I) take preventative actions regarding covered relationships with covered persons; and (II) identify existing covered relationships with covered persons. (2) Enforcement.--Upon determination, after reasonable notice and opportunity for a hearing, that an institution of higher education has knowingly violated subparagraph (A) of paragraph (1), including by failing to exercise reasonable oversight over its faculty and staff with respect to preventing a violation of subparagraph (A) of paragraph (1)-- (A) the Secretary may suspend or terminate the eligibility status for any or all Federal funding (including funding under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)) of any otherwise eligible institution, in accordance with procedures specified in such Act as applicable, until the Secretary finds that such practices have been corrected; or (B) the Secretary may impose a civil penalty upon such institution. (b) Prohibition of Ownership, Operation, or Control.-- (1) In general.--Subject to paragraph (2), an institution of higher education shall not be eligible to receive Federal funds if that institution is owned, operated, or controlled by a covered person. (2) Transition period.-- (A) Institutions that are noncompliant as of the date of enactment.--Notwithstanding any other provision of law, and on a case-by-case basis, the Secretary may allow an institution that is owned, operated, or controlled by a covered person as of the date of enactment of this Act a transition period of not more than 4 years from the date of enactment of this Act, during which time the institution may continue to receive Federal funding. (B) Institutions that are noncompliant after the date of enactment.--Notwithstanding any other provision of law, and on a case-by-case basis, the Secretary may allow an institution with respect to which the status of being owned, operated, or controlled by a covered person came into effect after the date of enactment of this Act a transition period of not more than 1 year from the date on which that institution is found to be owned, operated, or controlled by a covered person, during which time the institution may continue to receive Federal funding. (3) Identification of noncompliant institutions.--Not later than 1 year after the date of enactment of this Act, the Secretary shall identify institutions that are owned, operated, or controlled by a covered person and notify such institutions about the prohibition under this subsection. (c) Reports by IHEs.--Each institution of higher education shall annually submit a report to each Federal agency from which that institution receives Federal funding, containing information about-- (1) the extent to which the institution (including faculty and staff of the institution) has, or has had, covered relationships with covered persons; (2) the extent to which covered entities have undermined or undermine academic integrity, influence academic and extra- curricular activities, and stifle free speech, at the institution of higher education; (3) preventative actions that the institution of higher education took or plans to take regarding covered relationships with covered persons; (4) enforcement actions that the institution of higher education took or plans to take regarding covered relationships with covered persons; and (5) any ways in which the Federal agency could help the institution of higher education-- (A) take preventative actions regarding covered relationships with covered persons; and (B) identify existing covered relationships with covered persons of which the institution of higher education is not aware. (d) Report to Congress.--The Secretary of Education, in consultation with every other Federal agency that provides funding to institutions of higher education, shall provide an annual report to Congress that shall include, at minimum-- (1) information about the extent to which institutions of higher education have had or have relationships with foreign sources, particularly covered persons; (2) the extent to which covered persons have undermined or undermine academic integrity, influence academic and extra- curricular activities, and stifle free speech, at institutions of higher education; (3) preventative actions that the Federal agencies took or plan to take regarding covered relationships with covered persons; (4) enforcement actions that the Federal agencies took or plan to take regarding covered relationships with covered persons; and (5) any technical assistance that the Secretary or any other Federal agency has carried out to help institutions of higher education-- (A) take preventative actions regarding covered relationships with covered persons; and (B) identify existing covered relationships with covered persons of which the institution of higher education is not aware. SEC. 4. PROHIBITIONS RELATING TO ELEMENTARY AND SECONDARY EDUCATION. (a) Prohibitions Relating to Covered Relationships With Covered Persons.--Subpart 2 of part F of title VIII of the Elementary and Secondary Education Act of 1956 (20 U.S.C. 7901) is amended by inserting after section 8549C the following new section: ``SEC. 8549D. PROHIBITION ON COVERED RELATIONSHIPS WITH COVERED PERSONS. ``(a) In General.--Each State receiving funds under this Act shall, as a condition of receiving administrative funds under this Act-- ``(1) establish and implement a statewide policy-- ``(A) prohibiting elementary schools and secondary schools receiving funds under this Act, and their faculty, teachers, and staff from entering into or maintaining covered relationships with covered persons; ``(B) enforcing such prohibition; and ``(C) helping elementary schools and secondary schools identify current violations of such prohibition, and avoid entering into covered relationships with covered persons; ``(2) develop reporting requirements for elementary and secondary schools receiving funds under this Act to enable the State to certify to the Secretary that the State is in compliance with this section, and make such certifications; ``(3) provide such data that the Secretary requires, which shall include, at minimum-- ``(A) the extent to which elementary schools and secondary schools receiving funds under this Act have had or have covered relationships with covered persons; ``(B) the extent to which covered entities have undermined or undermine academic integrity, influence academic and extra-curricular activities, and stifle free speech, at such schools; ``(C) preventative actions that the State took or plans to take regarding the requirements under this section; and ``(D) enforcement actions that the State took or plans to take regarding the requirements under this section. ``(b) Report.--The Secretary shall prepare and submit an annual report to Congress on-- ``(1) the extent of the covered relationships between schools described in this section and covered persons; ``(2) the extent to which covered entities undermine academic integrity, influence academic and extra-curricular activities, and stifle free speech at such schools; and ``(3) any preventative and enforcement actions the Secretary and the States took or plan to take regarding the requirements of this section. ``(c) Definitions.--In this section, the terms `covered person' and `covered relationship' shall have the meanings given such terms in section 2 of the Protecting Education from Malign Foreign Influence Act of 2023.''. (b) Prohibitions Relating to Ownership, Operation, or Control by Covered Entities.-- (1) In general.--A private elementary school or secondary school shall not be eligible to receive Federal funds if that private elementary school or secondary school is owned, operated, or controlled by a covered person. (2) Funds under part a of title i.--Section 1117 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6320) is amended by adding at the end the following: ``(f) Ineligibility.-- ``(1) In general.--In accordance with section 4(b) of the Protecting Education from Malign Foreign Influence Act of 2023 (including the transition provisions of such section), a private elementary school or secondary school shall not be eligible to receive funds under this section if that private elementary school or secondary school is owned, operated, or controlled by a covered person (as that term is defined in section 2 of the Protecting Education from Malign Foreign Influence Act of 2023). ``(2) Parent notification.--In the case of a school that is ineligible to receive funds, as described in paragraph (1), that school shall notify the parents of students attending the school about such ineligibility not later than 7 days after receiving notice from the Department of Education about such ineligibility.''. (3) Other esea funds.--Subpart 1 of part F of title VIII of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7881 et seq.) is amended by adding at the end the following: ``SEC. 8507. PROHIBITION ON FUNDING FOR SCHOOLS OWNED, OPERATED, OR CONTROLLED BY A COVERED PERSON. ``In accordance with section 4(b) of the Protecting Education from Malign Foreign Influence Act of 2023 (including the transition provisions of such section), a private elementary school or secondary school-- ``(1) shall not be eligible to receive funds under this Act (including funds described in section 8501) if that private elementary school or secondary school is owned, operated, or controlled by a covered person (as that term is defined in section 2 of the Protecting Education from Malign Foreign Influence Act of 2023); and ``(2) shall notify parents of students that attend the school about the ineligibility described in paragraph (1) not later than 7 days after receiving notice from the Department of Education about such ineligibility.''. (4) Transition period; identification.-- (A) Schools that are noncompliant as of the date of enactment.--Notwithstanding any other provision of law, and on a case-by-case basis, the Secretary may allow a private elementary school or secondary school that is owned, operated, or controlled by a covered person as of the date of enactment of this Act a transition period of not more than 4 years from the date of enactment of this Act, during which time the private elementary school or secondary school may continue to receive Federal funding. (B) Schools that are noncompliant after the date of enactment.--Notwithstanding any other provision of law, and on a case-by-case basis, the Secretary may allow a private elementary school or secondary school with respect to which the status of being owned, operated, or controlled by a covered person came into effect after the date of enactment of this Act a transition period of not more than 1 year from the date on which that private elementary school or secondary school is found to be owned, operated, or controlled by a covered person, during which time such school may continue to receive Federal funding. (C) Identification of noncompliant institutions.-- Not later than 1 year after the date of enactment of this Act, the Secretary shall identify private elementary schools or secondary schools that are owned, operated, or controlled by a covered person and notify such schools about the prohibition under this subsection. SEC. 5. PROHIBITION ON RESERVE OFFICERS' TRAINING CORPS PROGRAMS AT CERTAIN EDUCATIONAL INSTITUTIONS. The Secretary of a military department may not establish or maintain-- (1) a unit of the Junior Reserve Officers' Training Corps under chapter 102 of title 10, United States Code, at a secondary school owned, operated, or controlled by a covered person; or (2) a unit of the Senior Reserve Officers' Training Corps under chapter 103 of such title at an institution of higher education owned, operated, or controlled by a covered person. SEC. 6. PROHIBITION ON DEPARTMENT OF DEFENSE EDUCATION ACTIVITY SCHOOLS, MILITARY SERVICE ACADEMIES, AND BUREAU OF INDIAN EDUCATION SCHOOLS FROM ENTERING INTO OR MAINTAINING COVERED RELATIONSHIPS WITH COVERED ENTITIES. (a) In General.--The Secretary of Defense shall prohibit any school operated by the Department of Defense Education Activity and any military service academy from entering into or maintaining a covered relationship with a covered person. (b) Military Service Academy Defined.--In this section, the term ``military service academy'' means the following: (1) The United States Military Academy. (2) The United States Naval Academy. (3) The United States Air Force Academy. (4) The United States Merchant Marine Academy. (5) The United States Coast Guard Academy. (c) BIE Schools.--Section 8549D of the Elementary and Secondary Education Act of 1965 (as added by section 4) shall apply to the Bureau of Indian Education with respect to elementary schools and secondary schools operated or funded by the Bureau of Indian Education in the same manner as that section applies to States. SEC. 7. DISCLOSURE REPORTS. (a) HEA Amendment.--Section 117 of the Higher Education Act of 1965 (20 U.S.C. 1011f) is amended to read as follows: ``SEC. 117. DISCLOSURES OF FOREIGN GIFTS. ``(a) Disclosure Report.--Whenever-- ``(1) any institution is owned, directed, controlled, financed, or influenced directly or indirectly by a foreign source; or ``(2) any institution, including a member of the faculty, professional staff, or other staff, of the institution enters into or maintains a covered relationship with a foreign source when-- ``(A) the relationship is restricted or conditional; ``(B) the value of such relationship is $50,000 or more considered alone or in combination with all other relationships with that foreign source within a calendar year; or ``(C) a foreign source involved in the relationship-- ``(i) resides in or is organized under the laws of, headquartered in, has its principal place of business in, or has more than 25 percent voting stock owned by affiliates that are citizens of a country that has an adversarial foreign government; or ``(ii) is owned, directed, controlled, financed, or influenced, directly or indirectly, by an individual who resides in a country that has an adversarial foreign government or an entity that is organized under the laws of, headquartered in, has its principal place of business in, or has more than 25 percent voting stock owned by affiliates that are citizens of, a country that has an adversarial foreign government; the institution shall file a disclosure report with the Secretary on January 31 or July 31, whichever is sooner. ``(b) Contents of Report.--Each report to the Secretary required by this section shall contain the following: ``(1) For relationships entered into or maintained with a foreign source other than a foreign government, the aggregate dollar value amount of gifts, contracts, agreements, partnerships, collaborations, and employment attributable to a particular country, and for each relationship-- ``(A) the full legal name of the foreign source; ``(B) the content of the contract and any conditions or restrictions; ``(C) in the case of a foreign source that is an individual, the country in which the individual resides and the individual's affiliations; ``(D) in the case of a foreign source that is an entity, the country where the foreign source is organized, headquartered, and has its principal place of business and the entity's ownership; ``(E) the steps taken to ensure that the foreign source is not a covered person; ``(F) the goal of the relationship, the length of the relationship, whether the relationship is curriculum or research oriented, whether the institution or foreign source received financial compensation for entering or maintaining the relationship, along with the amount of the compensation, and any changes in program or structure resulting from the relationship. ``(2) For relationships entered into or maintained with a foreign government-- ``(A) the name of the foreign government and the aggregate dollar value amount of gifts, contracts, agreements, partnerships, collaborations, and employment with that foreign government; ``(B) a description of the relationship, including the content of each such contract, and any conditions or restrictions; and ``(C) the goal of the relationship, the length of the relationship, whether the relationship is curriculum or research oriented, whether the institution or foreign source received financial compensation for entering or maintaining the relationship, along with the amount of the compensation, and any changes in program or structure resulting from the relationship. ``(3) In the case of an institution that is owned, directed, controlled, financed, or influenced, directly or indirectly by a foreign source, the identity of the foreign source, the foreign source's affiliations, the date on which the foreign source assumed such role, and any changes in program or structure resulting from such source's role. ``(c) Relation to PEMFIA.--In accordance with the Protecting Education from Malign Foreign Influence Act of 2023, an institution shall not be eligible to receive funds under this Act if that institution is owned, operated, directed, or controlled by a covered person. ``(d) Public Availability.--Not later than 30 days after the deadline for submission of a disclosure report under subsection (a), the Secretary shall submit that report to Congress and other appropriate Federal agencies and make the contents of the disclosure report publicly available online. The Secretary may disclose a redacted version of such report to the public only if the Secretary grants a petition from an institution to redact and the Secretary has determined that the institution has established grounds for such redaction. ``(e) Enforcement.-- ``(1) Court orders.--Whenever it appears that an institution has failed to comply with the requirements of this section, including any rule or regulation promulgated under this section, a civil action may be brought by the Attorney General, at the request of the Secretary, in an appropriate district court of the United States, or the appropriate United States court of any territory or other place subject to the jurisdiction of the United States, to request such court to compel compliance with the requirements of this section. ``(2) Costs.--For knowing or willful failure to comply with the requirements of this section, including any rule or regulation promulgated thereunder, an institution shall, at a minimum, pay to the Treasury of the United States the full costs to the United States of obtaining compliance, including all associated costs of investigation and enforcement. ``(f) Regulations.--The Secretary may promulgate regulations to carry out this section. ``(g) Agency Coordination.--The Secretary shall coordinate with other Federal agencies, as appropriate, including the Federal Bureau of Investigation and the Office of the Director of National Intelligence, to ensure that other Federal agencies have access to disclosure reports submitted under this section and any information or documentation relating to disclosure reports submitted under this section. ``(h) Definitions.--For the purpose of this section-- ``(1) the term `contract' means any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties; ``(2) the term `covered person' has the meaning given that term in section 2 of the Protecting Education from Malign Foreign Influence Act of 2023; ``(3) the term `covered relationship' has the meaning given that term in section 2 of the Protecting Education from Malign Foreign Influence Act of 2023; ``(4) the term `foreign source' means-- ``(A) a foreign government, including an agency of a foreign government; ``(B) a legal entity, governmental or otherwise, organized under the laws of, headquartered in, or having its principal place of business in, a foreign state or states; ``(C) an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and ``(D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source; ``(5) the term `gift' means any gift of money or property, the fair market value of an in-kind gift, or a grant, donation, present, award, contribution, or scholarship; ``(6) the term `institution' means an institution of higher education as defined in section 2 of the Protecting Education from Malign Foreign Influence Act of 2023; ``(7) the term `restricted or conditional relationship' means any relationship of any kind which includes provisions regarding-- ``(A) the employment, assignment, or termination of faculty; ``(B) the establishment of departments, centers, research or lecture programs, or new faculty positions; ``(C) the selection or admission of students; or ``(D) the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion.''. (b) Effective Date.--The amendments made by subsection (a) shall apply with respect to relationships entered into, or other activities carried out, on or after the date of the enactment of this Act, except that the prohibition described in subsection (c) of section 117 of the Higher Education Act of 1965 (as amended by subsection (a)) shall be subject to the transition provisions in section 3(b)(2) of the Protecting Education from Malign Foreign Influence Act of 2023. (c) Ensuring Compliance.--Each Federal agency shall ensure that no Federal funds under the jurisdiction of that agency are distributed to an institution that is knowingly or willfully in violation of section 117 of the Higher Education Act of 1965 (20 U.S.C. 1011f), as determined by the head of the relevant agency. SEC. 8. TECHNICAL ASSISTANCE; OTHER REPORTS. (a) Department of Education.--The Secretary of Education shall provide technical assistance to elementary schools, secondary schools, and institutions of higher education under the Secretary's jurisdiction to assist those entities and the faculty and staff of those entities in avoiding covered relationships with covered persons. (b) Other Federal Agencies.--The Secretary of Defense, the Secretary of Transportation, the Secretary of Homeland Security, and the Secretary of the Interior shall also provide such technical assistance to schools and institutions that are under their respective jurisdictions with respect to avoiding covered relationships with covered persons. SEC. 9. LIMITING EXEMPTION FROM FOREIGN AGENT REGISTRATION REQUIREMENT FOR PERSONS ENGAGING IN ACTIVITIES IN FURTHERANCE OF CERTAIN PURSUITS TO ACTIVITIES NOT PROMOTING POLITICAL AGENDA OF FOREIGN GOVERNMENTS. (a) Limitation on Exemption.--Section 3(e) of the Foreign Agents Registration Act of 1938 (22 U.S.C. 613(e)) is amended by striking the semicolon at the end and inserting the following: ``, but only if the activities do not promote the political agenda of a government of a foreign country;''. (b) Effective Date.--The amendment made by subsection (a) shall apply with respect to activities carried out on or after the date of the enactment of this Act. <all>