(Texas Scorecard) – U.S. Sen. Ted Cruz of Texas introduced the Foreign Influence Transparency and Accountability Act, which aims to penalize universities that fail to report foreign funding. The new legislation seeks to enforce stronger transparency measures to ensure that universities report financial contributions from foreign adversaries such as China, Russia, and Iran.
U.S. Rep. Brandon Gill (R–Flower Mound) introduced companion legislation in the House.
“The Chinese Communist Party expends vast resources to control what Americans see, hear, and ultimately think, as do other adversaries, including Russia and Iran,” Cruz said on Thursday.
He added, “Unchecked foreign funding flowing into American universities opens the door for such adversaries to influence American students and research.”
By law, higher education institutions must report foreign funding. Under the Higher Education Act, U.S. colleges and universities must report foreign gifts and contracts totaling $250,000 or more each year.
The Foreign Influence Transparency and Accountability Act, supported by Heritage Action, would hold such institutions to account for failing to disclose any foreign funding received.
The proposed legislation would apply “a 300% excise tax on all funds institutions receive from designated countries of concern” and a “110% excise tax on unreported funds by institutions that fail to disclose funding from any foreign entity.” Universities with large endowments and a “history of misconduct” would receive audits every two years to ensure compliance.
Referring to academic institutions’ acceptance of billions in undisclosed funding, Heritage Action Executive Vice President Ryan Walker stated that the Department of Education “has failed the American people for years” and that “$6.5 billion has seeped into academia from adversarial nations such as China and Russia.”
Gill said that “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.”
“I am honored to team up with Senator Ted Cruz of Texas to combat foreign propaganda in our higher education system through this legislation,” he added.
In April, President Trump’s administration launched an investigation into the University of California, Berkeley, for allegedly failing to report $220 million from the Chinese government. According to the New York Post, the funds were meant “to build a joint Tsinghua-Berkeley Institute in the city of Shenzhen,” but were unreported.
Texas lawmakers are also considering measures to prohibit universities and public schools from entering into contracts and agreements with foreign adversaries.