Overview
Title
To amend the Higher Education Act of 1965 to restrict contracts with foreign countries of concern and foreign entities of concern.
ELI5 AI
H.R. 938 is a bill that tries to make sure American colleges and universities don't work with certain foreign countries or companies that might be a threat. Schools can ask for special permission to work with them if they show it's safe and useful for their students.
Summary AI
H.R. 938 aims to amend the Higher Education Act of 1965 to prevent U.S. higher education institutions from engaging in contracts with certain foreign countries and entities deemed a concern for national security. It allows institutions to apply for a waiver to enter into such contracts for one year, subject to approval by relevant authorities like the Secretary of Education and federal intelligence and defense agencies. The waiver process requires detailed disclosure and justification, ensuring the contract benefits the institution and does not compromise U.S. security. Institutions that do not comply may face fines, investigation, and potential exclusion from federal funding programs.
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AnalysisAI
General Summary of the Bill
The proposed legislation, H.R. 938, titled the “No Contracts with Foreign Adversaries Act," seeks to amend the Higher Education Act of 1965. Its primary goal is to restrict higher education institutions in the United States from entering into contracts with foreign countries or entities deemed to pose security risks unless specific conditions are met. These conditions include obtaining a waiver which allows a one-year contract period if the institution can demonstrate that the contract aligns with its mission, benefits students, and promotes the security and economic vitality of the United States.
Significant Issues
There are several notable concerns associated with this bill:
Complexity and Ambiguity: The bill introduces complex and somewhat ambiguous definitions of what constitutes a "foreign country of concern" and a "foreign entity of concern." This could lead to confusion among institutions about compliance requirements, as the criteria for these designations lack precision and may be subject to varied interpretations.
Stringent Compliance Requirements: Institutions are required to terminate contracts within 60 days if designated as a concern. This timeframe might not provide sufficient time for institutions to comply, potentially causing disruptions in their operations, particularly for ongoing research projects or collaborations.
Financial Penalties: The financial penalties for non-compliance are tied to the total amount of federal funds received by an institution, which may disproportionately impact smaller institutions that have limited financial resources.
Bureaucratic Complexity: The waiver process involves consultation with multiple federal agencies, which could create administrative delays. These complexities might hinder institutions from engaging timely in collaborations that could be beneficial.
Retrospective Application: The bill applies its requirements to existing contracts, potentially creating legal challenges and logistical issues for agreements made before its enactment.
Broader Public Impact
The proposed legislation could lead to significant changes in how higher education institutions engage with foreign entities. While it aims to protect national security interests, its implementation may inadvertently impact international collaboration, which is a critical component of academic growth and innovation. If not carefully managed, the bill's complex requirements could stifle important educational and research partnerships, potentially slowing the global flow of knowledge.
Impact on Specific Stakeholders
Higher Education Institutions: These entities will face administrative and financial burdens to ensure compliance. Smaller institutions might be hit harder due to their limited resources, affecting their ability to maintain or create international partnerships.
Students and Faculty: These groups might experience reduced opportunities for international collaborations, impacting the diverse learning environment and research capabilities that rely heavily on global cooperation.
Government Agencies: The Department of Education and other federal agencies will need to coordinate effectively to manage the waiver processes and enforce compliance, necessitating resources and careful planning to avoid bureaucratic slowdowns.
In summary, while the "No Contracts with Foreign Adversaries Act" is rooted in strengthening national security, its broader implications could negatively affect the academic sector's dynamism and ability to engage globally. Careful consideration of its enforcement and potential consequences is essential to balancing security interests with educational and research benefits.
Issues
The complexity and ambiguity in defining 'foreign country of concern' and 'foreign entity of concern' under Sections 2 and 117A could lead to inconsistencies and confusion among institutions regarding compliance. This is significant both politically and legally as it involves national security considerations and international relations.
The stringent requirement for institutions to terminate contracts within 60 days if designated as a concern (Section 117A(c)) might not provide sufficient time for institutions to comply, potentially causing disruptions in their operations and negatively impacting collaborations and research. This raises operational and financial concerns.
The financial penalties and fines outlined in Section 117A(f), especially those based on a percentage of total federal funds received, may disproportionately impact smaller institutions with limited resources, creating ethical issues of fairness in enforcement.
The waiver process under Section 117A(b) involves a high level of bureaucratic complexity, requiring consultation with multiple federal agencies, which could lead to significant administrative delays affecting institutions' abilities to engage in timely and important collaborations.
The requirement for compliance officers to certify accurate compliance with waiver requests (Section 117A(e)) lacks guidelines, potentially leading to inconsistent certification processes and subjective decision-making by individual institutions.
The lack of clarity regarding what constitutes the 'benefit of the institution’s mission and students' as discussed in Section 117A(b) raises significant ethical questions on how these benefits are determined and who gets to decide, potentially influencing the fairness of waiver approvals.
The retrospective application of the Act's requirements to existing contracts (Section 117A(d)) may create legal challenges and complications, particularly for agreements entered into before the enactment, raising significant legal concerns.
Notification requirements to House and Senate committees before issuing waivers (Section 117A(b)(4)) could introduce political influences and bureaucratic delays, impacting the timeliness of decisions and affecting institutional operations.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
This section states the short title of the act, which is called the “No Contracts with Foreign Adversaries Act.”
2. Prohibition on contracts with certain foreign entities and countries Read Opens in new tab
Summary AI
The section prohibits higher education institutions in the U.S. from entering contracts with certain foreign countries or entities considered a security risk, unless they receive a special waiver that can extend the contract for one year—renewable under certain conditions and accompanied by assurances of benefits to the institution and U.S. security. The section also outlines compliance and enforcement measures, including fines for violations, and defines the terms "contract," "foreign country of concern," and "foreign entity of concern."
117A. Prohibition on contracts with certain foreign entities and countries Read Opens in new tab
Summary AI
Institutions in the U.S. are prohibited from entering contracts with certain foreign countries or entities that are deemed concerning. However, they can request a 1-year waiver for such contracts if it benefits the institution's mission and promotes U.S. security and stability, but violations of these rules can result in fines and loss of eligibility for future waivers.