The House of Representatives on Tuesday passed the DETERRENT Act, a bipartisan bill aimed at protecting U.S. colleges and universities from foreign interference, particularly from the Chinese Communist Party (CCP). The legislation, spearheaded by House Select Committee on China Chairman John Moolenaar (R-MI), received widespread support as lawmakers responded to mounting evidence of CCP-linked infiltration in American higher education.
Chairman Moolenaar called the legislation a “critical stand” against China’s attempts to exploit U.S. academic institutions for strategic gain.
“The passage of the DETERRENT Act is a powerful response to China’s aggressive attempts to use financial leverage to undermine our universities and national security,” Moolenaar said in a statement. “By strengthening oversight, we are ensuring American higher education remains focused on its mission of academic integrity, not serving the interests of hostile foreign powers.”
The legislation follows an alarming investigation revealing nearly $40 million in previously unreported contracts between top U.S. universities and Chinese organizations with direct ties to the Chinese government and its military. Intelligence officials have repeatedly warned that the CCP uses educational partnerships to steal intellectual property, suppress academic freedom, and spread propaganda on U.S. campuses.
While universities are currently required to disclose foreign gifts and contracts over $250,000 under Section 117 of the Higher Education Act, experts say the law is riddled with loopholes, inconsistent enforcement, and a lack of transparency.
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The DETERRENT Act (Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions) closes those loopholes and imposes stricter accountability measures. Among its major reforms:
- Lowers the reporting threshold for foreign gifts and contracts from $250,000 to $50,000 — and to $0 for adversarial nations like China.
- Requires disclosure of foreign contracts made directly with individual faculty members at research-intensive institutions.
- Imposes penalties, including fines and potential loss of federal funding, on schools that fail to comply.
- Improves transparency and reporting infrastructure to ensure consistent monitoring across all federally funded institutions.
The bill is viewed as an essential move to safeguard sensitive research, preserve academic freedom, and counter foreign influence operations.
While Republicans led the charge on the bill, several Democrats joined in supporting the measure as part of a broader effort to reinforce U.S. national security infrastructure.
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“This is about protecting our intellectual property, our students, and our national defense,” said one co-sponsor of the bill. “Foreign adversaries like the CCP should not be able to buy their way into our classrooms and research labs without accountability.”
With House passage secured, the DETERRENT Act now heads to the Senate, where it is expected to receive consideration in the coming weeks.
If enacted into law, the DETERRENT Act would represent the most sweeping overhaul of foreign funding transparency rules for higher education in decades — and would place universities on notice that their global financial ties are now a matter of national security.
Chairman Moolenaar summed up the moment: “This is a victory in the fight to protect our education system from CCP influence — and to ensure it remains a place of learning, not manipulation.”
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