S.1684 - To require audits of institutions with respect to disclosures of foreign gifts, and for other purposes. (119th Congress)
Summary
S.1684 aims to increase transparency and accountability regarding foreign gifts to higher education institutions. It mandates regular audits of these institutions to ensure compliance with reporting requirements under Section 117 of the Higher Education Act of 1965. The bill also introduces excise taxes on unreported foreign funding and contributions from countries of concern.
Expected Effects
The bill will likely increase scrutiny of foreign funding sources for colleges and universities. It may also deter institutions from accepting funds from certain foreign entities or failing to report them accurately. This could lead to a shift in funding models for some institutions.
Potential Benefits
- Increased transparency in foreign funding of higher education.
- Greater accountability for institutions receiving foreign gifts and contracts.
- Potential reduction in undue foreign influence on academic research and curriculum.
- Enhanced ability for Congress and the public to monitor foreign funding sources.
- Discourages non-compliance through financial penalties.
Potential Disadvantages
- Increased administrative burden and costs for higher education institutions due to audits and reporting requirements.
- Potential chilling effect on legitimate international collaborations and funding opportunities.
- Possible legal challenges related to the definition of "foreign country of concern".
- Could disproportionately affect institutions with large endowments or existing international agreements.
- May lead to unintended consequences if institutions avoid reporting to evade taxes.
Constitutional Alignment
The bill's focus on transparency and accountability aligns with the principles of informed governance. Congress's power to regulate commerce and provide for the general welfare (Article I, Section 8) supports its authority to oversee foreign funding of educational institutions. The First Amendment implications regarding academic freedom would need careful consideration during implementation to ensure no infringement on free speech or association.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).