Coalition of 26 Major Organizations Urges Congress to Pass the DETERRENT Act After Exposing Widespread Failures in Foreign Funding Disclosure

WASHINGTON, D.C. – May 4, 2026 – Today, a coalition of 26 major organizations announced the submission of a joint letter to Congressional leadership, including Speaker Mike Johnson, House Minority Leader Hakeem Jefferies, Senate Majority Leader John Thune, and Senate Minority Leader Chuck Schumer, urging them to adopt the DETERRENT Act (H.R. 1048 and S. 1296) during this 119^th Congress.

The DETERRENT Act, which passed the House with bipartisan support (241–169) in March 2025 and is now under consideration in the Senate, strengthens Section 117 reporting requirements for foreign donations and contracts to institutions of higher education. The legislation is designed to close longstanding gaps in oversight and ensure that foreign influence in American academia is fully disclosed and subject to accountability.

Dr. Charles Asher Small, Founder and Executive Director of the Institute for the Study of Global Antisemitism and Policy (ISGAP), said: “ISGAP’s Follow the Money Project has uncovered systematic efforts to circumvent existing transparency requirements under Section 117 of the Higher Education Act. We found that universities have chronically underreported or entirely omitted foreign gifts and contracts from mandatory federal disclosures. It’s paramount that we adopt the DETERRENT Act to enforce the law and safeguard our institutions. The time for voluntary compliance has passed. We urge Congress to act decisively to ensure transparency, accountability, and the protection of American academic institutions – from foreign influence and from efforts that undermine Western and liberal values while advancing extremist narratives.”

Section 117 of the Higher Education Act of 1965 requires institutions receiving federal funding to disclose foreign gifts and contracts to the U.S. Department of Education. These disclosures are intended to provide transparency into the scale and sources of foreign funding shaping American higher education. However, recent findings indicate that billions of dollars in foreign funding, particularly from non-democratic states, have gone unreported or underreported, undermining both public transparency and national security safeguards.

Tyler Stapleton, Senior Director of Government Relations FDD Action, said: “The U.S. higher education system is being targeted by authoritarian regimes and nations seeking to exploit our students and innovation centers for their own gain. New data and transparency disclosures have shown the shocking extent of foreign influence in U.S. higher education reaching into the billions of dollars annually. China, in particular, is using its universities as a front for its military to partner with leading U.S. universities and gain access to sensitive defense research and intellectual property. The DETERRENT Act would give the Department of Defense and other government agencies additional data on foreign partnership and contracts with U.S. schools that seek to undermine our national security and economic competitiveness. Without greater visibility in higher education, we are ceding ground to American’s adversaries.”

The DETERRENT Act does not prohibit universities from engaging in international partnerships. Rather, it ensures that such engagements are conducted transparently, with accurate reporting of funding sources and amounts. The coalition emphasizes that while global academic collaboration remains valuable, it must be accompanied by clear accountability and oversight.

Allen Friedman, NORPAC, said: “Antisemitism flourishes in the dark – when those funding it can hide in anonymity. The DETERRENT Act is an essential step toward removing that anonymity.”

The legislation introduces enhanced disclosure requirements, lowers reporting thresholds, strengthens enforcement mechanisms, and imposes penalties for non-compliance. It also includes provisions addressing contracts with entities tied to countries of concern, while incorporating safeguards for individual privacy.

The coalition is calling on Congress to act swiftly to restore transparency, strengthen oversight, and protect the integrity of American higher education.

The letter to Congressional leaders follows:

May 4, 2026

Dear Leaders of the U.S. House of Representatives and Senate:

On behalf of the 26 undersigned organizations, we urge Congress to adopt The DETERRENT Act (H.R. 1048 and S. 1296) and ensure its passage into law during this, the 119th Congress.

Section 117 of the Higher Education Act of 1965 requires institutions of higher education (IHE) that receive federal funding to disclose donations from and contracts with a foreign source to the US Department of Education. This allows full transparency and disclosure to the public of foreign funding in our institutions and programs of higher education.

As you know, there have been billions in funding from undemocratic nations to universities that have gone unreported to the U.S. Department of Education (DOE) as mandated by Section 117 of the Higher Education Act, potentially exposing the United States to national security threats and depriving the American public of foreign funding transparency in our educational institutions. DOE’s newly-released foreign funding portal goes a long way in making compliance easier for the universities and DOE’s new partnership with the State Department allows the data gathered to be reviewed to ensure potential threats are addressed decisively and proactively to protect America’s most vital interests.

The DETERRENT Act in the House had bipartisan sponsors and was passed with bipartisan votes in March of 2025. It amends Section 117 and provides that additional information in the disclosure of foreign gifts and contracts be provided; restricts contracts with certain foreign entities and foreign countries of concern; requires certain staff and faculty to report foreign gifts and contracts; requires disclosure once a year at a lower threshold amount as opposed to current law that requires reporting by IHE’s twice a year; and imposes fines on institutions that fail to meet the new requirements.

The Senate version follows the House version and made a few revisions, including clauses protecting staff/student identity and removing Section 117 c, which had required expanded reporting of foreign investments by private university endowments.

Section 117 does not prohibit institutions from taking foreign money; instead, it mandates accurate and transparent disclosures of sources and amounts to the federal government for public view. The time is now to pass the updated DETERRENT Act.

We look forward to assisting you in this important effort.

Sincerely,