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WASHINGTON — Private universities that fail to disclose financial investments in foreign entities could face hefty fines under a new bill introduced by Rep. Burgess Owens, R-Utah, this week.
Under the Reporting on Investments in Foreign Adversaries Act, private universities would be required to report any financial partnerships with foreign countries and entities considered hostile to the United States. The disclosure requirements would apply to colleges with endowments above $6 million or with more than $250 million in investments with a foreign adversary.
"It is unacceptable for American universities to funnel millions to foreign adversaries without transparency or accountability," Owens said in a statement. "Higher education must serve American interests — not Beijing's, not Moscow's, and not any other foreign adversary seeking to buy influence on our nation's campuses."
Colleges with foreign financial ties would be required to submit reports listing all investments purchased, sold, or held during the calendar year; the combined value of investments "as measured by the fair market value"; and the combined value of capital gains from investment sales.
Schools that fail to comply would be fined according to the value of investments held and sold, according to the bill.
The bill comes as Owens has recently targeted foreign countries' influence over U.S. schools, introducing a separate bill earlier this week that would require universities to disclose any contracts with foreign adversaries to the Department of Education. That proposal would specifically mandate universities report any contracts with China, Russia, North Korea, or Iran.
Owens introduced the Reporting on Investments in Foreign Adversaries Act in the last Congress. It's not yet clear when, or if, it will get a vote on the House floor.
