CLASS Act Mandates Schools Report Foreign Funding Over $10K to Keep Federal Aid

The “Combating the Lies of Authoritarians in School Systems Act,” or CLASS Act, is setting up new rules for public elementary and secondary schools that take federal money. If a school wants to keep receiving that federal financial assistance, it now has to report any significant foreign cash flow or contracts to the Secretary of Education.

The New $10,000 Transparency Trigger

This isn't about bake sale money. The bill targets two specific financial activities. First, if a school receives more than $10,000 total from a foreign source, they have to report it. Second, if they enter into one or more contracts with a foreign source that total more than $10,000, that also triggers a report. The school has 30 days to send a written report to the Department of Education once either of those thresholds is crossed, making this a condition of continuing to receive federal aid.

What the Report Has to Say

This isn't a quick email; the report needs details. Schools must identify the name and country of origin of the foreign source. If money was received, they have to state the exact amount and, crucially, any strings or conditions attached to that money. If it was a contract, they have to spell out the terms and conditions of that agreement. For example, if a foreign-based tech company contracts with a school district to provide curriculum software worth $12,000, the district has to report the company, its country, and what the contract entails.

More Paperwork for Principals, Less Mystery for the Feds

On one hand, this bill is about transparency. The goal is to give the federal government a clear look at where outside money is coming from and what influence it might be buying in K-12 education. This mirrors similar, long-standing reporting requirements already in place for colleges and universities. The idea is to catch any potentially problematic foreign influence early.

On the other hand, this means a new administrative lift for public school districts already stretched thin. That $10,000 threshold is pretty low. A small, one-time grant for a language program or a minor contract for specialized equipment could easily trip that wire. For the busy school administrator, this is one more compliance box to check, one more report to file, and one more way to potentially lose federal funding if the paperwork isn't perfect. The bill uses existing definitions for terms like “foreign source” and “federal financial assistance,” so while the language is specific, the real-world impact is an increase in required tracking and reporting for every public school that accepts federal aid.