Federal Funds for Colleges Now Tied to Rejecting Gifts from Certain Countries, Starting 2025

The 'No Foreign Gifts Act of 2025' directly prohibits colleges and universities that receive any federal funding from accepting gifts from countries designated as supporters of foreign terrorist organizations. It also specifically names China, Russia, North Korea, and Iran as prohibited sources. To keep their federal funding, institutions must report any offered gifts from these countries to the Secretary of State. (SEC. 2)

Cash and Classrooms

The core change is straightforward: if a university takes money from a listed country, it risks losing all federal funding. This includes not only direct financial gifts but could extend to other forms of support that fall under the definition of 'material support,' a term borrowed from section 2339A(b) of title 18, United States Code, dealing with providing support to terrorists. The bill hinges on designations made by the Secretary of State, using definitions from the Immigration and Nationality Act (section 219) to identify foreign terrorist organizations. (SEC. 2)

Real-World Ripple Effects

Imagine a scenario: a university with a prominent international studies program receives a large donation offer from a Chinese foundation to establish a new research center. Under this law, accepting that gift, even if intended for academic purposes, could jeopardize all federal funding the university receives, impacting everything from financial aid for students to research grants for professors. Another example: a researcher collaborating with a Russian university on a climate change project might find their institution forced to cut ties if the project involves any form of financial exchange that could be considered a 'gift.'

The Tricky Part

While the intent is to curb foreign influence and potential support for terrorism, the practical application could get messy. Universities with extensive international partnerships, particularly those involving research collaborations or student exchange programs, may face tough choices. What counts as a 'gift' in all situations is not fully defined, and the requirement to report all offers, even if rejected, adds an administrative layer. The bill's reliance on the Secretary of State's designations also means that the list of prohibited countries could change based on shifting geopolitical landscapes, requiring constant vigilance from university administrators.

Bigger Picture

This law slots into a broader trend of increasing scrutiny on foreign influence in U.S. institutions. It links directly to existing laws on supporting terrorism (18 U.S.C. 2339A(b)) and designating terrorist organizations (Immigration and Nationality Act, section 219). The long-term effects could range from a chilling effect on international academic collaboration to increased protection of intellectual property developed with federal funds. The challenge will be balancing national security concerns with the benefits of global academic exchange.