New Education Bill Mandates FBI Review of All Foreign College Gifts, Reporting Threshold Drops to $0 for 'Covered Nations'

This new piece of legislation, officially the Safeguarding American Education From Foreign Control Act, fundamentally changes how U.S. colleges and universities must report financial relationships with foreign entities. Essentially, it tightens the leash on foreign money flowing into higher education by lowering reporting thresholds and immediately involving national security agencies.

The New Rules of Disclosure: Tiers and Timelines

Starting now, colleges must send disclosure reports to the Department of Education twice a year—by January 31st and July 31st—detailing any gifts or contracts they receive from foreign sources (Sec. 2). The big change is the reporting threshold, which now depends on where the money comes from. If the foreign source is not from a designated “covered nation,” the school only has to report the money if the total hits $250,000 or more during the calendar year. This is the standard reporting tier.

But here’s the kicker: If the foreign source is from a “covered nation”—a term defined elsewhere in military law (Title 10, U.S. Code)—the reporting threshold drops to any value. That means a college must report a $500 gift, a small research contract, or even a free lunch if it comes from a source associated with one of these nations. This provision creates a significant administrative burden and clearly targets specific countries for intense scrutiny, likely chilling academic engagement with those regions.

Your Tuition Dollars and the FBI

Perhaps the most impactful change for everyday citizens concerned about privacy and government reach is what happens after the Department of Education gets these reports. The bill mandates that the Secretary of Education must share a copy of every single disclosure report, document, and record with the Director of the FBI and the Director of National Intelligence (DNI) within 10 days of receiving it (Sec. 2). This turns the Department of Education, which usually handles student aid and accreditation, into a direct data pipeline for federal law enforcement and intelligence agencies.

Furthermore, the bill isn't just about future reporting. It requires the Department of Education to hand over all historical records and internal investigation documents related to foreign funding disclosures that they currently hold to the FBI and DNI within 90 days of the act's enactment (Sec. 2). This is a massive data dump of years of institutional financial details, moving information originally intended for educational oversight directly into the hands of national security apparatuses. For students and faculty, this means that the financial health and foreign research ties of their university are now under constant review by intelligence agencies.

The Real-World Impact on Research and Costs

While the stated goal of this act is safeguarding education from foreign control—a clear national security benefit—the practical challenges for universities are substantial. Colleges now have a massive compliance job on their hands, especially those with robust international research programs or significant foreign student populations. Imagine a large public university that receives hundreds of small grants or gifts from around the world; tracking and reporting every single one from a “covered nation” will require significant new staffing and resources.

Who pays for that extra administrative burden? Ultimately, it's likely students through increased tuition or taxpayers through reduced institutional efficiency. Moreover, the fear of being flagged by the FBI or DNI might cause universities to simply avoid engaging with certain foreign entities altogether, potentially limiting global research collaboration, particularly in fields like technology or medicine, where foreign partnerships are often crucial for advancement. This law introduces a heavy layer of national security oversight into the everyday operations of academic institutions, potentially trading some academic freedom and efficiency for increased transparency.