EXCLUSIVE: Bill Demands Accountability for Universities’ Investments in Foreign Adversaries

FIRST ON THE DAILY SIGNAL—Rep. Burgess Owens introduced a bill on Wednesday to hold private universities accountable for investments they make in entities located in hostile foreign countries.

“It is unacceptable for American universities to funnel millions to foreign adversaries without transparency or accountability,” the Republican congressman from Utah told The Daily Signal.

The Reporting on Investments in Foreign Adversaries Act requires that private universities with endowments above $6 billion or with more than $250 million in investments disclose their financial relationships with foreign adversaries of the United States.

Universities that fail to comply would be fined an amount corresponding to the value of investments held or sold by the institution.

“The Reporting on Investments in Foreign Adversaries (RIFA) Act requires private institutions to disclose financial ties to hostile foreign entities, protecting our national security and the integrity of our education system,” Owens said. “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.”

There’s evidence that some universities have invested in entities in countries like China. Bloomberg reported in 2022 that Harvard University’s endowment was considering reducing its investments in China.

On Tuesday, Owens and Rep. Mark Harris, R-N.C., co-sponsored another bill to require universities to disclose any contracts they have with foreign adversaries to the federal Department of Education.

The No Contracts for Foreign Adversaries Act would mandate that universities alert the Education Department of contracts with China, Russia, North Korea, or Iran in order to combat attempts from adversaries to target American students and schools.

If the Reporting on Investments in Foreign Adversaries Act passes, colleges and universities will be required to list investments of concern that are purchased, sold, or held during the calendar year.

They would also be required to report the aggregate fair market value of all investments of concern held as of the close of the calendar year; the combined value of all investments of concern sold over the calendar year, as measured by the fair market value of such investments at the time of the sale; and the combined value of all capital gains from sales of investments of concern.

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