H.R. 938: No Contracts with Foreign Adversaries Act

This bill prohibits institutions of higher education (IHEs) from entering into contracts with a foreign country of concern (e.g., North Korea, China, Russia, or Iran) or with a foreign entity of concern (e.g., a foreign entity that is owned or controlled by North Korea, China, Russia, or Iran) without obtaining a waiver.

The bill outlines the process by which an IHE may receive a waiver from the Department of Education (ED) to enter into a contract with a foreign country of concern or with a foreign entity of concern. Specifically, an IHE that desires to enter into such a contract may submit to ED, not later than 120 days before the IHE enters into such a contract, a request to waive the prohibition with respect to the contract. Generally, a waiver issued under this bill shall only waive the prohibition for a one-year period (subject to renewals). Additionally, the bill requires ED to notify Congress of the intent to issue a waiver, including a justification for the waiver.

The bill also requires an IHE that has already entered into a contract prior to the bill's enactment to submit a waiver request to ED within 30 days of the bill's enactment.

Written by the Congressional Research Service, Library of Congress.