No Contracts with Foreign Adversaries Act (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.

The bill requires ED to investigate possible violations of this bill and outlines the various penalties for each violation. Penalties may include losing eligibility for federal student financial aid.