a Congress of the United States House of Representatives ‘Wlashington, BE 20815-1403 June 17, 2021 ‘The Honorable Miguel Cardona Secretary US. Department of Education 400 Maryland Avenue, $.W. ‘Washington, D.C, 20202 Dear Secretary Cardona, ‘We write to express concern and request information regarding the Department of Education's (Department) administration of Section 117 of the Higher Education Act (HEA), which requires higher education institutions to disclose larg gifts and contracts from overseas sources to the Department. ‘As you know; information about these financial arrangements gives both Congress and the federal government valuable insight into possible security risks and conflicts of interest posed by foreign governments’ financial tes to U.S. colleges and universities. The Deparment's Office of General Counsel described the issue suecinely, as follows: ‘The disclosure mandated by Section 117, and the laws robust enforcement, are essential bbeeause hostile governments and their instramentalities have targeted the higher ‘education sector for exploitation to infiltrate cuting-edge American research projects, influence curricula, and gain access to systems and information available through ‘overseas “campuses” that receive less rigorous oversight than their domestic ‘counterparts. Additionally, they recruit top American talent through talent programs or academic exchanges.' Moreover, in 2018, the federal government invested $149 billion of taxpayer funds in colleges and universities." The American public deserves to know that their money isnot being. ‘compromised by Communist China and other adversarial nations. Ypnonal Compliance with Scion 117 of the Higher Education Ae of 196." US. Depanmont of Ecsion, Orfce of General Counsel, October 2020 gs. hiheresfinsatins-comalian sion 7 Federal teen Higher Education. USAspeeding Daa Lab, psa asasending vlc an rssicon 2Omuch 20s Mesa ia sepese ning AN 225701 Mader STENExamples ofthe treats posed by our adversaries to American universities are well documented.* Confucius institutes, once present at hindeds of American universities and colleges, have been used by Communist China t contol curriculum, censor politcal debate, ard oversee teacher hiring, event selection, and speaker engagements In 2020, a Harvard University professor who received more than $15 million in grant funding from the Nationa Institute of Health and the Department of Defense was indicted for concealing his ole as & “strategic scientist” forthe Chinese government which paid him a $50,000 monthly stipend, over $150.00 i living expenses, and provided him $1.5 million to establish a research lab in China Farther, a federal ‘rand jury recently expanded charges against a Stanford University researcher alleged to bea member of China's People's Liberation Army.*’The FBI warmed colleges a decade ago about how hostile actors use campuses for spying, propaganda hubs, and faculty eeruitment.” Unfortunately, 100 many institutions filed to take this warning seriously. For decades, colleges and universities failed to comply with statutory ranspreneysequiements. ‘The previous administration modernized the reporting process and found over $6. billion in unreported gifts and contracts and opened 19 university invextigations.* However, the Department has closed only four of those investigation o date. Moreover, you have not started or provided status updates on any cher investigations into foreign gifts or contacts. We are concered by these fects, considering it was conveyed to Congres hat carer civil servants ‘he Deparunent and other agencies were supportive of Section 117 compliance and oversight?” ‘The Department must enforce the law and coordinate with other federal agencies to defend citizens from security threats. As Congress debates legislation to counter the threats posed by China and other adversarial nations, your commitment to carrying out the law is critical. The lack of progress we have seen on tis issue since your confirmation as Secretar is alarming, and we are concemed the Department isnot treating threats from China and other adversarial nations seriously. To assuage our concers, please respond to these questions no laer than «wo weeks afler the date ofthis leer: >The Treat Posed bythe Chinese Government andthe Chinese Commis Party tthe Economic and Nevo Sec ote Ute eter". put oat Prd Bu oti ny 72. iereanae bd shines: govermetand he ine eam. 0 tioned a, i's Impact onthe US. Education Sytem: Executive Suma" Unite Sates Senate Commitee 08 Homeland See and Goverment Asis Permanent Sobeammitie on Investigations February 2,209. nisi hsga senate govimelmeiadnIPS1 7 20Re pe 220 Chins 2D mpac Mion sh SOUS. 206d ‘gallon20Sstsmoa ‘Snervard Unters Profesor and Two Cine Nationals Chrged in Thre Separate Chin Related Cases US. Deparen' of foste, Offic of Pail Aft, anary 28, 202s apace glopye fa busier qofesorand nosh nal charged hee pacha eae + Federal Oharges Again Stanford University Researcher Expanded” US. Dearne of ese Ofc of Poblle Afis Pebrary 19,2021 p/w une tha eal harp alone ‘gsatchercpanda Higher Education nd National Seer: Th Targcting of Scstive, Propitary and Cased Infomation on Conpuses of Higher Eaveton,” US. Deparen floc, Federal Bureau of lnvengaon, Apel 20. Huns goer cheesey view Sopa ote Seton 117 of he Higher Edveaton Aco 1568, Noe of Inveatgaton nd Records Redes. US. Deparment of Edson licsishcnac eosin uml *Leterto the Honocable Rob Portman. US. Deparment of Edseaton, Ofc of General Counsel anuoy 8, 2021. ‘uu nfo nt 20 pi‘© How many full-time equivalent staff do you have analyzing section 117 of the HEA’s foreign gift and contract disclosure requirements? Has this number changed inthe lat six months? ‘+ Did the January 31, 2021, reporting period find any previously unreported gifts or ‘contracts and, iF 50, what was the total amount? ‘What was the total amount of reported foreign gifts and contracts and how many new filers were a par of the January 31, 2021, reporting period? ‘= Have you opened any university investigations or subpoenaed any documents related to section 117 compliance? ‘= How do you intend to complete the 15 open university investigations? Please provide ‘written observations from the investigation review as was done in the October 2020, Institutional Compliance with Section 117 of the Higher Education Act of 1965, “OGC report.” ‘© What range of corective measures do you have to force noncompliant institutions to disclose foreign gifts and contracts? ‘+ What interagency memberships ate you working through and what agreements do you have in place to respond to potential adversarial nation security threats? Should you have questions about this letter, please email Chance Russell (Chaace,Russell@ mal house.gov), Mandy Schaumburg (Mandy. Schaumburg @ mui hous, gov) and Mary Christina Riley (MaryChristina.Riley@ mail,uouss,8av). We look forward to your timely response. . Pk US. House Committee on Education and Labor Republican Study Committee