Espionage Prevention Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9123 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9123

      To establish intelligence community funding restrictions on
institutions of higher education that have a relationship with certain
  entities in the People's Republic of China, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 3, 2026

  Mr. Fallon introduced the following bill; which was referred to the
               Permanent Select Committee on Intelligence

_______________________________________________________________________

                                 A BILL

      To establish intelligence community funding restrictions on
institutions of higher education that have a relationship with certain
  entities in the People's Republic of China, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Espionage Prevention Act''.

SEC. 2. FUNDING RESTRICTION ON INSTITUTIONS OF HIGHER EDUCATION THAT
              HAVE A RELATIONSHIP WITH CERTAIN ENTITIES OF THE PEOPLE'S
              REPUBLIC OF CHINA.

    The National Security Act of 1947 (50 U.S.C. 3001 et seq.) is
amended by inserting after section 121 (50 U.S.C. 3061) the following
new section (and conforming the table of contents at the beginning of
such Act accordingly):

``SEC. 121A. FUNDING RESTRICTION ON INSTITUTIONS OF HIGHER EDUCATION
              THAT HAVE A RELATIONSHIP WITH CERTAIN ENTITIES OF THE
              PEOPLE'S REPUBLIC OF CHINA.

    ``(a) Definitions.--In this section:
            ``(1) Covered entity.--The term `covered entity' means a
        Confucius Institute, Thousand Talents Program, Chinese
        university of concern, or entity on the 1260H list.
            ``(2) Chinese university of concern.--The term `Chinese
        university of concern' means any university or college in the
        People's Republic of China that--
                    ``(A) is involved in the implementation of
                military-civil fusion;
                    ``(B) participates in the Chinese defense
                industrial base;
                    ``(C) is affiliated with the Chinese State
                Administration for Science, Technology and Industry for
                the National Defense;
                    ``(D) receives funding from any organization
                subordinate to the Central Military Commission of the
                Chinese Communist Party;
                    ``(E) provides support to any security, defense,
                police, or intelligence organization of the Government
                of the People's Republic of China or the Chinese
                Communist Party;
                    ``(F) purposefully undermines the United States
                relationship with Taiwan;
                    ``(G) aids, abets, or enables the detention,
                imprisonment, persecution, or forced labor of Uyghur
                Muslims in the People's Republic of China;
                    ``(H) willfully and knowingly engages in malicious
                activities, including online disinformation campaigns
                and propaganda, for the purpose of interfering with
                United States Federal, State, or local elections; or
                    ``(I) is affiliated with the Chinese Academy of
                Sciences.
            ``(3) Confucius institute.--The term `Confucius Institute'
        means a cultural institute funded by the Government of the
        People's Republic of China.
            ``(4) Institution of higher education.--The term
        `institution of higher education' has the meaning given such
        term in section 102 of the Higher Education Act of 1965 (20
        U.S.C. 1002).
            ``(5) Relationship.--The term `relationship' means, with
        respect to an institution of higher education, any contract
        awarded to or from, agreement entered into with, or in-kind
        donation or gift received from, any covered entity.
            ``(6) Thousand talents program.--The term `Thousand Talents
        Program' means any technological or educational program funded
        or administered by the Chinese Communist Party's Ministry of
        Industry and Information Technology.
            ``(7) 1260H list.--The term `1260H list' means the list of
        Chinese military companies operating in the United States most
        recently submitted under section 1260H(b)(1) of the William M.
        (Mac) Thornberry National Defense Authorization Act for Fiscal
        Year 2021 (10 U.S.C. 113 note).
    ``(b) Restrictions on Institutions of Higher Education.--Except as
provided by subsection (c), beginning with the first fiscal year that
begins after the date that is 12 months after the date of the enactment
of this section, the Director of National Intelligence shall ensure
that an institution of higher education (referred to in this subsection
as an `institution') which has a relationship with a covered entity is
ineligible to receive any funds from any element of the intelligence
community, unless the institution terminates its relationship with the
covered entity. Upon termination of any such relationship, the
ineligibility imposed under this section shall no longer apply.
    ``(c) Waiver.--
            ``(1) In general.--The Director of National Intelligence,
        on a case-by-case basis and for a period not to exceed one
        year, may waive the application of the restriction under
        subsection (b) with respect to an institution of higher
        education if the Director determines--
                    ``(A) the institution maintains robust safeguards
                and enforcement protocols to monitor the relationship
                with a covered entity, including active measures to
                detect and deter attempts by Chinese nationals
                affiliated with a covered entity to gain unauthorized
                access to sensitive research, data, or federally funded
                development activities conducted at or on the premises
                of, or by, such institution; and
                    ``(B) either--
                            ``(i) the relationship is in the national
                        security interests of the United States; or
                            ``(ii) the relationship does not present a
                        direct or indirect national security risk to
                        the United States or the allies of the United
                        States.
            ``(2) Renewal.--On an annual basis, the Director may renew
        a waiver issued under paragraph (1) if the Director determines
        all of the conditions described in such paragraph continue to
        be satisfied.
            ``(3) Effective dates.--A waiver issued or renewed pursuant
        to paragraph (1) or (2), respectively, takes effect and applies
        beginning on the date that is 30 days after such issuance or
        renewal, as the case may be.
            ``(4) Notification.--If the Director issues or renews a
        waiver pursuant to paragraph (1) or (2), respectively, not
        later than 30 days before such issuance or renewal, as the case
        may be, takes effect, the Director shall submit to the
        Permanent Select Committee on Intelligence of the House of
        Representatives and Select Committee on Intelligence of the
        Senate written notification regarding such issuance or renewal,
        including a justification relating thereto.
    ``(d) Assistance.--The Director of National Intelligence shall
provide outreach and, upon request, technical assistance to
institutions of higher education relating to compliance with this Act.
    ``(e) Assistance.--The Director of National Intelligence shall
provide outreach and, upon request, technical assistance to
institutions of higher education relating to compliance with this
section.
    ``(f) Reports.--Not later than 18 months after the date of the
enactment of this section and annually thereafter, the Director of
National Intelligence shall submit to the congressional intelligence
committees a report regarding implementation of this section during the
immediately preceding 12-month period. Each such report shall include
information relating to the following:
            ``(1) Any institution of higher education that has a
        relationship with a covered entity and receives funds from any
        element of the intelligence community.
            ``(2) The implementation of subsections (b) and (d).''.
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