HouseH.R. 9123119th Congress

Espionage Prevention Act

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[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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