The Reporting on Investments in Foreign Adversaries (RIFA) Act requires that private universities with endowments above $6 billion or with more than $250 million in investments disclose their financial relationships with foreign adversaries of the United States.
With evidence showing that some universities have invested in entities in countries like China, Rep. Burgess Owens (R-Utah) introduced the measure to ensure that American students are not being indoctrinated by anti-American influences.
Elizabeth Mitchell of The Daily Signal agrees that it is unacceptable to pour millions into foreign adversaries, especially without accountability.
"That has been a big issue over the past few years," she notes. "Not only are universities having contracts with foreign adversaries, but they also are investing into companies that are in these foreign countries."
She cannot see why any American universities would want to do that.
"I think it's very suspicious that these adversaries have found a way to be involved in United States education," Mitchell says. "I'm glad it's something that the United States might be investigating."
Just prior to this bill, Owens and Rep. Mark Harris (R-North Carolina) co-sponsored the No Contracts for Foreign Adversaries Act to require schools to disclose to the Department of Education any contracts they have with foreign adversaries.
Mitchell explains that if RIFA passes, colleges and universities will be required to list investments of concern that are purchased, sold, or held during the calendar year. They would also have to report the aggregate fair market value of all investments of concern held as of the close of the calendar year; the combined value of all investments of concern sold over the calendar year, as measured by the fair market value of such investments at the time of the sale; and the combined value of all capital gains from sales of investments of concern.
Universities that fail to comply would be fined an amount corresponding to the value of investments held or sold by the institution.
