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The Department proposes a regulation requiring submission of true copies of original agreements memorializing statutorily defined gifts, contracts, and/or restricted and conditional gifts or contracts from or with defined foreign sources by institutions, the value of which gifts or contracts is $250,000 or more (considered alone or in combination with other gifts from or contracts with that foreign source to the institution within a calendar year). The proposed regulation would make the submission of these true copies part of institutions’ semiannual disclosure reports filed with the Secretary of Education, pursuant to the requirements of Section 117 of the HEA. This proposed regulation is necessitated by the ongoing failure of many institutions to comply with the statutory mandate that institutions accurately and fully report covered gifts and contracts from foreign sources in a timely manner. Departmental and other investigations have uncovered persistent underreporting by institutions of statutorily defined gifts, contracts, and/or restricted and conditional gifts or contracts from or with statutorily defined foreign sources.

Statement of Need:

This proposed regulation is designed to improve institutions' compliance with the statutory mandate to accurately and fully report covered gifts and contracts from foreign sources in a timely manner.

Summary of the Legal Basis:

Under Section 117 of the Higher Education Act of 1965, the Department has a statutory duty to verify accurate and timely institutions’ compliance with statutory reporting requirements.

Alternatives:

These are discussed in the preamble of the proposed regulations. 

Anticipated Costs and Benefits:

These are discussed in the preamble of the proposed regulations.

Risks:

These are discussed in the preamble of the proposed regulations.