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):

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).