H.R. 938 — No Contracts with Foreign Adversaries Act

This section amends the Higher Education Act of 1965 by inserting a new section 117A to prohibit institutions of higher education from entering into contracts with a foreign country of concern or foreign entity of concern. The section authorizes the Secretary of Education to issue one-year waivers (renewable for additional one-year periods), which an institution may request by submitting, at least 120 days prior to contract execution or renewal, the full proposed contract text (translated into English if necessary) and a compliance officer-certified statement demonstrating benefits to the institution's mission and students and to U.S. security, stability, and economic vitality. The Secretary must consult specified federal officials—including the Directors of the FBI, National Intelligence, CIA, and others—before issuing a waiver and notify relevant congressional committees at least two weeks in advance; for initial requests, the Secretary notifies the institution of approval or denial at least 60 days prior to contract execution. The section requires institutions to terminate (1) any contract with a previously undesignated foreign source within 60 days of its designation as prohibited and (2) pre-enactment contracts with prohibited parties upon waiver expiration (with mandatory 30-day post-enactment waiver requests and transitional one-year waivers, renewable). Institutions seeking waivers must designate a compliance officer.