The Espionage Prevention Act restricts intelligence community funding to U.S. colleges and universities that have relationships with certain Chinese entities, including Confucius Institutes, the Thousand Talents Program, Chinese universities involved in military development, and companies on the Department of Defense's military companies list. The bill defines "relationship" broadly to include contracts, agreements, or donations from these covered entities, and colleges would have 12 months after the bill's enactment to sever such ties or lose eligibility for any intelligence community funds. The Director of National Intelligence can grant case-by-case waivers for up to one year if an institution has strong safeguards in place and the relationship poses no national security risk, with waivers renewable annually and subject to congressional notification. The Director must provide technical assistance to help colleges comply and submit reports to Congress within 18 months and annually thereafter detailing which institutions maintain these relationships and how the restrictions are being implemented.
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