A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "FOREIGN INFLUENCE OPERATIONS OUT OF AMERICAN EDUCATION ACT" BY ADDING SECTION 59-101-425 SO AS TO PROHIBIT PUBLIC INSTITUTIONS OF HIGHER LEARNING FROM SOLICITING OR ACCEPTING CERTAIN GIFTS OR TRAVEL FROM FOREIGN ADVERSARY NATIONS, FOREIGN PRINCIPALS, OR FOREIGN TERRORIST ORGANIZATIONS, TO RESTRICT FOREIGN INFLUENCE ON HIRING, CURRICULUM, AND CAMPUS ORGANIZATIONS, AND TO REQUIRE DISCLOSURE OF GIFTS AND CONTRACTS FROM FOREIGN COUNTRIES AND FOREIGN PRINCIPALS TO THE OFFICE OF THE STATE TREASURER.
H5504 creates the “Foreign Influence Operations Out of American Education Act” and adds a new section to the South Carolina Code governing public institutions of higher learning. The bill prohibits state-supported colleges, universities, and technical institutions, along with their affiliate organizations, from soliciting or accepting gifts, grants, contracts, research sponsorships, endowments, awards, program agreements, formal partnerships, donations, or professional travel from a “foreign adversary nation,” a foreign principal of such a nation, or a foreign terrorist organization. It also bars cultural exchange agreements with foreign adversary nations or their principals, restricts foreign entities from influencing hiring, curriculum, school policy, or student and faculty expression, and requires student or scholar organizations to end affiliations if they coordinate with prohibited foreign entities.
The bill also establishes a disclosure and oversight regime for foreign funding. Public institutions must report certain gifts or contracts from foreign countries or foreign principals to the Office of the State Treasurer if the value is at least $10,000 or if related transactions total at least $50,000 in a 12-month period. Reports must include donor identity, country of origin, funding source, value, purpose, contract terms, and due diligence results, and must be filed in a searchable digital format within one month. The State Treasurer must maintain a public online database and provide annual summary reports to legislative and executive officials. The Inspector General and Attorney General are given enforcement roles, and the Treasurer must audit a random sample of at least 10% of institutions each year.
The bill further creates a nine-member Committee to Review Foreign Contributions, with appointments split among the House, Senate, and Governor. That committee must establish criteria for prohibited entities, identify foreign nations or principals funding South Carolina institutions, and report annually to the General Assembly. Institutions may seek waivers to accept otherwise prohibited gifts if they can show the donation will not enable foreign influence, and any waivers must be disclosed in the committee’s annual report. The act includes a severability clause and would take effect July 1, 2027, applying only to funding relationships entered on or after that date.
The overall sentiment reflected in the available voting history is strongly favorable in the House, with the bill passing 87-12 on April 29, 2026, and then 101-0 on April 30, 2026. No committee transcripts were provided, so there is no recorded debate to indicate detailed arguments for or against the measure. The vote pattern suggests broad bipartisan support, with only limited opposition on the first passage and unanimous approval on the second.
The main points of contention apparent from the bill itself are the breadth of the foreign funding restrictions and the administrative burden of compliance. The bill’s definitions are expansive, covering indirect gifts and contracts routed through intermediaries, and its limits could affect international student recruitment, research partnerships, donor relationships, and institutional autonomy. Fiscal notes indicate most institutions expect manageable or minimal impacts, but USC anticipates added review and compliance costs and a possible reduction in tuition revenue, while the State Treasurer’s Office expects to need additional staff and funding for audits. These concerns suggest the primary debate is likely between foreign-influence safeguards and the practical effects on higher education operations and international engagement.
The bill would add Section 59-101-425 to Title 59 of the South Carolina Code, creating new legal restrictions on public institutions of higher learning and their affiliated organizations. It would prohibit acceptance of certain foreign gifts and travel, bar foreign influence over campus governance and academics, require disclosure of qualifying foreign gifts and contracts to the State Treasurer, and establish public reporting, auditing, and enforcement mechanisms. It also creates a new committee to identify prohibited foreign funding sources and administer waivers, thereby expanding state oversight of higher education financing and foreign relationships.
The available voting record shows strong support for the bill in the House, including a near-supermajority passage followed by unanimous passage on reconsideration or a subsequent vote. No committee discussion transcripts were provided, so there is no direct record of floor or committee arguments. Based on the votes and the bill’s advancement, the general sentiment appears favorable, with broad agreement on the goal of limiting foreign influence in public higher education.
The likely areas of contention are the scope of the prohibitions, the definition of covered foreign entities and gifts, and the administrative and financial burden on institutions. Universities may be concerned about restrictions on research funding, donor relationships, international travel, and recruitment of foreign students, as well as the need for enhanced screening, reporting, and audits. The State Treasurer’s Office also anticipates new staffing costs, and USC’s fiscal note suggests the bill could delay approvals and reduce revenue. Supporters likely view these burdens as necessary to protect academic independence and transparency, while critics may view the bill as overly broad or disruptive to legitimate international academic activity.