H.R. 9123 — Espionage Prevention Act

This section prohibits institutions of higher education from receiving funds from any intelligence community element if they maintain a relationship with a covered entity, including a Confucius Institute, Thousand Talents Program, Chinese university of concern, or entity on the 1260H list. The restriction takes effect in the first fiscal year beginning after 12 months from enactment, unless the relationship is terminated. The Director of National Intelligence may grant case-by-case waivers for up to one year, renewable annually, if the institution maintains safeguards and the relationship serves U.S. national security interests or poses no risk. The Director must provide outreach and technical assistance and submit annual reports to the congressional intelligence committees beginning 18 months after enactment.