Association Response to DoEd on Section 117 Reporting

The document is a formal letter from Terry W. Hartle, Senior Vice President for Government Relations and Public Affairs, representing various higher education associations, to Deputy Secretary Mitchell M. Zais of the U.S. Department of Education. The letter addresses ongoing concerns regarding the lack of clear guidance from the Department on the reporting requirements of Section 117 of the Higher Education Act, which mandates disclosure of foreign gifts and contracts. Despite previous correspondence and meetings on the issue, the associations find the Department’s July 3, 2019, response insufficient, as it fails to provide explicit and comprehensive instructions needed for institutions to achieve compliance. The letter notes that, more than thirty years after the enactment of Section 117, the Department still relies on outdated and vague materials, such as two limited "Dear Colleague" letters, rather than issuing formal regulations or answering direct questions.

The signatories express frustration that the Department appears poised to enforce ambiguous and obsolete requirements, potentially expanding the compliance scope without proper stakeholder input. They emphasize that clarity is especially critical, given the compliance sensitivity related to national security and academic freedom issues. The authors stress that rulemaking should involve transparent procedures and public comment to ensure fairness and effectiveness, in line with Secretary DeVos’s stated commitment to end "rule by letter." The letter closes by reaffirming higher education institutions’ willingness to comply with Section 117 and urging the Department to clarify reporting expectations through formal regulatory processes, thereby facilitating effective compliance and continued collaboration.