The letter from the American Council on Education (ACE), addressed to senior officials at the U.S. Department of Education (ED), conveys appreciation for updates regarding the management and reporting requirements of Section 117 of the Higher Education Act, which pertains to the disclosure of foreign gifts and contracts by higher education institutions. ACE acknowledges the helpfulness of the June 23 virtual meeting and welcomes ED’s planned actions, including closing outstanding Section 117 investigations, addressing issues with the reporting portal, and transferring Section 117 management back to Federal Student Aid (FSA). The letter also requests ongoing engagement and improved communication, such as access to the new responsible office and the opportunity for further dialogue about persistent points of confusion, notably distinctions between “cash in” and conditional value in reporting requirements.
ACE expresses significant concern over what it characterizes as a broadening of Section 117 reporting requirements, comparable to the expansions contemplated in 2019, which, in ACE’s view, were not supported by the statute nor responsive to community feedback. The organization also objects to ED’s interpretation linking Section 117 compliance to institutions’ eligibility for Title IV federal student aid under Program Participation Agreements, urging a reconsideration of this position as exceeding statutory authority. Moreover, the recent CHIPS and Science Act introduces additional reporting requirements that reference Section 117 definitions, underscoring the need for clarity and stakeholder engagement. In closing, ACE calls for continued collaboration and improvements to Section 117’s administration, emphasizing transparency, effective statutory implementation, and timely portal enhancements to better serve higher education institutions’ compliance needs.
