Relating to contracts with and the acceptance of money from certain foreign sources by public schools and public institutions of higher education; providing civil penalties.

SB 2821 prohibits Texas public schools and institutions of higher education from entering contracts or accepting money from "foreign adversaries," defined as China, Iran, North Korea, Russia, or other countries designated under U.S. law. It specifically bans agreements involving research partnerships, student exchanges, faculty collaborations, or intellectual property sharing with entities controlled by these governments. Violations could result in civil fines of 5-10% of a school district’s state funding for first offenses, or 20% for repeat violations, enforced by the attorney general. The bill directly affects school districts and universities that receive state funding, requiring them to review existing and future partnerships with foreign entities. It does not apply to general donations from individuals or organizations not tied to designated foreign governments.