A bill to require audits of institutions with respect to disclosures of foreign gifts, and for other purposes.

S 1684 requires the U.S. Department of Education to audit colleges and universities every two years to verify compliance with foreign gift and contract reporting rules, prioritizing institutions with large endowments, prior noncompliance, or significant foreign ties. It also imposes a 300% tax on income from foreign countries of concern for qualifying institutions (those with over 500 U.S. students and more than 50% of tuition-paying students in the U.S.) and an 110% tax on unreported foreign funding identified through audits. These provisions directly affect large colleges and universities receiving foreign contributions, particularly those meeting the prioritization criteria for audits. The bill aims to increase transparency in foreign financial relationships with higher education through mandatory audits and financial penalties for noncompliance.