The proposed bill aims to restrict state institutions of higher education in Michigan from engaging in agreements or accepting grants from foreign countries deemed as "countries of concern," which include nations such as China, Russia, Iran, and others. Specifically, the bill prohibits these institutions from entering into contracts that could compromise their autonomy or promote agendas harmful to U.S. safety and security. Additionally, it mandates that any cultural exchange agreements with these foreign entities must be reviewed by the U.S. Department of State or relevant federal agencies to ensure they do not pose a threat to national security.

Furthermore, the bill establishes stringent requirements for receiving gifts from foreign sources, necessitating a formal gift agreement that outlines the purpose of the gift, any conditions attached, and the identities of the parties involved. Institutions must report gifts valued at $50,000 or more biannually, and the information disclosed will be subject to public access under the Freedom of Information Act. The bill also empowers the attorney general to enforce compliance, with civil penalties for institutions that fail to disclose required information. The act is set to take effect on July 1, 2025, and repeals previous legislation related to this matter.