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 countries must be reviewed by the U.S. Department of State or relevant federal agencies to ensure they do not pose risks to national security.

Furthermore, the bill establishes stringent requirements for receiving gifts from foreign sources, necessitating formal gift agreements that detail 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 to their governing boards biannually, and these reports will be subject to public disclosure under the Freedom of Information Act. The Attorney General is empowered to enforce compliance with these regulations, with penalties for non-disclosure of gifts potentially resulting in civil fines. The bill also repeals certain existing laws related to this matter.