This legislation, titled the "DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act," aims to prohibit the Department of Homeland Security (DHS) from providing funds to institutions of higher education that have a relationship with a Confucius Institute, the Thousand Talents Program, or certain designated "Chinese entities of concern." These restrictions will take effect 12 months after the bill's enactment, making institutions ineligible for DHS funding unless they terminate such relationships. A "Chinese entity of concern" is broadly defined to include universities or colleges in the People's Republic of China involved in military-civil fusion, the Chinese defense industrial base, or activities that undermine U.S. national security interests, such as supporting intelligence organizations or enabling human rights abuses like the detention of Uyghur Muslims. The bill allows the Secretary of Homeland Security, in consultation with the Director of National Intelligence, to issue a one-year waiver if the relationship serves U.S. national security interests or poses no direct risk, provided the institution maintains robust safeguards against unauthorized access to sensitive research. Institutions can regain eligibility for DHS funding by terminating the problematic relationships. The Secretary may annually renew waivers and is required to notify Congress 30 days prior to issuing or renewing any waiver, including a justification. Furthermore, DHS is mandated to provide outreach and technical assistance to institutions regarding compliance and must submit annual reports to Congress on the implementation of these provisions.