President Trump demands transparency from American universities receiving billions in foreign funding, threatening to cut federal aid for those who fail to comply with disclosure rules.
At a Glance
- Trump signed an executive order enforcing transparency on foreign funding to American universities
- Elite institutions have failed to disclose over $6.5 billion in foreign funds from countries like China and Arab states
- Universities must now provide detailed information about foreign funding sources or risk losing federal funding
- The order tasks Education Secretary Linda McMahon with reversing Biden-era policies that obscured foreign influence
- Investigations revealed that from 2010-2016, universities concealed over half of reportable foreign gifts
Cracking Down on Hidden Foreign Influence
President Donald Trump signed an executive order on April 23, 2025, mandating stricter transparency and compliance measures for American universities receiving foreign funding. The order aims to enforce existing laws under Section 117 of the Higher Education Act of 1965, which requires institutions to disclose foreign gifts and contracts exceeding $250,000. Despite these requirements being on the books for decades, enforcement has been notoriously lax, allowing billions in foreign funds to flow into elite American universities with minimal oversight.
The executive order specifically targets prestigious institutions like Harvard, Cornell, Carnegie Mellon, and the University of Pennsylvania, which have accepted significant foreign funding from countries including China and various Arab states. These institutions now face the prospect of losing federal funding if they fail to provide comprehensive disclosures about their foreign financial relationships. The administration has highlighted that transparency is essential to safeguard American academic independence and protect national interests.
— The White House (@WhiteHouse) March 10, 2025
Billions in Undisclosed Foreign Money
Federal investigations conducted between 2019 and 2021 uncovered a staggering $6.5 billion in previously undisclosed foreign funds flowing into American universities. The executive order cites alarming statistics showing that from 2010 to 2016, universities failed to report more than half of all foreign gifts that legally required disclosure. This systematic failure has allowed foreign entities to gain influence over American higher education with little public awareness or scrutiny.
The White House has expressed particular concern about Harvard University’s compliance with disclosure laws. This action follows Trump’s earlier move to suspend over $2 billion in federal grants to Harvard over alleged antisemitism and admission policy concerns. The administration contends that the previous Biden administration deliberately weakened enforcement mechanisms by moving investigatory responsibilities to less equipped departments, effectively undermining transparency efforts.
Enforcement and Consequences
Under the executive order, Education Secretary Linda McMahon is directed to rigorously enforce disclosure requirements and reverse policies that have allowed secrecy around foreign funding. Universities must now provide detailed information about foreign funding sources, amounts, and purposes, with this information made readily accessible to the public. Non-compliance will trigger accountability measures including audits, investigations, and potential loss of federal funding.
White House staff secretary Will Scharf emphasized that the administration is primarily focused on enforcing existing laws rather than creating new regulations. The Department of Education has already put 60 colleges on notice regarding potential federal funding cuts over various compliance issues, including antisemitism concerns. This executive order represents part of a broader series of educational reforms, which include reviewing college accreditation processes and allowing greater flexibility in student discipline procedures.
The executive order stands as a firm declaration that American universities must maintain independence from foreign influence while upholding transparency in their financial relationships. It reinforces the principle that institutions receiving taxpayer support must fully comply with disclosure requirements designed to protect America’s educational integrity and national security interests.
