US launches foreign funding investigation against University of Michigan

The U.S. Department of Education’s Office of the General Counsel (OGC) opened a foreign funding investigation into the University of Michigan (UM) after a review of the university’s foreign reports revealed inaccurate and incomplete disclosures.

Section 117 of the Higher Education Act of 1965, postsecondary institutions receiving federal financial assistance must disclose foreign source gifts and contracts with a value of $250,000 or more annually to the Department of Education.

Investigation of foreign funding in the University of Michigan is taking place following similar investigations against Harvard University and University of California, Berkeley.

“Despite the University of Michigan’s history of downplaying its vulnerabilities to malign foreign influence, recent reports reveal that UM’s research laboratories remain vulnerable to sabotage, including what the U.S. Department of Justice recently described in criminal charges as ‘potential agroterrorism’ by Chinese nationals affiliated with UM. As the recipient of federal research funding, UM has both a moral and legal obligation to be completely transparent about its foreign partnerships,” said Chief Investigative Counsel Paul Moore.

“Unfortunately, tens of millions of dollars in foreign funding in UM’s disclosure reports have been reported in an untimely manner and appear to erroneously identify some of UM’s foreign funders as ‘nongovernmental entities,’ even though the foreign funders seem to be directly affiliated with foreign governments. OGC will vigorously investigate this matter to ensure that the American people know the true scope of foreign funding and influence on our campuses,” added Moore.

To verify UM’s compliance with the law and the accuracy of its disclosures, ED’s investigation demands that UM produce certain records within 30 days starting July 15.

US authorities are seeking tax records related to foreign funding from January 1, 2020 to date. They also demanded detailed records of a university’s agreements, collaborations, and financial ties with foreign governments, institutions, and entities since January 1, 2020.

This investigation into UM reflects the Trump Administration’s ongoing efforts to hold colleges and universities accountable for failing to comply with federal disclosure laws on foreign funding, consistent with President Trump’s Executive Order on Transparency Regarding Foreign Influence at American Universities.

Section 117 of the Higher Education Act mandates disclosure of foreign gifts above $250,000 to federally funded universities and is intended to protect national security and academic integrity by curbing undue foreign influence in higher education. Noncompliant institutions risk DOJ enforcement, including civil actions.