An unprecedented surge in foreign funding has poured into American universities, raising alarms over national security and ideological influence. Authoritarian regimes, notably China and Qatar, have funneled billions into institutions like Harvard, Yale, and Texas A&M, often without proper disclosure. Investigations reveal that these funds may be linked to increased antisemitism and anti-American sentiments on campuses.
In response, President Donald Trump signed an executive order in April 2025 mandating full transparency of foreign donations to U.S. colleges. The order requires universities to disclose the true source and purpose of all foreign funds, aiming to protect American educational and national security interests. Non-compliant institutions risk losing federal funding.
The administration’s actions follow reports that universities have failed to report substantial foreign contributions. For instance, Cornell University reportedly did not disclose over $1.2 billion in foreign funds to U.S. authorities. The University of California, Berkeley, is also under investigation for potential violations of federal foreign funding disclosure regulations, including a $240 million joint tech venture with China’s Tsinghua University.
Critics argue that such undisclosed foreign funding compromises academic freedom and exposes students to foreign propaganda. The National Association of Scholars reports that American universities rarely disclose gifts from foreign governments, opening institutions to foreign coercion through billions of “ghost dollars.”
These latest moves come as the White House continues its crackdown on diversity, equity, and inclusion (DEI) initiatives at many universities, which it views as vehicles for foreign ideological influence. New policies aim to dismantle DEI programs and promote merit-based admissions and intellectual diversity. As the administration intensifies enforcement of Section 117 of the Higher Education Act, universities are under pressure to comply with transparency requirements or face significant financial consequences.