New Executive Order Demands Transparency in Foreign Funding of U.S. Higher Education

A new executive order from President Donald Trump takes aim at billions of dollars of foreign funding flowing into American universities, with the goal of “protect[ing] the marketplace of ideas from propaganda sponsored by foreign governments.” The new order builds on federal investigations from Trump’s first term that led universities to disclose more than $6.5 billion of foreign money they had failed to report despite a legal requirement to do so.

Entitled “Transparency Regarding Foreign Influence at American Universities,” Trump’s order seeks the full enforcement of Section 117 of the Higher Education Act, which has been on the books for more than half a century but was often ignored. The act requires every institution to file a report with the Department of Education whenever it “receives a gift from or enters into a contract with a foreign source, the value of which is $250,000 or more,” or adds up to that much in a single calendar year.

Requiring More Robust Disclosures

The new executive order directs the secretary of education to “require universities to more specifically disclose details about foreign funding, including the true source and purpose of the funds.” There has been no announcement yet on what additional details may be required. Section 117 entails two basic reporting requirements. First, for money from foreign sources that are not governments, institutions must report the aggregate value of funding from a particular country. For money from foreign governments, institutions must report the amounts received from that government.

Often, universities do not even do that much. In April, the Department of Education launched an investigation of the University of California, Berkeley (UCB) for failing to disclose foreign gifts. This apparently includes $220 million from the Chinese government to create a joint research institute in southern China. An investigation by two House committees flagged reporting failures related to the institute and its funding and companies within China’s military-industrial complex.

Links Between Higher Education and K-12 Classrooms

University-based scholars and institutes have a profound influence on K-12 teaching methods and curriculums, so foreign funding of higher education has the potential to shape what is taught in primary and secondary school classrooms. A March 2025 report from the Institute for the Study of Global Antisemitism and Policy (ISGAP) demonstrates how a foundation controlled by the Qatari regime influenced the content of the CHOICES program at Brown University, which provides social studies curriculums to 8,000 schools in all 50 states, reaching a million American children. As the report shows, the CHOICES curriculum has become progressively more hostile to Israel, questioning the legitimacy of the state and the Jewish people’s connection to the land. Nevertheless, the role of Qatari funding remains obscure because so little is required in the way of disclosure. Implemented rigorously, the new executive order on transparency in higher education can shed light on cases like this one.

Taking Universities to Court for Compliance Failures

In its section on enforcement, Trump’s executive order directs the attorney general to take appropriate action in concert with the secretary of education, suggesting legal consequences for institutions that do not comply. Section 117 specifies that, in cases of non-compliance, the attorney general may request that a federal court compel universities to fulfill their reporting obligations. In case of “knowing or willful failure to comply,” institutions may be required to compensate the government for the cost of investigation and enforcement. But the administration should also explore non-monetary penalties since institutions with deep pockets may be ready to bear the financial costs of non-compliance. If there is consistent enforcement, universities across the country may feel pressure to proactively comply in full.

The Department of Education should also require substantially more detailed disclosures. This should include specifics on what departments, professors, or centers receive foreign funds and line-item reporting on how those funds will be used. The investigation into UC Berkeley demonstrates that, without oversight, foreign funding of U.S. universities may directly threaten our national security.

Brandy Shufutinsky is the director of Education and National Security at the Foundation for Defense of Democracies (FDD), which examines the threats and vulnerabilities within America’s education system. Follow Brandy on X @76brandy76.  Follow FDD on X @FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.