President Trump signed executive orders cracking down on foreign funding of American universities, threatening to cut federal aid to elite institutions that fail to disclose billions received from countries like China and Arab states.
At a Glance
- Trump’s executive order demands transparency from universities receiving foreign funds, with the threat of federal funding cuts for non-compliance
- Investigations from 2019-2021 uncovered $6.5 billion in previously undisclosed foreign contributions to American universities
- Current law requires reporting of foreign gifts over $250,000, but enforcement has been lax with universities failing to disclose over half of reportable foreign gifts from 2010-2016
- Elite institutions including Harvard, Cornell, and University of Pennsylvania have received significant funding from Arab states and China
- Education Secretary Linda McMahon is tasked with enforcing disclosure requirements and reversing prior policies that allowed secrecy
Cracking Down on Foreign Influence in American Education
On April 23, 2025, President Donald Trump signed an executive order mandating stricter transparency measures for American universities receiving foreign funding. The order specifically targets elite institutions that have received billions in overseas cash while allegedly failing to comply with existing disclosure laws. Under Section 117 of the Higher Education Act of 1965, universities are required to report significant foreign gifts and contracts exceeding $250,000, but enforcement of these requirements has been notoriously weak over the past decade.
The executive order comes amid growing concerns about foreign influence in American higher education, particularly from countries like China and wealthy Arab states. According to White House documents, from 2010 to 2016, universities failed to disclose over half of reportable foreign gifts. Subsequent investigations conducted between 2019 and 2021 led to the disclosure of $6.5 billion in previously unreported foreign funds flowing into American academic institutions.
Enforcement Mechanisms and Federal Funding Threats
The new directive empowers Education Secretary Linda McMahon to enforce disclosure requirements rigorously and reverse previous administrative actions that allowed secrecy in foreign funding reporting. Universities now face potential loss of federal funding if they fail to comply with the enhanced transparency measures. The order explicitly calls for detailed information about foreign funding sources, amounts, and purposes to be made publicly accessible, with non-compliance triggering accountability measures including audits and investigations.
This action follows the administration’s recent suspension of over $2 billion in federal grants to Harvard University over concerns about antisemitism and admissions policies. The Department of Education has already warned 60 colleges about potential federal funding cuts related to antisemitism issues, signaling the administration’s willingness to use financial pressure to enforce compliance with its priorities in higher education.
Harvard and Other Elite Universities Under Scrutiny
White House staff secretary Will Scharf specifically named Harvard University as an institution believed to have “routinely violated” foreign funding disclosure laws. Other elite schools including Cornell, Carnegie Mellon, and the University of Pennsylvania have received significant foreign funding that the administration believes warrants greater scrutiny. The executive order aims to ensure these institutions can no longer accept foreign money without proper disclosure of the source, amount, and purpose.
“We believe that certain universities, including, for example, Harvard, have routinely violated this law, and this law has not been effectively enforced. So this executive order charges your departments and agencies with enforcing the laws on the books with respect to foreign gifts to American universities.” White House staff secretary Will Scharf told Trump as he presented the document for his signature in the Oval Office.
The administration has expressed concern that the previous administration moved investigatory work regarding foreign funding to a less equipped unit, undermining transparency efforts. The new executive order directly tasks the Secretary of Education and Attorney General with dismantling existing standards that have allowed universities to avoid full disclosure and implementing stricter enforcement mechanisms to ensure compliance with reporting requirements.
National Security and Academic Independence Concerns
The White House has framed the executive order as essential to protecting national security interests and academic independence from unwanted foreign influence. By requiring comprehensive disclosure of foreign funding sources and purposes, the administration aims to defend educational institutions against foreign propaganda and safeguard students and research activities from manipulation by external actors with potentially conflicting agendas.
In addition to the foreign funding transparency order, President Trump signed several other executive orders the same day addressing higher education, including measures to review college accreditation processes and provide more flexibility in student discipline policies. These actions collectively represent a significant shift in federal oversight of American higher education institutions, particularly regarding their international financial relationships and governance.
