Department of Education Investigates UC Berkeley for Alleged Failure to Disclose Foreign Funding

In a significant move, the U.S. Department of Education has launched an investigation into the University of California, Berkeley, over allegations of non-compliance with federal law regarding foreign funding disclosures. According to senior administration officials, UC Berkeley has reportedly received upwards of $220 million from Chinese governmental sources to establish the Tsinghua-Berkeley Institute in Shenzhen, yet failed to report this payment as mandated by Section 117 of the Higher Education Act, which requires institutions to disclose foreign gifts exceeding $250,000. This probe comes as part of a broader investigation concerning 'hundreds of millions of dollars' in foreign funding that the Department aims to scrutinize. The department officials noted that significant attention would be directed toward whether any critical U.S. technologies were transferred to Chinese state-linked organizations through this funding arrangement. Following a tumultuous period in federal oversight of foreign funding at universities, the investigation is particularly notable given the previous limitations seen under the Biden administration, which had closed many pending Section 117 inquiries initiated during the Trump presidency. Notably, an executive order from Trump has now revived interest in compliance surrounding foreign funding, especially in light of ongoing tensions with China and other nations deemed potentially hostile. A spokesperson for UC Berkeley, Dan Mogulof, stated that the university has been actively cooperating with federal inquiries regarding these reporting issues for over two years and will continue to do so. However, the situation has raised significant concerns about accountability and transparency among higher education institutions, especially as they are recipients of over $55 billion annually in federal grants. Education Secretary Linda McMahon voiced her frustration with the lack of oversight during previous years, arguing that the Biden-Harris administration had neglected to enforce compliance with foreign funding disclosures, allowing foreign donations to flood American campuses without due diligence. This investigation highlights ongoing fears of misuse of foreign funding in significant research activities and potential technology transfers. The Treasury Department will assist in auditing financial records, which may lead to accountability for any potential wrongdoing by UC Berkeley or other institutions alike. The revival of scrutiny on UC Berkeley correlates with broader investigations into various Ivy League schools, particularly regarding their handling of antisemitism and foreign funding post the recent terrorist attacks on Israel. McMahon’s statements reflect a growing bipartisan concern regarding the relationship between U.S. educational institutions and foreign powers, especially as it relates to national security. This moment also serves as a timely reminder of the ongoing dialogue about the implications of foreign funding in American academia, one that balances the beneficial academic cooperation and the risks of potential foreign influence or conflicts of interest.