Feds say US colleges 'massively' underreport foreign funding

FILE - In this April 9, 2019, file photo, pedestrians walk on the campus at Stanford University in Stanford, Calif. (AP/Jeff Chiu, File)
FILE - In this April 9, 2019, file photo, pedestrians walk on the campus at Stanford University in Stanford, Calif. (AP/Jeff Chiu, File)

A scathing report from the Trump administration on Tuesday concluded top U.S. universities have "massively underreported" funding they accept from China, Russia and other nations described as "foreign adversaries."

The Education Department released the report amid its effort to enforce a 1986 law requiring U.S. universities to disclose gifts and contracts of $250,000 or more from foreign sources. After going decades with little federal oversight, the law has become a priority for the Trump administration amid concerns over economic espionage and trade secret theft from abroad.

The department's findings are primarily based on investigations it has opened at 12 schools, including Harvard, Yale, Stanford and Georgetown universities. Federal officials began investigating the schools amid suspicion they had failed to report millions of dollars in gifts and contracts from sources in China, Russia, Saudi Arabia and Qatar.

According to early findings in the report, most of the 12 schools have had financial dealings with Huawei, the Chinese tech giant some U.S. officials say is a threat to national security, and at least one had ties directly to the Chinese Community Party. Others had deals with the Russian government and institutions in Saudi Arabia and Qatar.

The report did not identify which universities were connected to those entities. Since coming under federal scrutiny, the 12 schools disclosed a combined $6.5 billion in foreign funding that was previously unreported, the department said.

Some universities have acknowledged errors in reporting and sought to correct them. Yale said it had failed to submit foreign funding reports for the years 2014-17 but later corrected the omission.

The department said its review is ongoing and it is still gathering information from universities.

In announcing the report, Education Secretary Betsy DeVos said her agency uncovered "pervasive noncompliance" from universities that have "significant foreign entanglement."

"For decades, enforcement was lax, but not anymore," she said. "We took action to make sure the public is afforded the transparency the law requires."

The report echoes warnings from federal authorities who say competing nations are increasingly targeting U.S. colleges to steal research and technology. It cites recent cases of Chinese nationals accused of working or studying at American colleges while also working for the Chinese government.

The department said its review is only meant to promote transparency and not to determine the appropriateness of specific financial ties. Still, it says the agency plans to wok with the Justice Department on any "potential enforcement against specific institutions."

Rep. Virginia Foxx, R-N.C., ranking member of the House Education and Labor Committee, applauded the Education Department for pressing for transparency.

"For too long, adversarial foreign actors, including China, have utilized whatever means at their disposal to influence American higher education with little to no repercussion," she said. "If we want to protect the integrity of American education, we must require greater transparency and accountability of foreign money in our colleges and universities."

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