Education Department Launches Investigation Into UPenn Over Foreign Donations

By Patrick McDonald of CampusReform

The University of Pennsylvania (UPenn) has come under federal investigation for “inaccurate and incomplete disclosures” of foreign funding.

The probe was launched by the U.S. Department of Education on May 8 after concerns that the school may be unduly influenced by foreign actors and follows a review of the school’s foreign reports, the department explained in a press release.

According to Section 117 of the Higher Education Act of 1965, universities that receive federal funding are required to disclose foreign donations valuing more than $250,000.

Acting General Counsel Tom Wheeler described UPenn’s compliance history with federal law as “troubling,” saying it had, in February 2019, failed to disclose any foreign funding whatsoever. 

Wheeler also noted that the Biden administration did not enforce the law requiring disclosure.

“Although the previous Administration degraded the Department’s enforcement of universities’ legal obligations to disclose foreign gifts and contracts, the Trump Administration will vigorously uphold the law and ensure universities are transparent with their foreign gifts and investments,” Wheeler said in a statement.

Wheeler asserted that the Education Department’s Office of the General Counsel (OGC) will “thoroughly” investigate the school, requiring the administration to disclose all foreign funding dating back to Jan. 1, 2017, with the central aim of verifying the school’s disclosures.

“The American people and Congress have a right to know the impact of foreign funding on our universities, including some of our critically important research universities,” Wheeler said. “We hope the University of Pennsylvania will be cooperative and forthcoming in response to this investigation.” 

The investigation into UPenn follows growing concerns that American universities have been influenced by the Chinese government. 

A nonprofit organization called Open The Books published a report in January which found that public universities in the U.S. have received “tens of millions of dollars in contracts to China” that were not reported to the federal government.

“Over the past decade, American institutions began pouring money into counterproductive, divisive DEI infrastructure,” the report reads. “Meanwhile, China was spending to gain influence in American academia, accessing research and technology to advance their national interests.”

Harvard University alone received more than $1.4 billion in foreign funding over the past decade—including $150 million from China. 

Additionally, an individual found to be affiliated with the Chinese Communist Party (CCP) attempted to gain access earlier this month to research at Stanford University by posing as a student.