The U.S. Department of Education has requested records from Harvard University following a review that uncovered incomplete and inaccurate foreign financial disclosures. Under Section 117 of the Higher Education Act of 1965, institutions receiving federal financial assistance are required to report foreign gifts and contracts valued at $250,000 or more annually.
U.S. Secretary of Education Linda McMahon commented, “As a recipient of federal funding, Harvard University must be transparent about its relations with foreign sources and governments. Unfortunately, our review indicated that Harvard has not been fully transparent or complete in its disclosures, which is both unacceptable and unlawful.” She emphasized the importance of Harvard upholding transparency standards and the need to ensure the university is not unduly influenced by foreign entities.
The Education Department has asked Harvard to provide multiple records within 30 days to confirm compliance with federal requirements. These include a complete list of foreign gifts and contracts, identities of involved parties, and records relating to expelled foreign students. Additionally, Harvard must disclose information about researchers and students affiliated with foreign governments.
Section 117 mandates that U.S. colleges and universities disclose significant foreign financial agreements semiannually to the Department of Education to protect national security and academic integrity. Noncompliance can lead to enforcement actions by the Department of Justice or a loss of federal funding eligibility.
The call for better transparency follows a 2020 Trump Administration report revealing underreporting of foreign financial dealings, which exceeded $6.5 billion collectively. This report indicated that some universities provided substantial access to foreign governments, potentially compromising the institutions' integrity.
