The U.S. President has issued an order addressing the transparency of foreign funding in American universities, aiming to strengthen the enforcement of the Higher Education Act of 1965. This act requires higher education institutions to report significant sources of foreign funding, yet enforcement has lagged, obscuring the full extent of foreign contributions to these campuses.
According to a recent study, from 2010 to 2016, universities reportedly failed to disclose more than half of reportable foreign gifts. Foreign funding that is disclosed often masks the true sources. During the President's first term, efforts by the Department of Education led to 19 investigations from 2019 to 2021, revealing $6.5 billion in previously undisclosed foreign funds. However, subsequent administrative changes shifted this investigatory work to a less equipped unit, disrupting investigations and limiting public access to information.
The President's administration aims to counter this by promoting transparency to safeguard American educational, cultural, and national security interests. It is the declared policy to eliminate secrecy around foreign funds, protect the marketplace of ideas, and shield U.S. students and research from foreign exploitation.
Under the order, the Secretary of Education is instructed to take necessary actions to enforce the reporting requirements of foreign funding. These actions include rescinding prior administration policies that allow secrecy, requiring detailed disclosure of fund sources and purposes, enhancing public access to such data, and holding accountable institutions that fail to comply with the laws regarding foreign fund disclosure.
The order also insists on compliance by federal funding recipients, ensuring that higher education institutions' certification of adherence to foreign funding disclosure laws is critical for receiving federal grants. Noncompliance will result in the withholding of such funds.
This directive emphasizes respect for established authority and policies while adhering to existing laws and available resources. It clarifies that the order does not create any legal rights enforceable against the government or its entities.
Donald J. Trump signed this order at the White House on April 23, 2025.
