The U.S. Department of Education has initiated an investigation into the University of Pennsylvania (UPenn) regarding foreign funding disclosures. The Office of the General Counsel (OGC) opened this inquiry after finding inaccuracies and omissions in UPenn's reports on foreign financial contributions.
Under Section 117 of the Higher Education Act of 1965, institutions receiving federal aid must report foreign gifts and contracts valued at $250,000 or more annually to the Department of Education. Acting General Counsel Tom Wheeler commented on UPenn's history with compliance: "UPenn has a troubling Section 117 compliance history, having failed to disclose any foreign funding until February of 2019 despite a decades-long statutory obligation to do so."
Wheeler emphasized that under the Trump Administration, there would be strict enforcement to ensure transparency about foreign investments in universities: "OGC will investigate this matter thoroughly, ensuring that universities cannot conceal the infiltration of our nation’s campuses by foreign governments and other foreign interests."
To assess UPenn's adherence to these requirements, the Department has requested several records from January 1, 2017, onward. These include tax records, written agreements with foreign entities concerning international students and research collaborations, and information about personnel involved in managing these activities.
Section 117 mandates U.S. colleges and universities receiving federal financial aid to disclose substantial gifts or contracts from abroad twice a year. This law aims to safeguard national security and academic integrity by monitoring external influences in higher education.
Recently, similar actions were taken against Harvard University and the University of California, Berkeley for comparable issues with their foreign funding disclosures.
