Trump Administration Targets Foreign Funds at Harvard and UC Berkeley

On Friday, the Trump administration alleged that UC Berkeley had failed to reveal millions of dollars in foreign financing. This move came as part of their aggressive enforcement of a lesser-known federal regulation. It reflects broader attempts to control some of the nation’s leading research centers.

The main campus of the University of California has become the second institution this month to face an inquiry regarding potential breaches of Section 117 from the Higher Education Act of 1965. This section mandates the reporting of "gifts and contracts originating from foreign sources" exceeding $250,000.

A comparable probe into Harvard was unveiled the previous week. On Wednesday, President Trump issued an executive order instructing the Department of Education to intensify its efforts in enforcing this regulation.

U.S. Secretary of Education Linda McMahon stated, “The department will start by carefully reviewing UC Berkeley’s seeming inability to completely and precisely report substantial funds obtained from international sources.”

Dan Mogulov, who serves as the assistant vice chancellor for the UC Berkeley communications and public affairs office, released a statement indicating that the institution had already reached out to federal agencies regarding the matter.

"Throughout the past two years, UC Berkeley has been collaborating with federal investigations concerning [Section] 117 reporting concerns and will keep doing so," Mogulov stated.

These audits represent the most recent wave of regulatory measures targeting prestigious institutions nationwide.

The campaign strategy called Project 2025, which outlined potential plans for Trump’s presidency, pointed to Section 117 as a method to potentially revoke federal support from leading educational institutions, affecting funds like Pell Grants and Fulbright Scholarships. Experts warn this action might severely damage vital scientific research.

All of these truly pose significant challenges to the current model of research universities," stated Kevin Kinser, an education policy professor at Penn State University. "To be considered world-class, a university must engage globally—this is what characterizes a world-class institution.

The UC system was already reeling from massive federal funding cuts , student visa cancellations and Justice Department probes into admissions and allegations of antisemitism Harvard, the globe’s wealthiest educational institution, unexpectedly became a symbol of resistance when it stood firm against the administration's push for significant authority over the university.

A series of Section 117 challenges might further alienate institutions that are already under attack.

The leading institutions in America are already closely intertwined with prominent international colleges, such as their engineering collaborations with the Indian Institute of Technology and the presence of branches like those belonging to Georgetown, Texas A&M, and NYU in locations such as the Persian Gulf.

Supporters maintain that these collaborations are crucial for fostering innovation and achieving academic excellence. However, critics contend that external funding allows foreign entities to sway American student perspectives and provides an indirect pathway for those same bodies to gain access to U.S. intellectual assets.

"Ensuring transparency about foreign funding directed towards American colleges, universities, and research institutions is essential for safeguarding U.S. educational, cultural, and national security interests," according to Wednesday’s executive order.

The renewed examination at UC Berkeley has reignited the 2023 probe conducted by a House subcommittee regarding the Tsinghua-Berkeley Shenzhen Institute, which represents a collaboration involving UC Berkeley. College of Engineering and China's Tsinghua University initiated in 2016.

For many years, these two institutions have worked closely together on research related to clean energy and climate change. Tsinghua also maintains official collaborations with the University of Washington, Indiana University, and Cedars-Sinai Medical Center, amongst others.

The American nonprofit associated with Tsinghua provided $2.5 million to the UC Regents in both 2019 and 2018 for this initiative. In addition, they contributed $4.5 million to the Regents in 2017.

Jaweed Kaleem, a Times staff writer, provided additional reporting for this article.

This tale initially surfaced in Los Angeles Times .