State Department Joins Education Oversight of Foreign University Funding

The Trump administration is expanding its investigation into overseas financial influence at American colleges by bringing the State Department into oversight efforts. Universities must now report foreign gifts exceeding $250,000, with Qatar, Britain, and China being the top funding sources in 2025.

WASHINGTON – Federal officials announced Monday that the State Department will now collaborate with the Department of Education to investigate what they consider harmful foreign influence within American higher education institutions.

The Trump administration has previously warned universities about potential cuts to federal funding over various campus issues, including protests supporting Palestinians during the Israel-Gaza conflict, policies regarding transgender students, climate-related programs, and diversity initiatives. These threats have sparked concerns about protecting free speech and academic independence on college campuses.

An executive order signed by Trump in April 2025 demanded stronger enforcement of Section 117 of the Higher Education Act. This law mandates that colleges receiving government funding must disclose any foreign gifts or agreements valued at more than $250,000. The Education Department created a new online reporting system for these disclosures in December.

Under Secretary for Public Diplomacy Sarah Rogers explained the State Department’s expanded involvement would “ensure an invigorated compliance assurance effort by the federal government.”

“The Department of State will be applying our national security expertise and our expertise countering foreign malign influence to bolster oversight efforts by the Department of Education,” Rogers stated during a State Department press briefing.

When pressed for concrete examples of problematic foreign influence in higher education, officials did not provide specific cases. They emphasized their primary goals are increasing university compliance with reporting requirements and enhancing transparency.

Congressional interest in this issue intensified after a 2019 Senate subcommittee investigation documented China’s influence within the American education system, leading to stricter enforcement of existing disclosure regulations.

According to Education Department data, American colleges and universities reported 8,300 foreign funding transactions worth $5.2 billion in 2025. This figure encompasses money from foreign governments, private corporations, and individual donors. Qatar provided the largest amount at $1.1 billion, with Britain contributing $633 million and China supplying $528 million.