National Security Focus Intensifies On U.S. University Transfers

The Department of Education announced Tuesday that it has upgraded a crucial portal requiring higher education institutions to report foreign financial donations and contracts directly to the federal government, aiming to bolster compliance with existing regulations.

This system update comes after years where Section 117 mandates, which require biannual disclosure for funds totaling $250,000 or more annually from foreign sources, were supposedly neglected by the Biden administration. Education officials now emphasize that institutions face both moral and legal obligations to ensure complete transparency regarding their international financial relationships.

The enhanced reporting system is designed specifically to protect national security and academic integrity by increasing awareness of potential foreign influence within higher education. Failure to comply carries significant risks, including enforcement actions from the Department of Justice potentially involving civil suits for compliance and cost recovery measures.

Notably, investigations under Section 117 initiated this year include prominent universities such as Harvard, the University of California at Berkeley, the University of Michigan, the University of Pennsylvania, and the University of Texas System. The administration has formally demanded records from these institutions, imposing 30-day deadlines for compliance while threatening DOJ intervention if needed.

A September 2024 House Select Committee investigation revealed federally funded researchers potentially assisting China with military-related technologies through foreign relationships, adding urgency to the push for greater transparency.

The portal was recently beta-tested at nine major universities, including Texas A&M University and the University of Arizona, before its planned launch on January 2nd.