Education Department investigates foreign funding concerns

The U.S. Department of Education has launched two investigations into the University of North Dakota and Duke University in North Carolina over concerns of inaccurate disclosures of foreign funding, placing both institutions’ federal funding at risk.The Department of Education alleges that both universities submitted incomplete financial disclosures in violation of Section 117 of the Higher Education Act of 1965.
Under federal law, postsecondary institutions receiving federal financial assistance must publicly report all foreign-sourced gifts and contracts valued at $250,000 or more annually.
The review of Duke focuses on Duke Kunshan University, a joint campus established in 2013 with China’s Wuhan University.
The Department cited oversight of Wuhan University by China’s State Administration of Science, Technology and Industry for National Defense, referencing a 2025 House Select Committee letter asserting the university “trains cyber warfare specialists.”
At the University of North Dakota, federal scrutiny targets foreign financial ties linked to its School of Aerospace and uncrewed aerial systems research. These national security interests have been major investments by Chinese aviation companies known to have close associations with China’s military.
These investigations follow August 2026, when the Department of War notified over 30 universities to review and update their foreign relations ties or risk foreign funding.
Under Secretary of Education Nicholas Kent noted that Section 117 requires that institutions of higher education clearly and accurately report their foreign financial ties to ensure the integrity of the colleges or universities.
“Our reviews found real gaps in how Duke and UND have handled their Section 117 obligations,” said Under Secretary of State for Public Diplomacy Sarah Rogers in a statement. “[D]isclosures submitted late, key details left out, and at least one foreign government partner mischaracterized as a non-governmental entity.”
The Center Square reached out to the Department of Education but staff said no one was available to comment.
The Department of Education has given both universities 30 days to provide the requested records and information to verify compliance under the law.
The Center Square reached out to both Duke and UND for a comment in its compliance but did not receive a response.

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