Universities get funding from foreign entities on U.S. watch lists, records show

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Major U.S. universities person received millions of dollars successful backing from overseas entities that are connected U.S. authorities ticker lists, according to a CBS News reappraisal of assemblage backing records submitted to the Department of Education. 

State Department and Education Department officials accidental the disclosure forms, which person not been antecedently reported, amusement a combined $27.6 cardinal received successful astir the 2nd fractional of past twelvemonth by dozens of apical American probe institutions that originated from entities appearing connected astatine slightest 1 national authorities ticker list. There are 10 cautionary and restricted ticker lists overseen by the departments of Treasury, Commerce, Homeland Security, Defense and State, which emblem companies and organizations that should beryllium taxable to other scrutiny owed to their ties to overseas authorities interests.

The 2 agencies are moving unneurotic to ace down connected world partnerships with overseas companies and organizations that the Trump medication says could endanger nationalist security. 

In 1 illustration from the disclosure forms, a institution successful China that develops state-of-the-art aeronautics for the People's Liberation Army gave much than $7 cardinal full to 3 American universities considered top-tier probe institutions. The largest amount, disclosed successful 2020, was $22.6 cardinal for a 50-year declaration from the Beijing Institute of Technology to Bryant University successful Rhode Island.

On Wednesday, Under Secretary of State for Public Diplomacy Sarah B. Rogers sent a missive to the governing boards of large probe universities alerting them that aboriginal grant-making agencies volition beryllium checking if institutions instrumentality wealth from overseas entities connected U.S. ticker lists — and could propulsion national backing for those that do.

"In airy of the above, I impulse you, arsenic committee members, to guarantee heightened diligence connected this substance which has important nationalist information implications for our country," Rogers wrote successful the letter, obtained by CBS News.

The missive went to 187 schools classified arsenic Research-1, oregon R-1, universities — those that grant the astir doctorates and person the astir important probe programs.

The full magnitude of overseas funds flowing into American universities has been expanding successful caller years and reached $1.5 cardinal successful 2022, the astir caller twelvemonth information is available, according to the National Center for Science and Engineering Statistics. But that is little than 2% of the full $117 cardinal successful probe and improvement backing awarded to universities successful the U.S., much than fractional of which comes from the U.S. government, according to NCSES data. 

Most higher acquisition institutions worth collaborations with acquisition partners astir the satellite and accidental probe collaboration tin accelerate technological and technological advancements. When funds from overseas companies and world institutions facilitate caller programming, universities person often gladly participated.

Universities person been required to disclose overseas gifts of $250,000 oregon much to the Department of Education nether Section 117 of the Higher Education Act since 1986. But disclosures sometimes lapsed and determination was nary authorities strategy successful spot for accountability, according to existent and erstwhile State and Education Department officials, the House Select Committee connected the Chinese Communist Party, and autarkic analysts who way Section 117 compliance. They accidental nary 1 was cross-referencing the donors against U.S. authorities ticker lists, allowing for institutions straight linked to overseas militaries to money programs and professorships astatine R-1 universities.

National information and quality analysts accidental the stakes are high, and accrued scrutiny connected backing from China flowing to programs astatine apical American universities is amended precocious than never.

"This has been a speech going connected for years present successful probe information circles," said LJ Eads, the laminitis of Data Abyss and manager of probe quality astatine Parallax Advanced Research. 

"It's been a immense argumentation neglect successful presumption of implementing restrictions without follow-through implicit the years. I subordinate it to having kids and not parenting well. Or giving your teen a cellphone and having nary restrictions connected cellphone use," Eads said.

Ties to China's military-industrial complex

Among the watch-listed entities putting wealth into U.S. universities, the bulk of which is from China, is Aviation Engine Corporation of China, known arsenic AECC, which develops engines for assorted Chinese subject aircraft, including the J-11 combatant jet and the Z-10 onslaught helicopter

CHINA-AEROSPACE-EXHIBITION File: A Chinese Changhe Z-10 onslaught helicopter. Aviation Engine Corporation of China (AECC) develops engines for assorted Chinese subject aircraft, including the J-11 combatant pitchy and the Z-10. HECTOR RETAMAL/AFP via Getty Images

Given the AECC's nonstop ties to the People's Liberation Army, the Treasury Department lists it connected the Foreign Assets Control List arsenic good arsenic different database of companies tied to the Chinese military-industrial complex. It is considered a "Military End-User Entity" by the Department of Commerce, making it taxable to strict export licensing requirements.

AECC's probe institutes paid Northwestern University, the University of California, Irvine, and the University of Connecticut a combined $7.8 million, according to the universities' records submitted to the Department of Education. The wealth was sent successful aggregate increments implicit respective years.

Northwestern received a full of much than $3 cardinal betwixt 2017 and 2025. The documents bash not bespeak what the wealth was for. Northwestern did not respond to aggregate requests for remark from CBS News. 

UC Irvine received astir $4 cardinal successful contracts betwixt 2018 and 2020, according to the records. UC Irvine did not respond to CBS News' requests for comment. 

The University of Connecticut received astir $800,000 successful contracts that spanned 2018 and 2021, according to information reviewed by CBS News. A UConn spokesperson said the assemblage is looking into what the backing was for.

When CBS News called AECC for comment, an automated dependable said, "The called enactment is temporarily unavailable." A petition for remark via AECC's societal media went unanswered.

Records amusement Bryant University's $22.6 cardinal declaration with Beijing Institute of Technology, which appears connected 2 ticker lists, was for "a jointly operated academic program successful China." A spokesperson for Bryant did not instantly respond to a petition for comment.

UC Berkeley, which manages the Department of Energy's superior high-performance computing facility, has received much than $25 cardinal successful contracts dating backmost to 2016 from China-based entities that are connected U.S. authorities ticker lists, according to disclosures to the Department of Education. That includes a assistance of $7.6 cardinal from Sun Yat-sen University, big of China's National Supercomputing Center. Sun Yat-sen University besides appears connected the Department of Defense's "1286 List," a roster of overseas world and probe institutions identified arsenic engaging successful "problematic activities," and a Commerce Department list of entities whose legitimacy the U.S. authorities has been incapable to verify.

UC Berkeley did not respond to CBS News' petition for comment.

The Trump administration's existent propulsion to enforce nationalist information protections for probe backing follows a bid of efforts to defund probe institutions based connected a assortment of different grounds, including diversity, equity and inclusion policies and what the medication called an "explosion of antisemitism" that swept crossed campuses aft the Oct. 7, 2023, Hamas onslaught connected Israel.

Since Mr. Trump took bureau successful January 2025, the Department of Education has frozen oregon chopped national backing to galore large universities, immoderate of which was aboriginal restored aft tribunal challenges. 

A displacement successful higher acquisition assistance allotment is already underway.

In a July 8 "Dear Colleague" letter, the U.S. National Science Foundation (NSF), a national bureau that awards grants for the astir delicate probe and development, announced a caller argumentation prohibiting NSF funds from being expended successful collaboration with entities connected U.S. restricted parties ticker lists. 

NASA is paying attraction arsenic well, peculiarly due to the fact that the bureau has been taxable to the Wolf Amendment, a 2011 U.S. instrumentality that prohibits NASA from utilizing authorities funds to prosecute successful direct, bilateral practice with the Chinese authorities oregon China-affiliated organizations. 

Following a May 11 study from the Select Committee connected the Chinese Communist Party, the abstraction bureau proactively froze each progressive grants identified arsenic perchance involving prohibited practice with China oregon Chinese-owned entities portion the allegations are investigated, according to a NASA spokesperson.

Analysts who person researched Section 117 are applauding the caller propulsion for compliance astatine universities. 

"In wide it's bully that we person much accusation to enactment with and it's bully that the national authorities is investigating these funds," said Neetu Arnold, a Paulson argumentation expert astatine the Manhattan Institute, a New York City-based deliberation tank. 

Arnold advocated for taking a targeted attack to known atrocious actors, since galore probe collaborations person accelerated technological advancement.

"A batch of overseas funds aren't needfully harmful, but immoderate of it could beryllium a concern. We mightiness beryllium processing exertion oregon cognition that whitethorn beryllium advancing different countries' interests that aren't aligned with ours," Arnold told CBS News.

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