The Trump administration has identified $27.6 million in payments from foreign entities on federal watchlists to American universities during the second half of 2025, according to government data reviewed by CBS News and reported by Fox News.
The Education Department says dozens of institutions received funds from counterparties flagged as national security concerns, including Aero Engine Corporation of China, which has ties to the Chinese military. Under Secretary of State for Public Diplomacy Sarah B. Rogers sent letters last week warning that continued relationships with these entities could result in restricted access to federal grant funding.
What the Right Is Saying
Conservative national security hawks say the disclosures reveal years of inadequate oversight by universities in reporting foreign gifts and contracts. Senator Tom Cotton of Arkansas has been among Republican voices calling for stricter enforcement of Section 117 reporting requirements, which mandate disclosure of foreign funding above certain thresholds.
The Education Department says American universities have received nearly $405 million from counterparties of concern over the period examined. A department spokesman told Fox News Digital that previous administrations "often looked the other way or kept this data hidden" and that the updated Section 117 Dashboard is designed to bring transparency to who is funding American research institutions.
Heritage Foundation analysts have argued that federal research dollars should not flow to institutions maintaining financial relationships with entities linked to adversarial militaries, particularly in fields like aerospace, supercomputing, and advanced materials where China poses direct technological competition.
What the Left Is Saying
Democratic lawmakers and academic freedom advocates have expressed concern about the breadth of the investigation and its potential impact on scientific collaboration. Representative Zoe Lofgren of California, whose district includes parts of Silicon Valley, has previously argued that broad restrictions on international research partnerships could undermine American competitiveness in key fields.
Some progressive education policy groups note that universities have long relied on international partnerships for research funding and talent pipelines. They argue that any reforms should be narrowly targeted rather than broadly restricting academic exchange programs that have historically benefited U.S. innovation.
Civil liberties organizations have also raised concerns about due process, noting that watchlist designations can sometimes lack transparency and that institutions deserve clear standards before facing funding consequences.
What the Numbers Show
The Education Department identified $27.6 million specifically from watchlisted foreign entities during the second half of 2025, while placing total foreign funding from counterparties of concern at nearly $405 million for that period.
Aero Engine Corporation of China paid approximately $7.8 million combined to Northwestern University, UC Irvine, and the University of Connecticut over several years. The company develops engines for Chinese military aircraft and appears on both the Treasury Department's Foreign Assets Control List and the Commerce Department's military end-user entity list.
UC Berkeley received a $7.6 million grant from Sun Yat-sen University, which hosts China's National Supercomputing Center and is listed on the Pentagon's "1286 List" of research institutions flagged for problematic activities.
Bryant University held a $22.6 million contract with Beijing Institute of Technology to maintain a jointly operated academic program in China. The institute appears on two federal watchlists.
Documents filed with the Department of Education do not disclose how the various funds were used by recipient universities, an information gap that the Trump administration's April 2025 executive order aims to address by requiring more detailed reporting on foreign funding sources.
The Bottom Line
Universities named in the disclosures have disputed aspects of the reporting. A UC Berkeley spokesman told Fox News Digital that the university "complies with all of the statutes and regulations" governing foreign gifts and contracts, adding that the institution is "analyzing and fact-checking the characterization of the government's data." The spokesman also clarified that UC Berkeley does not manage the Department of Energy's Lawrence Berkeley National Laboratory despite geographical proximity.
The Education Department's Section 117 Dashboard now makes previously hidden funding data publicly accessible. If universities maintain relationships with watchlisted entities, they face potential restrictions on federal research grants, which many institutions depend on for scientific programs across disciplines.
What comes next: Universities have received letters requesting heightened diligence on foreign partnerships. The State Department is expected to use the disclosed data in its national security reviews of academic collaborations. Institutions that cannot demonstrate compliance or sever problematic ties may see their eligibility for federal funding reviewed.