WASHINGTON (Diya TV) — The U.S. Department of Education plans to require American universities to publicly disclose the identities of foreign entities that fund them. Officials say the move will increase transparency and allow the public to better understand the scale and sources of foreign funding in higher education.
A senior Education Department official confirmed that the agency will soon update its reporting rules under Section 117 of the Higher Education Act. The change will require universities to reveal the names of foreign donors or contractors connected to large gifts and contracts. The department expects to make this information available for public inspection by early to mid-summer.
Section 117 of the Higher Education Act requires colleges and universities to report foreign gifts and contracts worth $250,000 or more. Institutions must submit these reports to the Department of Education. The law also states that the department must make these reports available for public inspection.
Currently, universities disclose the identities of foreign donors to the department. However, the agency does not publish those names publicly. Instead, it lists only the total amounts received from foreign entities in its reporting portal. Education officials say this practice does not meet the requirements of the law.
“The law is very clear,” a senior department official said. “The Department of Education must make the reports submitted by universities available for public inspection. We are not doing that right now.”
Under the upcoming change, the department will publish the identities of foreign counterparties. These counterparties include organizations, companies, or individuals that provide funding to universities through gifts or contracts.
Federal officials say the new disclosure rule will help the public see whether universities receive funding from foreign entities that could raise concerns. Officials argue that transparency helps protect academic independence and national security. It also allows lawmakers, journalists, and the public to examine possible foreign influence in American research institutions.
“It’s appropriate for universities to be transparent with the American people, with Congress and with the media,” the official said.
Currently, even members of Congress cannot easily access the identities of some foreign counterparties listed in the system. Education officials say the upcoming changes will address that gap.
The Department of Education is following the federal rulemaking process before implementing the change. The agency has notified universities and will allow time for public comment. Officials expect the new disclosure requirement to take effect within the next few months. According to the senior official, many universities have resisted making donor identities public. Some institutions have spent years trying to keep that information confidential.
Previous administrations allowed universities to mark some funding records as exempt from public disclosure. That meant certain foreign donors could remain hidden in public records requests. The department now plans to end that practice.
“We are done with that business,” the official said. “The law says we must make these records available for public inspection.”
Data from the department’s Section 117 Foreign Gift and Contract Reporting portal shows that American universities receive billions of dollars from foreign sources. The portal launched on Jan. 2 and recently recorded a major increase in reported funding. Officials updated the system on Friday to include an additional $4.5 billion in gifts and contracts reported between Dec. 17, 2025, and Jan. 31, 2026.
The total disclosed foreign funding rose from $67.6 billion to $72.1 billion. Officials say the surge in reporting shows that universities are taking the requirements more seriously.
Some of the nation’s most prestigious universities appear among the largest recipients of foreign funding. Government data shows that Harvard University has received about $634 million from counterparties identified as entities of concern. Most of those funds reportedly came from sources in China.
Education officials say another top U.S. research university received more than $7 million from Chinese entities that also appeared on a U.S. government watch list. Officials argue that the public has a right to know when universities receive money from such organizations.
“The American people have every right to know that,” the senior official said.
Education officials say the department now places greater focus on enforcing Section 117 rules. According to agency officials, earlier administrations did not prioritize monitoring foreign funding at American universities. The current effort aims to strengthen oversight and improve reporting systems.
The department recently introduced a new reporting portal that allows universities to submit information more easily. Officials say the updated system helps the agency track foreign gifts and contracts more effectively. The most recent reporting period revealed at least $11 million in funding from entities linked to organizations on U.S. government watch lists.
Education officials say universities should prepare for greater transparency in the months ahead. Most institutions already comply with reporting rules, the official said. However, the department expects all universities to review their foreign funding relationships carefully. Officials warn that the identities of foreign counterparties will soon become visible to the public.
“Universities are on notice,” the official said. “They should prepare for the counterparties they interact with to be made available for the American people to see.”
