State Department alerts universities to foreign funding from watch-listed entities

State and Education Department officials identified $27.6 million in foreign gifts received by dozens of major U.S. research universities from entities on at least one federal watch list during roughly the second half of last year. The disclosures were submitted to the Department of Education under Section 117 of the Higher Education Act, which requires universities to report foreign gifts of $250,000 or more.

Ten cautionary and restricted lists maintained by the departments of Treasury, Commerce, Homeland Security, Defense and State flag companies and organizations for extra scrutiny due to ties to foreign government interests.

State for Public Diplomacy Sarah B.

Rogers sent a letter on Wednesday to the governing boards of 187 Research-1 universities. The letter stated that future grant-making agencies will check whether institutions accept money from watch-listed entities and may withhold federal funding from those that do.

"In light of the above, I urge you, as board members, to ensure heightened diligence on this matter which has important national security implications for our country," Rogers wrote.

Specific funding examples Records show a Chinese company that develops aeronautics for the People's Liberation Army provided more than $7 million to three top-tier U.S. research universities. Aviation Engine Corporation of China, listed on Treasury and Commerce Department watch lists, sent a combined $7.8 million to Northwestern University, the University of California, Irvine, and the University of Connecticut.