Department of Education Investigates University of Pennsylvania for Foreign Funding Disclosure Violations

The U.S. Department of Education's Office of the General Counsel has launched a formal investigation into the University of Pennsylvania for inaccurate and untimely disclosures of foreign gifts and contracts, potentially violating Section 117 of the Higher Education Act of 1965. This statute requires institutions receiving federal aid to report foreign gifts and contracts valued at $250,000 or more annually, with semiannual disclosures mandated. Acting General Counsel Tom Wheeler highlighted UPenn's troubling compliance history, noting the university failed to disclose any foreign funding until 2019 despite longstanding legal obligations. The department has requested extensive records, including tax documents and agreements with foreign entities dating back to 2017, with a 30-day deadline for compliance. The investigation underscores concerns about foreign influence on U.S. higher education and signals a renewed enforcement approach under the current administration. This probe follows other federal actions against UPenn, including a suspension of $175 million in funding over transgender athlete policies.