Linda McMahon launches federal portal to monitor foreign funding in US universities
The U.S. Department of Education on Monday announced the launch of a new portal designed to hold universities accountable for disclosing foreign funding, in accordance with federal law, as reported by The Daily Signal. The portal, scheduled to go live on January 2, 2026, will require higher education institutions to report all foreign gifts and contracts valued at $250,000 or more.This initiative seeks to enforce Section 117 of the Higher Education Act, which mandates that colleges and universities submit biannual disclosures of foreign-source funding to the Department of Education. The law is intended to provide transparency on foreign financial relationships and safeguard U.S. institutions against potential foreign influence.
Legal and policy context
Section 117 of the Higher Education Act requires U.S. universities to disclose any foreign gifts and contracts exceeding $250,000. Compliance with this regulation has historically been inconsistent. According to a senior Department of Education official, only around 40% of universities currently meet their obligations under Section 117.“America’s taxpayer-funded colleges and universities have both a legal and moral obligation to be fully transparent with the U.S. government and the American people about their foreign financial relationships,” Secretary of Education Linda McMahon told The Daily Signal. She added that the portal is part of a broader effort to protect national security and reduce the risk of foreign influence in U.S. research and academic programs.The Department of Education under the Trump administration prioritised this initiative, citing concerns that foreign funding could impact university decision-making, particularly in STEM fields. Foreign governments may leverage financial contributions to secure lab positions in high-demand programs, or influence institutional policies.
Portal features and development
The new portal is described by officials as a “state-of-the-art system” designed to improve efficiency, security, and transparency. Unlike the current reporting system, which has not been meaningfully updated since the first Trump administration, the new portal allows universities to:
- Upload multiple foreign funding disclosures in bulk rather than individually.
- Access executive summary visualizations for improved public transparency.
- Draft, review, and submit reports directly to the Department of Education.
Nine universities, including the University of Texas at Austin, MD Anderson Cancer Center, University of Southern California, Pepperdine University, Purdue University, Indiana University, Washington University, and the University of Arizona, participated in beta testing. Feedback from these institutions helped refine the portal to meet the needs of universities while ensuring compliance with federal reporting requirements.
Enforcement and investigations
Non-compliance with Section 117 can result in enforcement actions by the Department of Justice, including civil actions to compel reporting and recover the cost of enforcement. The Department of Education has already launched investigations into Harvard University, the University of California at Berkeley, the University of Michigan, and the University of Pennsylvania for allegedly submitting inaccurate or untimely foreign funding disclosures.Officials also expressed concerns regarding universities funded by foreign adversaries. Institutions receiving such funding may be hesitant to take firm stances on sensitive issues, including antisemitic or anti-Israel activity.
National security implications
The portal aligns with former President Donald Trump’s April 2025 executive order, Transparency Regarding Foreign Influence at American Universities, which emphasizes ending secrecy around foreign funding and protecting U.S. students and research from foreign exploitation. By improving reporting accuracy and public transparency, the Department of Education aims to reduce potential foreign influence on American research institutions.“The new portal represents an important step in carrying out the executive order and ensuring that universities meet their statutory responsibilities,” a senior department official told The Daily Signal. The system is expected to facilitate increased monitoring, more accurate reporting, and stronger enforcement where necessary.
Looking ahead
The Department of Education’s initiative underscores a shift toward stricter accountability for foreign funding in higher education. Universities are now expected to enhance internal reporting systems, ensure timely disclosures, and maintain compliance with federal regulations. The portal also represents a broader effort to safeguard research integrity and national security in U.S. academic institutions.
