“Most foreign funds flow to a relatively small number of large institutions, many of which appear to have inadequately, or in some cases failed entirely, to report as required by law”
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This scrutiny is long overdue and necessary. Imagine how many millions of dollars have flowed into higher education completely unchecked.
Inside Higher Ed reports:
Colleges Under Fire for Foreign Gift Reporting
The Department of Education issued a report Tuesday accusing colleges of failing to comply with a law requiring biannual disclosure of all foreign gifts and contracts totaling $250,000 or more.
“We found pervasive noncompliance by higher ed institutions and significant foreign entanglement with America’s colleges and universities,” Secretary of Education Betsy DeVos said at an event marking the report’s release. “Our initial investigations catalyzed disclosure of approximately $6.5 billion in previously unreported foreign funds.”
The report, which was published with redactions, states that fewer than 300 institutions have historically reported foreign gifts and contracts to the department as required under Section 117 of the Higher Education Act of 1965.
“Most foreign funds flow to a relatively small number of large institutions, many of which appear to have inadequately, or in some cases failed entirely, to report as required by law,” the report states.
Since 2019 the department has launched investigations into compliance with foreign gift and contract reporting at 12 universities: Case Western Reserve, Cornell, Fordham, Harvard, Georgetown, Rutgers, Stanford, Texas A&M and Yale Universities; the Massachusetts Institute of Technology; and the Universities of Maryland and Texas.
The investigation found that Yale University did not submit reports for four years — a fact Yale has previously acknowledged and says it has remedied — while Case Western Reserve did not submit reports for 12 years before eventually submitting them “many years later.” Case Western Reserve declined to comment, citing the ongoing investigation.
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