U.S. Investigates University of Michigan Over Foreign Funding Disclosures

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Highlights:

  • The U.S. Department of Education has launched an investigation into the University of Michigan (UM) for potential violations of federal disclosure laws on foreign funding.
  • Allegations involve untimely, inaccurate reporting and foreign partnerships linked to Chinese government entities.
  • The investigation follows criminal charges against Chinese nationals allegedly smuggling dangerous biological materials tied to UM labs.
  • UM’s past partnership with a Chinese university and congressional concerns about research misuse have heightened scrutiny.
  • The case reflects a broader national push, driven by the Trump administration, to curb foreign influence—especially from China—in U.S. higher education.

Federal Probe Triggered by National Security Concerns

The U.S. Department of Education has opened a formal investigation into the University of Michigan (UM) for allegedly failing to accurately report tens of millions of dollars in foreign funding, citing potential national security risks linked to Chinese partnerships. 

The inquiry, announced Tuesday, stems from concerns that UM’s disclosures under Section 117 of the Higher Education Act were incomplete, inaccurate, and, in some cases, misleading.

Chief Investigative Counsel Paul Moore stated that UM has “downplayed its vulnerabilities to malign foreign influence” while remaining “vulnerable to sabotage.” 

The Department has demanded extensive records from 2020 onward, including financial disclosures, partnership agreements, and personnel lists involved in foreign research collaborations.

Background of Controversy and Criminal Allegations

In January 2025, UM ended a long-standing partnership with Shanghai Jiao Tong University after congressional pressure. Lawmakers argued the collaboration could have contributed to China’s sensitive military programs. 

Adding to the controversy, the Justice Department recently charged two Chinese nationals affiliated with UM for allegedly smuggling dangerous biological materials into the U.S.—acts federal authorities warn may amount to “potential agroterrorism.”

According to Reuters and other outlets, the Education Department criticized university officials, including Center for Chinese Studies director Ann Chih Lin, for allegedly downplaying risks. UM has since pledged to review its research security protocols.

Part of Broader National Effort

The investigation aligns with broader efforts by the Trump administration to increase transparency and limit foreign influence in American higher education. 

Similar probes have occurred at Harvard, Penn, and UC Berkeley. While many universities support improved research safeguards, they caution against generalizing security risks to all foreign scholars.

With China accounting for over 270,000 international students in the U.S., the investigation underscores the balancing act between openness in academia and national security vigilance.

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