Every so often, something bubbles up from the policy side of education that makes you pause mid-coffee and say, “Well, now, that’s going to stir the pot.” This week, it’s the U.S. Department of Education’s updated data on foreign gifts and contracts to American colleges and universities.
The number? Roughly $4 billion in newly reported funds from overseas. That’s not pocket change.
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Under an old but often overlooked rule, Section 117 of the Higher Education Act, colleges have to report any foreign gifts or contracts totaling $250,000 or more in a calendar year. The latest batch of data, current as of October 2024, adds more than 5,600 new entries. These transactions span over 110 countries, with big money coming from places like Bermuda, Canada, Qatar, Germany, and Japan.
Some of the institutions pulling in the highest totals during this stretch? Morningside University, the University of Cincinnati, Harvard, Stanford, and Penn. And no, this isn’t just about cash for scholarships or new buildings. Sometimes it’s research funding. Sometimes it’s contracts. Sometimes it’s… less obvious.
Now, here’s where things get thorny.
The Department wants to tighten the screws a bit. They’ve proposed more detailed reporting not just how much and from whom, but why, where it goes, and what it touches. Colleges would need to fill out a hefty checklist twice a year, covering things like intellectual property, academic influence, and more.
Unsurprisingly, that’s ruffled some feathers. Higher ed groups are saying, “You want transparency, fine, but this is a paperwork mountain.” They worry this level of scrutiny could slow down international collaboration or spook donors who prefer a little discretion.
The way the Department rolled this out has raised eyebrows too. Rather than using the usual public rulemaking route, they’re framing it as a paperwork burden issue under the Paperwork Reduction Act. Translation: fewer hoops for them, fewer chances for colleges to push back in a meaningful way.
For context, this isn’t just about forms and files. A Senate investigation not long ago found that almost 70 percent of colleges receiving big checks from Chinese entities didn’t report them properly. That’s a serious compliance gap, and it’s part of what’s driving this harder look at foreign money.
So where does that leave us?
Somewhere between a rock and a red-tape place. On one hand, we want transparency, fair enough. Schools receiving big international funds should be above board. On the other hand, piling on complex paperwork in the name of accountability can tie up resources that should be going toward students, not spreadsheets.
The Department’s still reviewing public comments, so nothing’s final yet. But for those of us who’ve seen how policies like this ripple through campuses through administrative offices, faculty meetings, and yes, even classrooms it’s worth watching closely.
As always in education, the devil’s in the details. And in this case, those details might come printed on government forms.
