The US Department of Education has launched an investigation into the University of Michigan’s foreign funding disclosures following the arrest of two Chinese nationals with ties to the university who were charged with smuggling biological materials into the US.

The investigation, announced Tuesday, will examine whether the university complied with federal reporting requirements related to foreign gifts and contracts. The move comes amid rising national security concerns about foreign influence at major American universities.

Paul Moore, Chief Investigative Counsel at the Education Department’s Office of General Counsel, said the university has a “history of downplaying its vulnerabilities to malign foreign influence” and “recent reports reveal that UM’s research laboratories remain vulnerable to sabotage.”

“Unfortunately, tens of millions of dollars in foreign funding in UM’s disclosure reports have been reported in an untimely manner and appear to erroneously identify some of UM’s foreign funders as ‘nongovernmental entities,’ even though the foreign funders seem to be directly affiliated with foreign governments,” Moore said in a statement. “OGC will vigorously investigate this matter to ensure that the American people know the true scope of foreign funding and influence on our campuses.”

Federal officials have requested a wide range of records from the university, including tax documents, gift agreements with foreign entities, and the names of university personnel who are involved in joint research with non-US institutions.

The department emphasized that the investigation reflects the Trump administration’s continued efforts to enforce transparency and accountability at higher education institutions.

“Today’s investigation into UM reflects the Trump Administration’s ongoing efforts to hold colleges and universities accountable for failing to comply with federal disclosure laws on foreign funding, consistent with President Trump’s Executive Order on Transparency Regarding Foreign Influence at American Universities,” the education department said.

The probe follows the recent arrest of two Chinese individuals accused of smuggling biological materials into the country. The Department of Justice said the arrests were “part of an alarming pattern that threatens our security.” In response to the incident, the University of Michigan stated it is “actively reviewing all relevant policies.”

FBI Director Kash Patel called the arrests “a sobering reminder that the CCP is working around the clock to deploy operatives and researchers to infiltrate American institutions and target our food supply, which would have grave consequences… putting American lives and our economy at serious risk.”