Education Department Opens Investigation into UPenn Over Foreign Funding Disclosures

The Department of Education has launched an investigation into the University of Pennsylvania over allegations that the institution failed to accurately report its foreign funding donations.
In a statement released this week, the department said its Office of the General Counsel (OGC) opened the investigation and issued a formal records request to the university. The action followed a review of UPenn’s foreign funding reports, which the department described as “inaccurate and incomplete.”
As part of the probe, the department is seeking information related to the university’s tax filings, as well as details on all foreign gifts, grants, contracts, and agreements since 2017.
“UPenn has a troubling Section 117 compliance history, having failed to disclose any foreign funding until February of 2019 despite a decades-long statutory obligation to do so,” said acting general counsel Tom Wheeler. “Although the previous Administration degraded the Department’s enforcement of universities’ legal obligations to disclose foreign gifts and contracts, the Trump Administration will vigorously uphold the law and ensure universities are transparent with their foreign gifts and investments.”
The department is also requesting records involving all staff members responsible for conducting research in collaboration with foreign entities, as well as those connected to the Foreign Government Talent Recruitment Program.
Last month, President Donald Trump signed an executive order aimed at increasing transparency among universities regarding foreign donations and investments. Several institutions, including Harvard University, have since come under review by the administration.
UPenn was also the focus of federal scrutiny last month when the Department of Education threatened to revoke its federal funding for not complying with the federal government’s order to protect women’s sports from transgender athletes. The department issued an ultimatum, citing a violation of Title IX regulations.