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Federal Funding Concerns for Elite Universities Linked to Foreign Entities

Elite American universities have received millions in funding from foreign entities on federal watchlists, including ties to the Chinese military. The Education Department reported that these institutions received $27.6 million in the latter half of 2025, with potential restrictions on federal funding if relationships with these entities continue. The Aero Engine Corporation of China and Sun Yat-sen University are among the notable contributors.

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Aero Engine Corporation of China
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Sarah B. Rogers

Elite American universities have received substantial funding from foreign sources that are on federal watchlists, including some associated with the Chinese military, according to government data. Education Department officials reported that dozens of universities received a total of $27.6 million from these foreign entities during the second half of 2025. Institutions mentioned include Northwestern University, the University of California, Irvine, the University of Connecticut, Bryant University, and the University of California, Berkeley.

An Education Department spokeswoman stated that American universities have accepted nearly $405 million from entities deemed a risk to national security. The Trump Administration has implemented changes to increase transparency regarding these financial relationships through the updated Section 117 Dashboard.

Under Secretary of State for Public Diplomacy Sarah B. Rogers warned that if these universities continue their relationships with foreign entities on the watchlists, they may face restrictions on federal grant funding. The Aero Engine Corporation of China, which is linked to the Chinese military, has contributed $7.8 million to several universities over the years.

Documents filed with the Department of Education do not specify how the funding was utilized. President Trump issued an executive order in April 2025 to enhance the collection of information regarding foreign funding sources for universities.

The Aero Engine Corporation of China is also categorized as a military end-user entity by the Department of Commerce, as it develops engines for military aircraft. LJ Eads, a research security expert, noted that there has been a long-standing conversation about the need for better implementation of restrictions on foreign funding.

UC Berkeley has received funds from Chinese entities on federal watchlists, including a $7.6 million grant from Sun Yat-sen University, which is associated with China's National Supercomputing Center. A spokesman for UC Berkeley stated that the university complies with all relevant regulations regarding foreign funding and is reviewing the government's data.

Bryant University had a $22.6 million contract with the Beijing Institute of Technology for an academic program, which has since been terminated. The university clarified that the program was solely for educational instruction and did not involve research or defense-related activities.

As of the report date, Northwestern University, UC Berkeley, UC Irvine, and the University of Connecticut had not responded to requests for comment regarding these funding issues.

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Elite universities face federal cash squeeze over millions tied to China-linked entities

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Federal Funding Concerns for Elite Universities Linked to Foreign Entities