Two Universities, One With Ties to China, Face Scrutiny Over Sketchy Financial Reporting

Department of Education Sec. Linda McMahon is the only Cabinet Secretary involved in the ongoing dismantling of her own agency, but there may be one thing the department remains particularly well-suited for: The Education Department has initiated an investigation into the University of North Dakota (UND) and Duke University in North Carolina over misleading financial reports regarding foreign funding. It could put both universities' federal funding in jeopardy.

Foreign funding going to American universities and colleges should be TRANSPARENT.

— U.S. Department of Education (@usedgov) September 16, 2026

Both universities are facing allegations of submitting incomplete financial disclosures, which violates Section 117 of the Higher Education Act of 1965. In accordance with federal law, institutions of higher learning are required to publicly report annually all foreign-sourced gifts and contracts valued at $250,000 or more.

Foreign funding going to any American university immediately raises questions of national security, and rightly so at Duke's Kunshan University, which is a joint campus with China's Wuhan University and was established in 2013. A 2025 House Select Committee letter claims that Wuhan University, overseen by China's State Administration of Science, Technology, and Industry for National Defense, “trains cyber warfare specialists.”

There may also be Chinese fingerprints at the University of North Dakota, where the investigation is focusing on possible foreign financial ties to the School of Aerospace and uncrewed aerial systems research. This institution has national security implications; Chinese aviation companies “known to have close associations with China’s military," have invested in it. 

But a more disturbing fact might be that these two schools are not the only ones whose records are in question. In August, the Department of War advised over 30 universities to review and update any foreign connections or risk federal funding. Another Department of War concern is any ties to Confucius Institutes. These are educational partnerships funded by the Chinese government designed to promote Chinese culture and language. But just how far-reaching is their influence? Sarah Rogers is the Under Sec. of State for Public Diplomacy and said,

"Our reviews found real gaps in how Duke and UND have handled their Section 117 obligations. [D]isclosures submitted late, key details left out, and at least one foreign government partner mischaracterized as a non-governmental entity.”

OPINION: “The Education Department should release the names of foreign counterparties and allow the American public to see who is funding its universities,” L.J. Eads argues.

— The Washington Times (@WashTimes) September 16, 2026

Another disturbing fact: During the 2023-2024 school year, Chinese students made up the largest share of international students in the nation, and at Duke, they comprised 46 percent of the student population, making them the leading country of origin. At the University of North Dakota, the number of Chinese students is relatively small. Duke and UND have both been given 30 days to provide the records and information in question and verification that they are complying with Section 117 requirements. 

Turns out that national security, not diversity, equity, and inclusion, needs to be the top priority on America's college campuses.

U.S. universities failed to properly disclose billions in foreign funding. Many already have deep financial ties to China. We need the Education Department to release the names of the foreign counterparties. Who is really funding America’s universities?https://t.co/KaWZy0N1dZ

— Steve Forbes (@SteveForbesCEO) September 15, 2026

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