The U.S. Department of Education has launched an investigation into the University of Michigan (U-Mich) for not fully reporting foreign funding. This inquiry started on July 15 and demands documents related to foreign funding over the past five years.
The investigation rests on Section 117 of the Higher Education Act of 1965, which requires schools to disclose any foreign gifts or contracts worth more than $250,000. Historically, this section wasn’t enforced much, but it gained traction during the Trump administration, leading to probes into institutions like Harvard and Yale.
In April 2025, an executive order linked compliance with Section 117 to the False Claims Act. This means universities could face serious financial penalties for any violations. A recent bipartisan bill called the DETERRENT Act proposes even harsher fines, underscoring the increasing scrutiny universities are under regarding foreign funding.
Recent news has highlighted two researchers from U-Mich, Yunqing Jian and Chengxuan Han, who face serious charges related to smuggling biological materials. The U.S. Department of Justice (DOJ) labeled one of the materials as a potential agroterrorism weapon, raising concerns about national security. Critics argue that these claims are exaggerated. Caitilyn Allen, a plant pathologist, asserted that the situation boils down to a customs violation and not terrorism. An academic from Oakland University called the terrorism designation absurd. Both researchers have been held without bond, facing possible lengthy prison sentences.
This investigation isn’t just about compliance; it’s driving a wedge between U.S. academic institutions and international collaboration. The narrative surrounding the investigation has stirred anti-Chinese sentiment, which some believe could be a push for a more militaristic stance in U.S. foreign policy. Such political maneuvering can stifle the kind of open scientific exchange that benefits everyone, reminding us of similar patterns from the Cold War era, when suspicion often overshadowed collaboration.
A separate investigation is now underway into U-Mich’s “Dreamer scholarship,” which aids undocumented students. This aspect of the investigation raises questions about the legality of allowing non-citizens to compete for scholarships, pulling universities deeper into a political quagmire.
As U-Mich navigates these challenges, the broader implications on academic freedom and international cooperation are evident. Experts like Professor Ann Chih Lin advocate for open science and dismiss fears of espionage as overstated. Lin argues that the benefits of outreach and collaboration far outweigh perceived risks.
In a landscape increasingly defined by fear, it’s essential to remember that schools should serve as centers of learning and exchange, not battlegrounds for political ideology. The stakes are high, with universities caught between their mission to educate and the pressures of government scrutiny.
For a deeper dive into the intricacies of foreign funding compliance, check the U.S. Department of Education’s guidance on these matters.
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University of Michigan, U-Mich, Jian, Han, agroterrorism, smuggling, Zheng, Lin
