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Education Department Launches Probe Into University of Michigan’s Foreign Funding Disclosures

The department demands records within 30 days after finding tens of millions in late foreign funding reports misclassified as nongovernmental gifts

A detail view of the University of Michigan Wolverines "Go Blue" logo prior to an NCAA college football game between the University of Michigan Wolverines and the Michigan State University Spartans on Saturday, Oct. 7, 2017 in Ann Arbor, Mich.
United States Department of Education logo and U.S. flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • The Department of Education’s Office of General Counsel opened a formal investigation on July 15 under Section 117, requiring detailed tax and gift records within 30 days.
  • Investigators allege the university reported tens of millions in foreign funds late and misidentified state-affiliated donors as nongovernmental entities.
  • The inquiry follows June DOJ charges against two Chinese nationals accused of smuggling biological materials into a Michigan lab in what officials called a potential agroterrorism plot.
  • The action reflects President Trump’s executive order on transparency and continues similar probes at Harvard, the University of Pennsylvania and UC Berkeley.
  • The University of Michigan has pledged full cooperation and is reviewing its reporting policies to meet federal legal requirements.