
UC Berkeley faces federal investigation over Chinese funding as Trump administration intensifies scrutiny of elite universities’ foreign financial ties.
At a Glance
- The Trump administration launched an investigation into UC Berkeley’s failure to disclose $220 million in Chinese government funding
- The inquiry centers on the Tsinghua-Berkeley Shenzhen Institute and possible violations of federal disclosure laws
- Education Secretary Linda McMahon highlighted the university’s “apparent failure to fully and accurately disclose significant funding”
- UC Berkeley claims it has been cooperating with federal inquiries and plans to unwind its partnership with Tsinghua University
- This investigation reflects broader administration efforts targeting elite universities through enforcement of foreign funding disclosure requirements
Federal Scrutiny Intensifies Over Chinese Funding
The Trump administration has launched a formal investigation into the University of California, Berkeley, focusing on allegations that the institution failed to disclose millions in foreign funding from China. The probe specifically targets UC Berkeley’s financial relationship with Tsinghua University, a prestigious Chinese institution with close ties to the Chinese government. According to federal officials, the investigation centers on potential violations of Section 117 of the Higher Education Act of 1965, which requires universities to report foreign gifts and contracts exceeding $250,000.
Reports indicate UC Berkeley may have failed to disclose approximately $220 million received from the Chinese government for the Tsinghua-Berkeley Shenzhen Institute (TBSI), established in 2016. The Department of Education has demanded records related to this partnership and all foreign funding received by the university. This action follows President Trump’s signing of an executive order designed to strengthen enforcement of Section 117 reporting requirements, part of a broader initiative to address concerns about foreign influence in American higher education.
National Security Concerns Versus Academic Collaboration
The investigation comes amid heightened concerns about intellectual property theft and the potential for sensitive research to benefit foreign militaries. A report from Republican members of the House Select Committee on the Chinese Communist Party recently highlighted how U.S. tax dollars may inadvertently aid China’s technological and military advancements through academic collaborations. The TBSI partnership has become a focal point of these concerns, as Tsinghua University maintains strong connections to China’s government and military establishment.
“The department will begin by thoroughly examining UC Berkeley’s apparent failure to fully and accurately disclose significant funding received from foreign sources,” U.S. Secretary of Education Linda McMahon said.
UC Berkeley has pushed back against the allegations, stating it only conducts research that is “openly disseminated around the world” and that it was “not aware of any research by Berkeley faculty at TBSI conducted for any other purpose.” The university has also indicated plans to unwind its partnership with Tsinghua University, though it maintains it has followed proper disclosure protocols. This investigation represents part of a broader scrutiny of elite universities that includes a similar probe into Harvard University’s foreign financial ties.
Broader Implications for American Higher Education
The UC Berkeley case highlights growing tensions between national security priorities and the international collaboration that has become integral to American research universities. Critics of the administration’s approach warn that aggressive enforcement of Section 117 could threaten the fundamental structure of American research institutions. Some education experts suggest these actions might ultimately isolate American universities from valuable international partnerships necessary for maintaining scientific leadership and innovation.
“Over the course of the last two years, UC Berkeley has been cooperating with federal inquiries regarding [Section] 117 reporting issues, and will continue to do so,” Dan Mogulof, a spokesperson for the university, said.
The investigations into UC Berkeley and Harvard appear connected to Project 2025, which identifies Section 117 as a potential tool to reduce federal funding to elite educational institutions perceived as ideologically opposed to the administration. This has raised concerns about whether these investigations are primarily motivated by national security or political considerations. Regardless of motivation, universities now face increasing pressure to thoroughly document their foreign financial relationships or risk substantial federal consequences.
“All of these are really existential threats to the research university as it currently exists,” said Kevin Kinser, a professor of education policy at Pennsylvania State University.