Elite American universities have accepted millions of dollars from foreign sources on federal watchlists, including entities linked to the Chinese military, according to government data.

State and Education Department officials reported that dozens of universities received $27.6 million from such foreign entities during the second half of 2025. Institutions involved include Northwestern University, University of California (Irvine and Berkeley), University of Connecticut, and Bryant University.

An Education Department spokeswoman told Fox News Digital, "American universities have received nearly $405 million from counterparties of concern — entities that pose a very real risk to our national security and that of our allies."

The Aero Engine Corporation of China, listed on the Treasury Department’s Foreign Assets Control List due to its ties with the Chinese military, paid $7.8 million to Northwestern University, UC Irvine, and the University of Connecticut over recent years.

Following the full acquisition of a Zhuhai institution by the Beijing Institute of Technology (BIT) and BIT's addition to the Department of Defense's 1286 list, Bryant University began terminating its relationship, ceased new student enrollment, and is completing a teach-out period ending June 30, 2027.

The Trump Administration's updated Section 117 Dashboard aims to increase transparency about foreign funding sources, enabling students, families, and taxpayers to know who is providing financial support while equipping the State Department to protect national interests.

A letter from Under Secretary of State for Public Diplomacy Sarah B. warned that if these universities continue their relationships with flagged entities, they could face restrictions on federal grant funding.

Experts note this issue has been discussed for years within research security circles, with some describing past policy implementation as a "huge policy fail" due to lack of follow-through.

Sources