University of Michigan Faces Federal Investigation Over Foreign Funding Disclosures

On Tuesday, the United States Education Department announced the initiation of a foreign funding investigation into the University of Michigan. The department cited "inaccurate and incomplete disclosures" discovered during a review of the university's foreign reports as the basis for the investigation.

As part of the investigation, the Education Department has requested that the university provide specific documentation within 30 days. This includes tax records related to foreign funding, a comprehensive list of foreign gifts, grants, and contracts, and other relevant documents.

The University of Michigan has responded with a statement indicating its full cooperation with federal investigators. The university emphasized its commitment to complying with the law and strongly condemned any actions that could harm, threaten national security, or undermine its public mission.

The Education Department also highlighted concerns regarding the vulnerability of the university's research laboratories to potential sabotage. This concern was linked to charges brought by the US Justice Department against two Chinese nationals allegedly connected to a University of Michigan lab.

In June, federal prosecutors accused two Chinese nationals of smuggling a dangerous biological pathogen into the US, which they claimed could be used as an agricultural "terrorism weapon." The complaint alleges that Zunyong Liu smuggled the pathogen into the US while visiting his girlfriend, Yunqing Jian, in July 2024. Liu reportedly admitted to smuggling the fungus to conduct research at a University of Michigan laboratory where his girlfriend worked. However, experts have questioned the FBI's assessment of the smuggled crop fungus as a threat.

The Education Department stated that the university has received $375 million in foreign funding since 2020 and was late in reporting $86 million of that amount. US law mandates that universities report donations from foreign sources exceeding $250,000 annually.

This investigation follows a pattern of similar probes initiated by the Trump administration against prominent US universities. These investigations have been criticized and have addressed various issues, including campus protests, transgender rights, climate initiatives, and diversity, equity, and inclusion programs. Similar investigations have been opened at Harvard University, the University of Pennsylvania, and the University of California, Berkeley.