State Department Launches National Security Review of $1.1B in Qatari University Funding

The Trump administration announced Monday that the U.S. State Department is joining a federal review of foreign funding at American colleges and universities, stepping up efforts to address what officials describe as “malign foreign influence” in higher education.

The announcement follows new federal disclosures showing that U.S. colleges and universities reported 8,300 foreign funding transactions totaling $5.2 billion in 2025 alone. According to the Department of Education, Qatar was the largest single source of funding last year at $1.1 billion, followed by Britain at $633 million and China at $528 million.

The administration is now framing the issue as one of national security rather than simple regulatory compliance.

President Trump has repeatedly threatened to cut federal funding to universities over pro-Palestinian protests tied to U.S. ally Israel’s war in Gaza, as well as over diversity, equity and inclusion programs, climate initiatives and transgender policies. Critics say such threats raise concerns about academic freedom and free speech on campus.

Under Secretary for Public Diplomacy Sarah Rogers said the State Department’s new role would “ensure an invigorated compliance assurance effort by the federal government.”

“The Department of State will be applying our national security expertise and our expertise countering foreign malign influence to bolster oversight efforts by the Department of Education,” Rogers told reporters during a briefing at the State Department.

The enforcement push centers on Section 117 of the Higher Education Act, which requires colleges that receive federal funding to report foreign gifts or contracts valued at more than $250,000. In April 2025, Trump signed an executive order calling for stricter enforcement of that law. The Education Department launched a new online reporting portal in December to collect the disclosures.

Since Section 117 was enacted in 1986, universities have reported more than $67.6 billion in foreign gifts and contracts. Education officials said more than $2 billion in recent disclosures were submitted late, raising compliance concerns.

Federal scrutiny of foreign funding in higher education is not new. In 2019, a U.S. Senate subcommittee on investigations issued a report examining China’s impact on the American education system, prompting renewed enforcement of disclosure requirements at the time.

Despite the latest escalation, officials declined to provide specific examples of how foreign funding had improperly influenced universities. They said their focus is on improving transparency and ensuring institutions comply with existing law.