Major U.S. universities have received millions of dollars in funding from foreign entities on U.S. government watch lists, according to a review of university funding records. The State Department and Education Department disclosed that $27.6 million was received by top American research institutions in the second half of last year from entities on federal watch lists, which flag organizations with ties to foreign government interests. The Trump administration has emphasized the need to scrutinize academic partnerships that could threaten national security.
In one case, a Chinese company developing aeronautics for the People's Liberation Army provided $7 million to three U.S. universities, with the largest amount—$22.6 million—going to Bryant University in Rhode Island for a 50-year contract with the Beijing Institute of Technology. Under Secretary of State for Public Diplomacy Sarah B. Rogers warned university boards that future grant-making agencies will check for funding from blacklisted entities, potentially leading to the withdrawal of federal funding.
The House Select Committee on the Chinese Communist Party has pressed for a government-wide prohibition on federal research ties to blacklisted entities. Rep. John Moolenaar (R-Mich.) and Sen. Jim Banks (R-Ind.) introduced legislation in May to bar universities and national laboratories from using federal research funds to collaborate with restricted entities. The National Science Foundation plans to implement a similar restriction in fiscal year 2027. However, Rep. Ro Khanna (D-Calif.) raised concerns that budget cuts and personnel changes could weaken enforcement efforts.
The crackdown follows investigations into Chinese defense-linked institutions and the recovery of tens of millions of dollars through agency enforcement. The hearing on July 15, 2026, highlighted the need for stronger controls to prevent sensitive research from reaching China’s military.