Trump Issues Executive Order on Foreign Gift Reporting

In a new executive order, President Trump directed the Department of Education to significantly escalate enforcement of Section 117 of the Higher Education Act, which requires colleges and universities to disclose foreign gifts and contracts.

Citing perceived underreporting and an alleged risk of foreign influence in American higher education, the order, issued on Thursday, outlines a multi-agency approach to improve transparency and accountability. This directive calls for aggressive federal oversight, with heightened consequences for noncompliance, including the potential loss of federal grant eligibility.

The executive order arrives amid broader legislative scrutiny of foreign influence in higher education. Most notably, the DETERRENT Act – passed in a bipartisan vote by the House of Representatives last March– seeks to strengthen penalties for failing to report foreign gifts, enhances reporting thresholds, and requires institutions to reveal the ultimate sources of foreign funding. These efforts reflect growing bipartisan concern in Congress that colleges and universities have become conduits for foreign agendas under the guise of philanthropy and academic collaboration. The convergence of executive and legislative action signals a clear message: institutions receiving significant foreign donations must be prepared to face rising expectations from lawmakers for greater transparency in this space.

For independent colleges and universities, many of which receive little or no foreign funding, this shifting policy landscape nonetheless warrants close attention. While the current scrutiny targets wealthier research institutions, the broadened enforcement mechanisms could sweep in smaller colleges through compliance mandates tied to federal aid eligibility.

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Tim Powers