U.S. universities received $405 million from now-sanctioned foreign entities over several years, including $309 million from Chinese organizations, according to a Newsweek analysis of federal disclosure records.
The Newsweek report found dozens of American universities accepted money from entities in China, Russia, Serbia and Israel that have since been placed on U.S. government sanctions or restriction lists.
The administration's renewed focus comes as CBS News reported that federal officials reviewed Education Department disclosure records and identified dozens of major U.S. research universities that received $27.6 million during the second half of 2025 from foreign entities appearing on one or more U.S. government watch lists.
According to CBS News, State Department officials recently sent letters to university governing boards advising them that federal agencies awarding research grants will consider whether institutions receive funding from organizations on government watch lists when evaluating future grant applications.
The letters urged universities to strengthen oversight of foreign financial relationships because of potential national security concerns.
"I urge you ... to ensure heightened diligence on this matter which has important national security implications for our country," Sarah Rogers, the State Department's acting undersecretary for public diplomacy and public affairs, wrote in the letters, according to CBS News.
The Education Department requires colleges and universities to disclose qualifying gifts and contracts from foreign sources under Section 117 of the Higher Education Act.
The increased scrutiny comes amid growing concern in Washington over foreign influence in academic research.
"This has been a conversation going on for years now in research security circles," LJ Eads, director of research security at the nonprofit Council on Governmental Relations, told CBS News.
Neetu Arnold, a senior fellow at the Manhattan Institute, said greater transparency is beneficial but cautioned against assuming all foreign funding poses a threat.
"A lot of foreign funds aren't necessarily harmful, but some of it could be a concern," Arnold told CBS News.
Newsweek reported the University of California, Berkeley, received more than $87 million from entities that later appeared on U.S. sanctions or restriction lists, including more than $25 million from Chinese organizations. Other universities identified in the report included Harvard University, the University of Pennsylvania and Stanford University.
The reports come as the Trump administration has stepped up efforts to curb foreign influence in higher education and tighten oversight of research partnerships involving countries considered strategic competitors, particularly China.
Universities have defended international research partnerships, saying they promote scientific innovation and medical and technological advances while helping attract global talent.
Higher education organizations also have said foreign funding represents a relatively small share of university research budgets, which rely primarily on federal grants and domestic sources.
Administration officials told CBS News they believe existing disclosure requirements have not been consistently enforced and that the government has lacked an effective system for comparing reported foreign donors against federal watch lists.
Officials said the increased oversight is intended to better protect federally funded research and prevent sensitive technologies from benefiting foreign adversaries.