Federal Probe SHAKES University of Michigan

The University of Michigan is under federal investigation for potentially endangering national security by failing to disclose millions in foreign funding, including connections to China.

At a Glance

• University of Michigan faces a federal probe for not disclosing foreign funding.
• Two Chinese scientists linked to the university were charged with smuggling dangerous materials.
• The investigation is part of a national trend scrutinizing foreign influence in academia.
• Potential repercussions include loss of federal funding and increased scrutiny on international collaborations.

Federal Investigation Targets University of Michigan

The U.S. Department of Education has launched an investigation into the University of Michigan for failing to disclose foreign funding as required by law. This probe follows a series of events that highlight the risks of foreign influence in American academia, particularly from China. The university reported around $375 million in foreign funding since January 2021, with $86 million disclosed late, raising red flags about possible violations of the Higher Education Act of 1965.

In June 2025, the arrest of two Chinese scientists linked to the university for allegedly smuggling dangerous biological materials into the United States further escalated concerns. These materials were reportedly intended for use in university labs, pointing to potential national security threats. The Department of Education’s Office of the General Counsel is spearheading the investigation, emphasizing the importance of transparency in foreign partnerships.

National Security Concerns and Academic Transparency

The investigation into the University of Michigan is part of a broader push by Republican lawmakers and federal agencies to scrutinize academic ties between U.S. universities and Chinese institutions. The focus is on preventing espionage, intellectual property theft, and foreign interference in research. Similar investigations have previously targeted prestigious institutions like Harvard and Yale.

The Justice Department has intensified its efforts, notably prosecuting academics for undisclosed foreign ties. This federal probe underscores the critical need for universities to comply with disclosure laws, ensuring that national security is not compromised by foreign financial entanglements. The Education Department’s chief investigative counsel, Paul Moore, criticized the University of Michigan for downplaying risks and failing to provide accurate reports on foreign funding.

Implications for the University of Michigan and Academia

The University of Michigan faces significant repercussions if the investigation reveals substantial noncompliance. The institution risks losing federal funding, damaging its reputation, and facing increased scrutiny of its research operations. The university has 30 days to comply with the Department of Education’s demand for over five years of records on foreign donations, research collaborations, and international personnel.

Furthermore, this case could set a precedent for stricter oversight of foreign funding at universities across the nation. Institutions may need to overhaul their compliance systems and take a more conservative approach to international partnerships. The investigation may also trigger legislative efforts to further restrict foreign involvement in U.S. research, fostering a chilling effect on global academic collaboration, particularly with Chinese entities.

Balancing Security and Academic Freedom

The ongoing investigation has sparked debate on balancing national security with academic openness. Some experts argue that aggressive enforcement could stifle legitimate international collaboration and harm U.S. research competitiveness. Others emphasize the need for transparency and robust compliance to safeguard national interests.

While national security advocates support the investigation as necessary to counter foreign interference, proponents of academic freedom caution against conflating all foreign collaboration with espionage or sabotage. As the investigation unfolds, it will be crucial to navigate these complex dynamics to protect both national security and the integrity of academic research.

Sources:

Inside Higher Ed

Elena Forboe

U.S. Department of Education