It could be a big boost for transparency among higher education institutions.
The Daily Signal reports the new portal will make it easier for higher education to report foreign donations. Madison Doan of The Heritage Foundation notes accuracy and underreporting have been a longstanding concern.
Before launching the system, the department conducted extensive beta testing with several universities to solicit feedback, identify any bugs and ensure institutional familiarity with the portal’s reporting features, The Daily Signal reported.
Congress first required U.S. universities to publicly report certain foreign gifts and contracts in 1986.
Under Section 117 of the Higher Education Act of 1965, institutions must report foreign gifts and contracts totaling $250,000 or more in a calendar year. Responsibility for enforcing compliance, collecting disclosures, and disseminating the data was placed with the Department of Education.
“National Association of Scholars actually produced a couple of different reports, but they reported that under the Biden administration between 2021-2022 there was at least a billion dollars in foreign funding that went underreported,” Doan said.
She says for 30 years the Department of Education made little effort to enforce policies regarding reporting of foreign donations. She notes that's changing under Trump.
“A report from the Office of General Counsel on the Department of Education in 2020 said up to 70% of all US colleges and universities are failing to comply with the law and those that do substantially underreport,” Doan said.
She reports the Deterrent Act, which lowers the reporting threshold from $250,000 to $50,000 annually, has passed in the House, but it has stalled in the Senate.
