The U.S. Department of Education and the U.S. Department of State have opened a foreign funding investigation into the University of North Dakota, focusing heavily on financial disclosures tied to its critical uncrewed aircraft systems program, federal officials announced Tuesday.
The federal inquiry—which also encompasses Duke University—centers on alleged incomplete, inaccurate, and untimely financial reporting governed by federal oversight rules. According to federal notices, the probe directly targets compliance gaps within institutions receiving substantial taxpayer support for advanced and emerging technology development.
Regulatory Triggers and Section 117 Obligations
The joint federal scrutiny stems from legal mandates under Section 117 of the Higher Education Act of 1965. Under this statute, colleges and universities receiving federal financial assistance are legally required to disclose foreign-source gifts and contracts valued at $250,000 or more annually.
According to Valley News Live, the investigations immediately follow a House Foreign Affairs Subcommittee hearing held Monday that examined foreign influence operations involving China and Cuba. Federal authorities stated that their reviews uncovered systemic reporting failures at both targeted institutions.
“Unfortunately, it appears that both Duke and UND have provided untimely and incomplete foreign funding disclosures, which include erroneously identifying certain governmental partners as ‘non-governmental,’” said Under Secretary of Education Nicholas Kent, as reported by Valley News Live. Kent added that both agencies expect full cooperation to ensure accountability in reporting foreign financial backing.
Under Secretary of State for Public Diplomacy Sarah B. Rogers echoed those concerns in the federal announcement. “Our reviews found real gaps in how Duke and UND have handled their Section 117 obligations, disclosures submitted late, key details left out, and at least one foreign government partner mischaracterized as a non-governmental entity,” Rogers stated, emphasizing that the law mandates accurate and timely reporting.
Focus on UND Aerospace and National Security Stakes
At the center of the University of North Dakota inquiry is its School of Aerospace Sciences. Federal notices point specifically to the university’s uncrewed aircraft systems program, which federal agencies describe as critical to United States national security interests.
Investigators noted that these aerospace research efforts have drawn significant investment and active involvement from Chinese aviation companies maintaining close associations with China’s military. By comparison, the parallel investigation into Duke University centers on its 2013 partnership with China’s Wuhan University—which is overseen by a Chinese government body that plays a role in the country’s national defense science and technology programs—to establish Duke Kunshan University.
Mandated Records and the 30-Day Compliance Window
Under the terms of the federal notice, the University of North Dakota has been given a strict 30-day window to produce a comprehensive suite of records. The required documentation spans multiple operational areas:
- Tax records associated with foreign involvements and partnerships
- Documentation outlining the university’s internal Section 117 compliance structure
- Agreements with foreign entities regarding international students, faculty, and research personnel
- Comprehensive records of international research collaborations
- Documentation regarding UND personnel participation in foreign government talent programs
- Complete copies of reportable foreign gifts, grants, and contracts
Duke University faces similar recordkeeping mandates and a parallel 30-day timeline to submit its requested files to the Departments of Education and State.
Next Steps and Institutional Accountability
The Departments of Education and State have signaled they will maintain coordinated oversight to enforce strict adherence to federal disclosure laws.
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