UPenn is required to submit detailed information within 30 days, including tax records since 2017 and agreements with foreign governments.

Reports indicate that UPenn received over $2.5 million from Saudi donors, including a $1.2 million donation from the Saudi government in 2022, despite efforts to anonymize donor identities.

This inquiry is part of the Trump Administration's broader initiative to enforce stricter compliance with laws mandating universities disclose foreign gifts and contracts valued at $250,000 or more annually.

The investigation's letter, signed by Chief Investigative Counsel Paul Moore, indicates that UPenn misidentified many foreign funding sources and failed to disclose the identities of numerous foreign donors, which is now prohibited by federal regulations.

This investigation arises amid growing concerns about antisemitism on college campuses, with evidence linking foreign donations, particularly from Middle Eastern sources, to an uptick in anti-Israel and antisemitic incidents.

Failure to comply with the investigation could lead to enforcement actions from the Department of Justice or loss of federal funding eligibility.

While UPenn has not publicly commented on the investigation, representatives from other institutions like Harvard and U.C. Berkeley have stated they are in full compliance with foreign funding laws.

The investigation was officially announced on May 8, 2025, highlighting ongoing scrutiny over compliance with federal regulations regarding foreign contributions to U.S. educational institutions.

The U.S. Department of Education has launched an investigation into the University of Pennsylvania regarding alleged inaccuracies in its financial disclosures related to foreign donations.

UPenn has faced scrutiny previously for its connections with Chinese entities and ties to former officials of the Biden administration, raising further questions about its foreign funding practices.

Additionally, UPenn's reporting included 90 incorrect identifications of foreign gifts and contracts between July 2021 and July 2023, suggesting a lack of diligence in compliance.

Experts have raised alarms about potential national security risks and compromised academic integrity due to undisclosed foreign funding in U.S. colleges and universities.