The Trump administration's recent inquiries into other institutions, such as Harvard University, indicate a wider investigation into foreign funding across multiple universities.

The probe aims to assess compliance with federal laws regarding foreign donations and transparency in funding sources, amidst ongoing tensions about national security and foreign interference.

Additionally, the Education Department's letter highlighted that Penn made errors in reporting transactions and did not disclose the identities of numerous foreign donors, which is now prohibited.

Officials are particularly concerned about potential ties to foreign governments, especially from adversarial nations, as part of a broader scrutiny of foreign influence in American higher education.

This inquiry reflects ongoing concerns about compliance with federal regulations regarding foreign contributions to U.S. educational institutions.

The investigation is part of a broader crackdown by the Trump administration on U.S. universities, which has included scrutiny over campus protests and policies on transgender rights.

Penn has been under scrutiny due to its notable relationship with Chinese entities and ties to former officials of the Biden administration.

As of now, the University of Pennsylvania has not publicly commented on the investigation or the allegations made against it.

This investigation follows an executive order by former President Trump aimed at enhancing transparency regarding foreign funding in higher education, threatening federal funding for non-compliant institutions.

The Department of Education initiated an investigation into the University of Pennsylvania (Penn) on May 8, 2025, due to alleged inaccuracies in foreign funding disclosures.

The investigation revealed that Penn failed to promptly report 61 of its 115 foreign funding disclosures submitted in January 2025, indicating a lack of compliance with federal regulations.

In March 2025, the administration suspended $175 million in federal funding to UPenn, citing violations of federal sex discrimination laws related to its policies on transgender athletes.