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  • Date:

    U.S. Department of Education Opens Foreign Funding Investigation into University of Pennsylvania (May 8, 2025)

    U.S. Department of Education (the Department) announced a foreign funding investigation into the University of Pennsylvania after a review of the university’s foreign reports revealed allegedly “inaccurate” and “incomplete” disclosures. Specifically, the Department asserts that the University failed to disclose any foreign funding prior to February of 2019. To ensure compliance with Section 117, the Department requested that the University produce (1) tax records from January 1, 2017, through present; (2) University systems and written procedures; (3) a copy of each written agreement with a foreign government, foreign educational institution, foreign non-governmental entity, or foreign corporate entity detailing admissions agreements for international students, faculty, scholars, and any research personnel; (4) identification of all personnel involved in research collaborations with non-U.S. research institutions, who oversee the University’s compliance with federal Foreign Government Talent Recruitment Program requirements; and (5) a complete list of all foreign gifts, grants, contracts, and/or restricted or conditional gifts, grants, or contracts between the University and any foreign source.

    Topics:

    Endowments & Gifts | International Ventures | Research | Taxes & Finances

  • Date:

    U.S. Department of Education Office for Civil Rights Title IX Investigation into Western California University (May 8, 2025)

    U.S. Department of Education’s Office for Civil Rights (OCR) announced the commencement of a Title IX investigation into Western California University based on allegations that the University refused to comply with Title IX and “ensure sex-separated intimate spaces in federally funded institutions of higher education.” OCR states that it received credible reports that the University did not make changes based on President Trump’s Executive Order and “allowed a male to room with a female in a girls’ dormitory” and that the University “opened an investigation against a female student asking for a male student to leave a female locker room.”  

    Topics:

    Endowments & Gifts | International Ventures | Research | Taxes & Finances

  • Date:

    Transparency Regarding Foreign Influence at American Universities (Apr. 23, 2025)

    Executive Order “Transparency Regarding Foreign Influence at American Universities.” This Order seeks to “end the secrecy surrounding foreign funds in American educational institutions, protect the marketplace of ideas from propaganda sponsored by foreign governments, and safeguard America’s students and research from foreign exploitation.” The Order appoints the Secretary of Education to take all appropriate actions to enforce the requirements of section 1011f of Title 20, U.S.C. to require complete and timely disclosure by higher education institutions of foreign funding, including: (1) reversing or rescinding any actions by the prior administration that permit higher education institutions to maintain improper secrecy regarding their foreign funding; (2) require universities to more specifically disclose details about foreign funding, including the true source and purpose of the funds; (3) provide the American people with greater access to information about foreign funding to higher education institutions; and (4) hold accountable higher education institutions that fail to comply with the law concerning disclosure of foreign funding by way of conducting audits and investigations where necessary to ensure compliance. The Order states that Federal grant funds will not be provided in cases of noncompliance. The White House also issued a Fact Sheet with the Order.

    Topics:

    Endowments & Gifts | International Activities | Taxes & Finances

  • Date:

    U.S. Department of Education Issues Records Request to Harvard University (Apr. 17, 2025)

    The U.S. Department of Education (the Department) sent a records request to Harvard University following a review of the University’s foreign reports, that revealed allegedly incomplete and inaccurate disclosures. To verify compliance, the University must produce within thirty calendar days: (1) a complete and accurate copy of its procedures to achieve compliance with Section 117; (2) a list of all foreign gifts, grants, and contracts from or with foreign sources; (3) the identities of all known parties involved in each of the University’s foreign source gifts; (4) all records regarding or referencing gifts or contracts between the University and foreign governments, without limitation; (5) all records relating to expelled foreign students or foreign students who have had their University credentials canceled from January 1, 2016, through the present; (6) a list of any electronic mail usernames known by Harvard or its personnel to have been utilized by such foreign students; (7) a list of all University personnel with responsibilities relating to the facilitation of the expulsion of foreign students or foreign students who have had their University credentials canceled from January 1, 2016, through the present; (8) a list identifying all full or partial funding sources and amounts for any research conducted by foreign expelled students; and (9) a list of all visiting or temporary researchers, scholars, students, and faculty at the University who are from or affiliated with foreign governments.  

    Topics:

    Contracts | Employment of Foreign Nationals | Endowments & Gifts | Faculty & Staff | Grants, Contracts, & Sponsored Research | Immigration | International Students | International Ventures | Research | Taxes & Finances

  • Date:

    ACE Urges Changes to Foreign Gift Reporting Bill Passed by U.S. House of Representatives (Mar. 31, 2025)

    The American Council on Education (ACE) and several other higher education associations urged lawmakers to revise the “Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions” (DETERRENT) Act, which passed the House of Representatives on March 27, 2025. ACE sent a letter to House leadership on March 25, 2025, outlining concerns with the DETERRENT Act, which it avers would dramatically expand foreign gift reporting requirements for colleges and universities by lowering the threshold for reporting foreign gifts and contracts from $250,000 to $50,000—and to $0 for “countries of concern.” Concern is also expressed for the legislation’s intent to (1) ban institutions from signing contracts with countries of concern unless the secretary of education grants a waiver, (2) require some institutions to maintain public-facing databases listing foreign gifts and contracts to individual researchers, (3) mandate that certain private colleges report foreign investments or holdings, and (4) impose steep new penalties for noncompliance, some tied to eligibility for federal student aid.

    Topics:

    Contracts | Endowments & Gifts | Grants, Contracts, & Sponsored Research | Taxes & Finances

  • Date:

    Financial Accounting Standards Board Lease Survey (Mar. 28, 2025)

    The Financial Accounting Standards Board (FASB) requested participation in a post-implementation review (PIR) survey on leases by May 31, 2025. Survey questions cover: accounting personnel; departments other than accounting and IT; IT systems; preparation costs; audit costs; investor/lender education; and practical expedients. A more detailed review of the contents of the survey can be found here; to participate in the survey, you may click here. 

    Topics:

    Corporate Responsibility | Evaluation of Operations & Staff in the General Counsel’s Office | General Counsel | Taxes & Finances

  • Date:

    Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act Amendment (Feb. 19, 2025)

    The U.S. House Committee on Education and Workforce advanced an amendment (the “Bill”) to the Defending Education Transparency and Ending Rouge Regimes Engaging in Nefarious Transactions Act (“DETERRENT Act”). The Bill, which would require colleges and universities to report gifts and contracts from most foreign countries moved forward on February 19. It is intended to mitigate foreign influence in higher education would reduce the current threshold of $250,000 to $50,000 or greater. The Bill would also lower the reporting threshold to $0 for “countries of concern” as determined by the U.S. Code or the U.S. Secretary of Education, including China, Russia, Iran, and North Korea, and would prohibit postsecondary institutions from contracting with those countries unless the Secretary issues them an annual waiver.

    Topics:

    Contracts | Endowments & Gifts | Grants, Contracts, & Sponsored Research | International Activities | Taxes & Finances

  • Date:

    U.S. Department of Labor Announces Tuition Reimbursement Cannot be Factored into Wage Garnishment (Dec. 18, 2024)

    The U.S. Department of Labor announced through an Opinion Letter that tuition reimbursement does not constitute earnings for purposes of the Consumer Credit Protection Act’s (CCPA) limitations on wage garnishment. The Department concluded that since tuition reimbursement funds “are not related to level of employee pay, services, or performance” and are therefore not earrings as defined by the CCPA, an employer should not include such payments and reimbursements when calculating an employee’s disposable earnings for purposes of determining the maximum amount of an employee’s pay that may be garnished. 

    Topics:

    Compensation & Benefits | Taxes & Finances

  • Date:

    Williams v. Alabama State University (11th Cir. Dec. 23, 2024)

    Opinion affirming the District Court’s Order granting Defendant’s Motion for Summary Judgment. Plaintiff, the former Athletic Director at Alabama State University sued the University alleging violations of the Equal Pay Act (EPA), the Clarke-Figures Equal Pay Act (CFEPA), and Title IX after learning that upon her resignation, the University gave her replacement a larger salary by a difference of $35,000. Plaintiff contends that the pay difference between her and the new Athletic Director was due to her sex. The University made an affirmative defense arguing the new salary was based on the candidate’s extensive leadership, management experience, and education; further noting that the candidate came in with thirteen years of experience compared to plaintiff’s two years of experience. Upon a de novo review, the Eleventh Circuit found the University’s affirmative defense sufficient and affirmed the grant of summary judgment on plaintiff’s EPA and CFEPA claims, reasoning that “[the candidate’s] higher education levels and many years of leadership posts and management experience are legitimate business reasons to justify a higher salary.” In affirming disposition of plaintiff’s Title IX claims, the Court applied Joseph v. Board of Regents of the University System of Georgia (11th Cir. 2024), to conclude that Title IX does not extend to “claims of sex discrimination for employees of educational institutions.”  

    Topics:

    Compensation & Benefits | Taxes & Finances

  • Date:

    U.S. Department of Education DCL on Long-Term Debt Used for Property, Plant, and Equipment – Treatment of Non-bond and Bond indebtedness, and Treatment of Leases (Dec. 20, 2024)

    The U.S. Department of Education Dear College Letter (DCL) on Long-Term Debt Used for Property, Plant, and Equipment – treatment of Non-bond and Bond Indebtedness, and Treatment of leases. The Letter supersedes the April 9, 2020 Electronic Announcement. The Letter includes several scenarios intended to clarify how property, plant, and equipment (PP&E) and non-bonding long-term debt are treated for the composite score calculation for nonprofit and proprietary institutions. Additionally, the Letter provides alternative options for the treatment of bond long-term debt, as well as information about pre- and post- implementation leases.   

    Topics:

    Real Estate Transactions | Real Property, Facilities & Construction | Taxes & Finances

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