Investigation of Chinese Student Scholarships Raises Concern

The Department of Justice is investigating Harvard University scholarships earmarked for Chinese students, raising questions about how similar funding at other institutions could be affected.

Earlier this summer, the DOJ wrote in a letter to Harvard that it had audited the university’s gifts from Chinese donors and uncovered funds designated for scholarships “with preference given to students from particular countries.” The department said it was investigating those scholarships and demanded further information about those donations, as well as details about the recipients of the scholarships.

The Trump administration has been scrutinizing foreign donations to universities since last year, arguing that such gifts raise concerns about national security and foreign influence over institutional research priorities. But the DOJ’s central concern in this case seems less about the source of the money than the fact that it is set aside for Chinese students, which the department wrote in its letter is a violation of Title VI, the statute that prohibits discrimination on the basis of race, color and national origin in programs that receive federal funding.

“Harvard appears to be accepting these funds with restrictions and conditions from China-based sources and then providing this student financial aid with preference to foreign students based on their national origin, presumably Chinese, to the potential detriment of persons of other national origins including citizens of the United States,” reads the letter, signed by Assistant Attorney General Harmeet K. Dhillon. It includes an appendix listing 13 organizations that have apparently donated funds toward scholarships for Chinese students.

The rationale mirrors the Justice Department’s arguments disputing the legality of scholarships for members of other groups, including racial minorities and LGBTQ+ students. Since Trump came into office, the number of race-based scholarships has plummeted, as numerous institutions have reworked such awards to use race-neutral criteria instead.

But this is the first time the department has raised alarm about scholarships based on country of origin. The letter came two months after an organization calling itself the Global Philanthropy Accountability Project published a press release drawing attention to large donations from SOHO China Foundation, the charitable foundation of a massive Chinese real estate firm, to Harvard and Yale Universities. The donations were made in 2014; Yale’s press release at the time said the funds would provide scholarships to low-income Chinese students.

The DOJ lists the “Beijing SOHO China Urban Cultural Foundation”—which appears to be a longer version of the foundation’s name, according to internal documents—among the organizations in the appendix of its letter.

It is also unclear who is responsible for the Global Philanthropy Accountability Project; the press release quotes a principal researcher who is identified only as Steven. Inside Higher Ed reached out to two email addresses listed on the organization’s website, but both bounced back.

Beyond Harvard

Scholarships based on a student’s country of origin are much less common than those that include race as a criteria, according to Jackie Bright, president and CEO of the National Scholarship Providers Association.

Still, numerous colleges do offer scholarships to students from specific countriesc or regions. They range from small grants of a few hundred dollars to much more substantial awards, like the African Scholars program at Wesleyan University, which was launched in 2023 and offers a full ride to about 10 African students annually.

Many of these awards are funded by donations from international alumni, faculty members or other individuals with close ties to the university.

“A lot of times, these scholarships … [are drawn from] endowments that are created by private donors, often because they care about populations from their parts of the world to have access to education,” said Fanta Aw, executive director and CEO of NAFSA: Association of International Educators. “Most times it would be alumni or friends of the university that really feel that the way they can pay it forward is through scholarships that would provide and open up greater access to students who, many times, otherwise would not have access to those opportunities. So, it’s good for the students, it’s good for the institutions and it’s good for [the U.S.] when it comes to people-to-people exchange.”

Clay Harmon, executive director of AIRC: The Association of International Enrollment Management, said this isn’t the first time the legality of such scholarships has been called into question.

“It is a bit of a gray area. I do believe that every institution makes their own risk assessment and evaluation. There are many examples out there of scholarships intended for [students from a specific country] and so it seems like there’s a strong history of institutions feeling comfortable with that,” he said. “But I do know of particular public institutions or systems around the country that are very sensitive about this and are much more cautious.”

He added that he wouldn’t be surprised if institutions decided to make small tweaks to the scholarships’ criteria to avoid scrutiny. Instead of requiring recipients to have been born in a specific country, he suggested, perhaps the scholarship would be open to individuals who have a particular interest in the country or spent time living there.

According to Bright, it doesn’t look like any such scholarships have changed their language or criteria so far.

Only about 12.6 percent of international undergraduate students rely on institutional funding to pay for their studies, according to the Institute of International Education’s Open Doors report. But selective institutions with large endowments, like Harvard, often cover full financial need for both domestic and international students; Harvard specifically provides financial assistance to international students at a higher rate than to domestic students, according to a 2025 analysis by The Boston Globe.

Regardless, taking away opportunities for international students to fund their education further discourages them from studying in the U.S., Harmon said, adding to a long list of Trump administration actions that experts say are making the country a far less appealing destination.