The U.S. Department of Education (DOE) announced an investigation into Harvard and Yale on Wednesday and accused both universities of failing to report foreign gifts and contracts worth hundreds of millions of dollars.
The federal agency claimed Yale failed to report at least $375 million in foreign transactions and hasn't reported any gifts or contracts for the last four years. The DOE did not say how much Harvard might have failed to report.
Section 117 of the Higher Education Act requires American Title IV-eligible colleges and universities to report any foreign gifts or contracts that exceed $250,000 in value. Institutions must also disclose any foreign ownership or control, twice each year -- something many schools have failed to do, according to federal officials.