Investigation Uncovers Misallocated U.S. Taxpayer Funds to China

Fri Jul 18 2025 14:20:47 GMT+0300 (Eastern European Summer Time)
Investigation Uncovers Misallocated U.S. Taxpayer Funds to China

A new report reveals significant misreporting of U.S. taxpayer dollars sent to China, raising concerns among lawmakers and transparency advocates.


An investigation led by Sen. Joni Ernst has found that the Biden administration transferred $18 million in U.S. taxpayer money to various projects in China, with much of it unaccounted for in federal spending databases, igniting outrage and calls for accountability.

In a revealing investigation spearheaded by Sen. Joni Ernst (R-IA), it has come to light that the Biden administration has directed $18 million in U.S. taxpayer money toward projects in Communist China, with millions of dollars either hidden or entirely missing from federal spending databases. This alarming discovery has ignited outrage among lawmakers and transparency advocates alike.

A specific focus of the inquiry highlighted that at least $4 million in funds was either unaccounted for or inaccurately reported on the government’s grant tracking site, USAspending.gov. The substantial funding was predominantly funneled through the State Department and the Department of Health and Human Services (HHS) to support a diverse range of China-based initiatives, including:

- Diversity, Equity, Inclusion, and Accessibility (DEI) training at U.S. consulates.
- Pro-LGBT events held within China.
- Public art billboards and bicycle parking facilities.
- Various climate change efforts.
- Research into rat populations.

Moreover, part of this financial flow included $4.8 million allocated to Peking University in Beijing for a so-called “China Health and Retirement Longitudinal Study.” Ernst's team also uncovered an additional $1.08 million sent to Peking researchers, disguised under a grant awarded to the University of Southern California. This grant supported research related to brain sensors dealing with cognition, addiction, and mood, yet this subaward was conspicuously absent from Peking University’s profile on the USAspending.gov site.

An audit conducted by the Government Accountability Office (GAO) in April 2023 corroborated that U.S. funds often arrive at Chinese initiatives via subawards, but underscored that the full scope of these funds is largely obscured due to inadequate reporting and lack of transparency. Sen. Ernst did not hold back in her condemnation of the administration's actions, asserting that the hard-earned dollars of American taxpayers are being funneled to support a hostile regime, all the while evading accountability with buried line items and incomplete reporting of the expenditures.

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