An inquiry led by Senator Joni Ernst has uncovered that $18 million in U.S. taxpayer money was allocated to initiatives in Communist China, with significant funds misreported or concealed from federal databases. The latest findings highlight potential misuse of resources by government agencies, inviting backlash from lawmakers.
Senator Exposes $18 Million in U.S. Taxpayer Funds Redirected to China

Senator Exposes $18 Million in U.S. Taxpayer Funds Redirected to China
A new investigation reveals troubling details about taxpayer dollars linked to China, raising alarm among legislators and watchdog groups.
A new, alarming investigation spearheaded by Senator Joni Ernst (R-IA) has exposed substantial allocations of U.S. taxpayer funds—amounting to $18 million—redirected toward initiatives in Communist China. This shocking revelation has incited outrage not only among lawmakers but also from various watchdog organizations that closely monitor government spending.
Reports indicate that at least $4 million of these funds were misreported or entirely absent in the records maintained on USAspending.gov, the official platform intended for public tracking of federal grants. The significant funding was primarily channeled through the State Department and the Department of Health and Human Services (HHS), aimed at supporting a variety of projects based in China, such as:
- Diversity, Equity, Inclusion, and Accessibility (DEI) training at U.S. consulates
- Pro-LGBT initiatives within the country
- Public art displays and bicycle parking facilities
- Climate change programs
- Research on rats
Among these expenditures, $4.8 million was specifically allocated to Peking University in Beijing for a “China Health and Retirement Longitudinal Study.” However, Ernst’s investigation uncovered an additional $1.08 million sent to Peking researchers that was disguised as a sub-award under a previous grant to the University of Southern California. This particular grant was intended for research in cognitive functions, addiction, and mood via brain sensors but had failed to list the sub-award on Peking University’s profile on USAspending.gov.
An audit conducted by the Government Accountability Office (GAO) in April 2023 confirmed that U.S. funds frequently reach Chinese initiatives through subawards. However, it emphasized the absence of full transparency and adequate data reporting in these transactions, which makes it difficult to assess the overall scale of the issue.
Senator Ernst has strongly criticized the Biden administration for what she describes as the reckless allocation of American taxpayer money being used to support a foreign regime that poses a threat to U.S. interests. She points to the deliberate obfuscation through buried line items and incomplete documentation as further evidence of accountability avoidance by the administration.