In an attempt to internationalize higher education to keep up with global standards, in 2014, Japanese policymakers launched their most significant program yet, the “Top Global University Project” (TGUP). In the following, the number of Japanese students spending part of their studies abroad significantly increased. However, funding was provided to very few selected universities (37 of 781 universities in 2014) implying that opportunities to study abroad differ notably across TGUP and non-TGUP funded universities and hence major differences in participation rates across these universities are likely. Furthermore, past research showed that students from families with advantaged socioeconomic status (SES) are generally more likely to study abroad than lower-SES students in numerous countries including Japan. It remains unclear whether the implementation of state programs such as TGUP may reduce social inequalities or exacerbate them. We examine both issues using data from three iterations of the largely unexploited Japan Campus Life Data (N = 41 654 students nested in N = 51 universities). Results from our multi-level trend analysis indicate that (1) TGUP funded universities show higher study abroad participation among its students, but no steeper growth rates than universities without TGUP funding; and (2) the SES-gap in the likelihood of studying abroad of students at TGUP universities significantly increased from 2013 to 2017. Our results indicate that the TGUP falls short of expectations in terms of growth in study abroad participation, while at the same time horizontal inequalities in study abroad seem to have widened at TGUP-funded universities.