I can’t tell you anything specific from personal knowledge about 50 years ago, but I did study in the Soviet Union in the fall of 1989, and again in Russia in the summer of 1995. On one hand, many students in my various Russia-related educational programs were funded by the Federal government as part of various programs aimed at developing competency among Americans in languages considered to be of strategic importance to the United States. (One such program is the FLAS (Foreign Languages and Area Studies) program,which still exists, and which I applied for during my M.A. program in Russian & East European Studies, but didn’t get - at my grad school, they generally went to Ph.D. students in various disciplines.)
I did get a Dept. of Education grant intended for the same purpose, which covered basically all of my 1995 program, which was a specialized Russian-language program for students of natural and social sciences. Also my grad school had a domestic summer intensive language program that taught Russian and a number of other languages of the FSU region that are considered strategically important, and many students in this program are fully funded by the State Department under another fellowship program. And there were always a couple of students in my program, and in a related program at my grad school that focused on other portions of the former East Bloc such as Central Asia, who were active-duty military personnel and were having their way through grad school fully funded by Uncle Sam. There was also a grant available from the NSA, but those of us who intended to go on in academia were cautioned that NSA funding was liable to make later professional contacts in the FSU suspicious of us (basically, even though the funding came with no strings attached, people in-region might think we were spies). So I never applied for that grant.
So on one hand, the US Government considers it important to fund students of languages considered strategically important to the U.S. (of which Arabic is certainly also one, and if you haven’t read all the news stories in recent years of the desperation of various USG agencies in trying to find qualified Arabic translators and interpreters, you really haven’t been paying attention).
But on the other, let me tell you how much fun it was to go through a Federal security clearance for a relatively low-level job with the Dept. of Justice in 1991, not long after my first program; my clearance took 5x as long as it was supposed to, they interviewed practically everyone in any position of authority with my USSR study program (I requested a copy of the investigation report later under the Freedom of Information Act, and it was hilarious!), and although I was totally upfront about every personal relationship I had with a Soviet citizen, they really didn’t know what to do with the info - they ended up having me sign a sworn statement that if any of my Soviet friends asked me to do anything that would violate US national security, I would immediately inform the State Department. And that was for a Spanish interpreting job!
So yeah, not exactly McCarthyism, but still kind of ridiculous. And meanwhile, just look how long it took to catch a guy like Aldrich Ames.