Sec. 225. Prohibition on contracts between certain foreign entities and institutions of higher education conducting Department of Defense-funded research
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None of the funds authorized to be appropriated or otherwise made available for any fiscal year for the Department of Defense may be provided to a covered institution of higher education that fails to comply with the prohibition under subsection (b). Beginning on January 1, 2026, a covered institution of higher education may not enter into a contract with a covered nation or a foreign entity of concern. A covered institution of higher education that desires to enter into a contract with a foreign entity of concern or a covered nation may submit to the Secretary of Defense, not later than 120 days before the institution enters into such a contract, a request to waive the prohibition under subsection
(b)with respect to such contract. A waiver request submitted by a covered institution of higher education under clause
(i)shall include— the complete and unredacted text of the proposed contract for which the waiver is being requested, and if such original contract is not in English, a translated copy of the text into English (in a manner that complies with subsection (f)); and a statement that— is signed by the President or compliance officer of the institution designated in accordance with subsection (g); and includes information that demonstrates that such contract is for the benefit of the institution’s mission and students and will promote the security, stability, and economic vitality of the United States. A covered institution of higher education that has entered into a contract pursuant to a waiver issued under this section, the term of which is longer than the 1-year waiver period and the terms and conditions of which remain the same as the proposed contract submitted as part of the request for such waiver, may submit, not later than 120 days before the expiration of such waiver period, a request for a renewal of such waiver for an additional 1-year period (which shall include any information requested by the Secretary). If a covered institution of higher education fails to submit a request under clause
(i)or is not granted a renewal under such clause, such institution shall terminate such contract on the last day of the original 1-year waiver period. The Secretary of Defense— not later than 60 days before a covered institution of higher education enters into a contract pursuant to a waiver request under paragraph (1)(A), or before a contract described in paragraph (1)(B)(i) is renewed pursuant to a renewal request under such paragraph, shall notify the institution— if the waiver or renewal will be issued by the Secretary; and in a case in which the waiver or renewal will be issued, the date on which the 1-year waiver period starts; and may only issue a waiver under this section to an institution if the Secretary of Defense determines, in consultation with the Secretary of Education, that the contract for which the waiver is being requested is for the benefit of the institution’s mission and students and will promote the security, stability, and economic vitality of the United States. Not later than 2 weeks prior to issuing a waiver under paragraph (2), the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives written notice of the intent of the Secretary to issue such waiver together with a justification for such waiver. A waiver issued under this section to a covered institution of higher education with respect to a contract shall only— waive the prohibition under subsection
(b)for a 1-year period; and apply to the terms and conditions of the proposed contract submitted as part of the request for such waiver. In the case of a covered institution of higher education that entered into contract with a covered nation or foreign entity of concern prior to January 1, 2026, and which contract remains in effect on such date— the institution shall, not later than 120 days before such date, submit to the Secretary a waiver request in accordance with subsection (c)(1)(A)(ii); and the Secretary shall, upon receipt of the request submitted under subparagraph (A), immediately issue a waiver to the institution for a period beginning on the date on which the waiver is issued and ending on the sooner of— January 1, 2027; or the date on which the contract terminates. A covered institution of higher education that has entered into a contract described in paragraph (1), the term of which is longer than the waiver period described in subparagraph
(B)of such paragraph and the terms and conditions of which remain the same as the contract submitted as part of the request required under subparagraph
(A)of such paragraph, may submit a request for renewal of the waiver issued under such paragraph in accordance with subsection (c)(1)(B). In the case of a covered institution of higher education that enters into a contract with a foreign source that is not a covered nation or a foreign entity of concern but which, during the term of such contract, is designated as a covered nation or foreign entity of concern, such institution shall terminate such contract not later than 60 days after the Secretary notifies the institution of such designation. Any information required to be disclosed under this section with respect to a contract that is not in English shall be translated, for purposes of such disclosure, by a person that is not an affiliated entity or agent of the covered nation or foreign entity of concern involved with such contract. Each covered institution of higher education applying for a waiver under subsection
(c)or (d), shall identify a compliance officer, who shall— be a current employee or legally authorized agent of such institution; and be responsible, on behalf of such institution, for personally certifying— compliance with the prohibition under this section; and the truth and accuracy of any information contained in such a waiver request. Not later than 90 days after issuing a waiver under subsection
(c)or (d), the Secretary of Defense shall publish a copy of the order granting the waiver and the contents of the waiver request on a publicly available website of the Department of Defense. Such information shall be made available on such website in the form of a searchable database that includes links to the text of all contracts to which the waiver pertains. Not later than June 1, 2026, and on an annual basis thereafter, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report that includes a description of— the terms and contents of any waivers issued under this section in the period covered by the report; any trends in— the number of waivers issued under this section over time; and the types of contracts to which such waivers pertain; and the processes used by the Secretary to verify that covered institutions of higher education are in compliance with the requirements of this section. In this section: The term contract means— any agreement or memorandum of understanding for the acquisition, by purchase, lease, or barter, of property or services by or from a covered nation or foreign entity of concern; or any affiliation, agreement, or similar transaction with a covered nation or foreign entity of concern that involves the use or exchange of the name, likeness, time, services, or resources of a covered institution of higher education. The term covered institution of higher education means an institution of higher education that conducts research funded by the Department of Defense. The term foreign entity of concern has the meaning given that term in section 10612(a) of the Research and Development, Competition, and Innovation Act ( 42 U.S.C. 19221(a) ) and includes a foreign entity that is identified on the list published under section 1286(c)(9)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 ( Public Law 115–232 ; 10 U.S.C. 4001 note). The term covered nation has the meaning given that term in section 4872(d) of title 10, United States Code. The term institution of higher education has the meaning given that term in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 ).
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Sec. 225
Prohibition on contracts between certain foreign entities and institutions of higher education conducting Department of Defense-funded research
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