[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 418 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 418
To prohibit contracts between certain foreign entities and institutions
of higher education conducting Department of Defense-funded research
and to impose post-employment restrictions for participants in certain
research funded by the Department, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 5, 2025
Mr. Banks introduced the following bill; which was read twice and
referred to the Committee on Armed Services
_______________________________________________________________________
A BILL
To prohibit contracts between certain foreign entities and institutions
of higher education conducting Department of Defense-funded research
and to impose post-employment restrictions for participants in certain
research funded by the Department, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Defending Defense Research from
Chinese Communist Party Espionage Act of 2025''.
SEC. 2. PROHIBITION ON CONTRACTS BETWEEN CERTAIN FOREIGN ENTITIES AND
INSTITUTIONS OF HIGHER EDUCATION CONDUCTING DEPARTMENT OF
DEFENSE-FUNDED RESEARCH.
(a) In General.--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--
(1) fails to comply with the prohibition set forth in
subsection (b); and
(2) has not received a waiver under subsection (c).
(b) Prohibition.--Beginning on January 1, 2027, a covered
institution of higher education may not enter into a contract with a
covered nation or a foreign entity of concern.
(c) Waivers.--
(1) Authority.--Subject to the provisions of this
subsection and subsection (d), the Secretary of Defense may,
pursuant to a request submitted under paragraph (2) of this
subsection, issue a waiver of the prohibition set forth in
subsection (b).
(2) Submission.--
(A) First waiver requests.--
(i) In general.--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 set forth in
subsection (b) with respect to such contract.
(ii) Contents of waiver request.--A waiver
request submitted by a covered institution of
higher education under clause (i) shall
include--
(I) 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
(II) a statement that--
(aa) is signed by the
President or compliance officer
of the institution designated
in accordance with subsection
(g); and
(bb) 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.
(B) Renewal waiver requests.--
(i) In general.--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).
(ii) Termination.--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.
(3) Waiver issuance.--The Secretary of Defense--
(A) not later than 60 days before a covered
institution of higher education enters into a contract
pursuant to a waiver request under paragraph (2)(A), or
before a contract described in paragraph (2)(B)(i) is
renewed pursuant to a renewal request under such
paragraph, shall notify the institution--
(i) if the waiver or renewal will be issued
by the Secretary; and
(ii) in a case in which the waiver or
renewal will be issued, the date on which the
1-year waiver period starts;
(B) may only issue a waiver under this subsection
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 will both--
(i) benefit of the institution's mission
and students; and
(ii) promote the security, stability, and
economic vitality of the United States; and
(C) shall, when making the determination described
in subparagraph (B)(ii), base such determination on the
following factors:
(i) The economic situation of the United
States.
(ii) The economic situation of the foreign
entity of concern or covered nation with which
a contract is sought.
(iii) The reasons for which the foreign
entity of concern or covered nation has been so
designated, and why those reasons do not apply
to the contract for which waiver is being
sought.
(iv) The foreign entity of concern or
covered nation's interest in being involved
with covered institutions of higher education.
(v) The foreign entity of concern or
covered nation's history of involvement with
covered institutions of higher education.
(vi) The degree to which such a contract
could provide access to information or
technology which could materially benefit the
national security of a covered nation or harm
the national security of the United States.
(4) Notification to congress.--Not later than 2 weeks prior
to issuing a waiver under this subsection, the Secretary of
Defense shall submit to the Committee on Armed Services of the
Senate and the Committee on Armed Services of the House of
Representatives written notice of the intent of the Secretary
to issue such waiver together with a justification for such
waiver.
(5) Application of waivers.--A waiver issued under this
subsection to a covered institution of higher education with
respect to a contract shall only--
(A) waive the prohibition under subsection (b) for
a 1-year period; and
(B) apply to the terms and conditions of the
proposed contract submitted as part of the request for
such waiver.
(d) Contracts Prior to Date of Enactment.--
(1) In general.--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--
(A) the institution shall, not later than 120 days
before such date, submit to the Secretary a waiver
request in accordance with subsection (c)(2)(A)(ii);
and
(B) the Secretary shall, upon receipt of the
request submitted under subparagraph (A), immediately
issue a waiver under subsection (c) to the institution
for a period beginning on the date on which the waiver
is issued and ending on the sooner of--
(i) January 1, 2028; or
(ii) the date on which the contract
terminates.
(2) Renewal.--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)(2)(B).
(e) Designation During Contract Term.--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 120 days after the Secretary
notifies the institution of such designation.
(f) Translation Requirement.--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.
(g) Compliance Officer.--Each covered institution of higher
education applying for a waiver under subsection (c), shall identify a
compliance officer, who shall--
(1) be a current employee or legally authorized agent of
such institution; and
(2) be responsible, on behalf of such institution, for
personally certifying--
(A) compliance with the prohibition under this
section; and
(B) the truth and accuracy of any information
contained in such a waiver request.
(h) Public Database.--Not later than 90 days after issuing a waiver
under subsection (c), 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.
(i) Annual Reports.--Not later than June 1, 2027, and on an annual
basis thereafter, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report that includes a
description of--
(1) the terms and contents of any waivers issued under this
section in the period covered by the report;
(2) any trends in--
(A) the number of waivers issued under this section
over time; and
(B) the types of contracts to which such waivers
pertain; and
(3) the processes used by the Secretary to verify that
covered institutions of higher education are in compliance with
the requirements of this section.
(j) Definitions.--In this section:
(1) The term ``contract'' means--
(A) 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
(B) 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.
(2) The term ``covered institution of higher education''
means an institution of higher education that conducts research
funded by the Department of Defense.
(3) 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).
(4) The term ``covered nation'' has the meaning given that
term in section 4872(d) of title 10, United States Code.
(5) 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).
SEC. 3. POST-EMPLOYMENT RESTRICTIONS FOR PARTICIPANTS IN CERTAIN
RESEARCH FUNDED BY THE DEPARTMENT OF DEFENSE.
(a) In General.--Except as provided under subsection (c), as a
condition of becoming or remaining a principal investigator of a
covered defense research project, a person shall agree that during the
10-year period beginning on the last day the person is a principal
investigator of such research, such person may not seek or accept
employment, or conduct any activity, for which a foreign entity of
concern provides financial compensation or in-kind benefits.
(b) Critical or Emerging Technology.--For purposes of subsection
(a), a critical or emerging technology is a technology that the
Secretary of Defense determines to be critical or emerging. Not later
than 270 days after the date of the enactment of this Act, and annually
thereafter, the Secretary shall determine which technologies are
critical or emerging from among the technologies for which the
Department of Defense funds research, and shall make the results of
such determination publicly available.
(c) Waiver Authority.--The Secretary may waive the restriction
under subsection (a) with respect to a United States person if, not
later than 30 days before issuing the waiver, the Secretary submits to
the congressional defense committees a notice of the waiver that
includes--
(1) an unclassified justification for the waiver; and
(2) a description of any Department of Defense funds
provided to the person for which the waiver is issued or to the
research in which the person participated.
(d) Applicability.--This section shall apply with respect to
research that begins on or after the date that is one year after the
date of the enactment of this Act.
(e) Definitions.--
(1) Foreign entity of concern.--In this section, 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).
(2) Covered defense research project.--The term ``covered
defense research project'' means a research project that is--
(A) operated by an institution of higher education
or a subsidiary of an institution of higher education;
(B) funded, in whole or in part, by the Department
of Defense; and
(C) which involves a critical or emerging
technology, as defined in subsection (b) of this
section.
(3) Institution of higher education.--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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