119-s418

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 418 Introduced in Senate

    (IS) ]

<DOC>

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).
 <all>