Prohibition on Collaborations with Restricted Entities

Dear Colleague:

The U.S. National Science Foundation (NSF) is notifying the research community of a forthcoming policy prohibiting NSF funds from being expended on collaboration with entities on U.S. restricted parties lists, provided in Appendix A.

The U.S. government has determined that the behavior of these entities warrants restrictions based on national security and other foreign policy interests. Therefore, NSF has determined research security risk mitigation for NSF-funded projects involving these restricted entities is not sufficient. Accordingly, NSF plans to implement a new research security policy prohibiting collaboration on NSF-funded projects with these restricted entities, which can be found in Appendix A. As such, senior/key personnel will be prohibited from collaborating with these restricted entities on NSF-funded projects. Additionally, senior/key personnel will be prohibited from holding an appointment or position with, or receiving research support from, these restricted entities for the duration of the NSF award. NSF plans to revise its current guidance to include the following:

• NSF appropriated funds shall not be used for grants, contracts, other transactions or other assistance to an organization if the purpose is to conduct research in collaboration with restricted entities. This funding prohibition also extends to the employees of such restricted entities.
• Senior/key personnel are prohibited from holding an appointment or position with, or receiving research support from, a restricted entity. Further, senior/key personnel are prohibited from collaborating with a restricted entity, or employee thereof, on research funded by their NSF award.

To comply with this prohibition once it is effective, organization Authorized Organizational Representatives (AORs) and senior/key personnel will be required to certify to this effect at the time of proposal submission. Further, organizations will be responsible for ensuring that senior/key personnel are aware of and comply with this prohibition and for identifying and addressing prohibited activities before NSF funds are expended.

By aligning this prohibition with the Department of War's approach to collaborations with entities on U.S. restricted party lists, NSF seeks to safeguard NSF-funded research while promoting consistency and reducing administrative burden.

NSF intends to implement this prohibition in Fiscal Year 2027 along with the effective date of the Draft Guidance on Financial Assistance, formerly known as the Proposal & Award Policies & Procedures Guide, or the effective date of Acquisition Policy issued by the Senior Procurement Executive. This DCL provides advance notice of the forthcoming policy to allow institutions and researchers time to prepare. Please send any questions to researchsecurity@nsf.gov.

NSF appreciates the continued partnership of the research community in safeguarding and continuing to advance critical research in the interest of the American people.

Appendix A: U.S. Proscribed Party Lists

• U.S. Department of War
  • Sec. 1260H of the National Defense Authorization Act (NDAA) for FY2021
  • Sec. 1286 of the NDAA for FY2019, as amended
• U.S. Department of Commerce, Bureau of Industry and Security: 
  • Entity List
  • Military End-User Entities
  • Denied Persons
• U.S. Department of Treasury, Office of Foreign Assets Control: 
  • Annex of Executive Order 14032
  • Non-SDN Chinese Military-Industrial Complex Companies
• U.S. Department of State: 
  • Debarred Parties
  • Nonproliferation Sanctions
• U.S. Federal Communications Commission:
  • Equipment and Services Covered by Section 2 of The Secure Networks Act
• U.S. Department of Homeland Security:
  • UFLPA Entity List
• U.S. Customs and Border Protection:
  • Withhold Release Orders & Findings list