Defending Defense Research from Chinese Communist Party Espionage Act of 2025
This bill, the Defending Defense Research from Chinese Communist Party Espionage Act of 2025, aims to prevent foreign entities designated as a “covered nation” or a “foreign entity of concern” from entering into contracts with U.S. colleges and universities that conduct Department of Defense (DoD)–funded research. Starting in 2027, such institutions would be barred from contracting with those foreign entities unless a special waiver is granted. The bill creates a formal waiver process, requires translation of contract materials, and adds transparency through a public database and annual reporting. It also imposes a 10-year post-employment restriction for principal investigators on DoD-funded defense research involving critical or emerging technologies, with limited waivers for U.S. persons. Overall, the bill elevates screening, oversight, and post-employment restrictions to reduce potential foreign influence or espionage in defense research. The effect is to tighten which foreign actors can participate in DoD-funded university research, increase government review and transparency around any such partnerships, and constrain the career mobility of researchers involved in sensitive defense projects. It includes transitional provisions for existing contracts and adds administrative obligations for universities and DoD to monitor compliance and publish waiver data.
Key Points
- 1Prohibition on contracts: Beginning January 1, 2027, a covered institution of higher education may not contract with a covered nation or a foreign entity of concern unless a waiver is granted; funds to noncompliant institutions can be withheld.
- 2Waiver process: The Secretary of Defense can grant waivers, subject to specific criteria and oversight. Waivers are time-limited (typically 1 year) and require:
- 3- A complete, unredacted contract text and an English translation.
- 4- A certification that the contract benefits the institution’s mission, students, and U.S. security and vitality.
- 5- Consideration of factors such as U.S. and foreign economic conditions, reasons for designation, history of involvement, and potential access to sensitive information.
- 6Congressional oversight and transparency: The Secretary must notify Congress before waivers are issued, and DoD must publish waiver orders and waiver requests in a public, searchable database. An annual report tracks waiver trends and verification processes.
- 7Transitional provisions for pre-enactment contracts: For contracts with a prohibited foreign entity that were active before 2026, DoD can issue short-term waivers (ending no later than 2028 or contract termination) to ease transition.
- 8Designation during contract term: If a partner is later designated as a covered nation or foreign entity of concern, the institution must terminate the contract within 120 days.
- 9Compliance and translation requirements: Institutions must appoint a compliance officer and ensure translations of non-English contract materials are done by a non-affiliated translator.
- 10Post-employment restrictions (10-year rule): A principal investigator on a covered defense research project generally may not seek or accept employment or other activities with a foreign entity of concern for 10 years after their last day as PI, if the project involves a critical or emerging technology. Waivers are possible for U.S. persons with a stated justification and disclosure of relevant DoD funding.
- 11Definitions and scope: The bill defines “covered nation,” “foreign entity of concern,” “institution of higher education,” and “covered institution of higher education” to cover DoD-funded research conducted at colleges/universities and related entities, with emphasis on national security implications of technology access.