SEC. 2. PROHIBITION ON AVAILABILITY OF FUNDS FOR 
FUNDAMENTAL RESEARCH COLLABORATION 
WITH COVERED ENTITIES. 
(a) PROHIBITION.—Except as provided in subsection 
(b), no Federal funds may be obligated or expended to 
award a grant or contract to an institution of higher edu-
cation for the specific purposes of conducting fundamental 
research in collaboration with a covered entity. 
(b) WAIVER.— 
(1) IN GENERAL.—The head of a Federal agen-
cy may waive the prohibition described in subsection 
(a) on a case-by-case basis, with respect to an indi-
vidual grant or contract with an eligible institution 
of higher education described in paragraph (2) if the 
agency head determines that such a waiver is in the 
national security interests of the United States. 
(2) ELIGIBILITY.— 
(A) IN GENERAL.—An institution of higher 
education is eligible for a waiver under this sub-
section if— 
(i) the international enrollment rate at 
the institution is less than 15 percent; and 
(ii) the enrollment at the institution of 
students from foreign countries of concern 
is less than 5 percent of the international 
student body at the institution. 
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(B) PERSECUTED GROUPS NOT TO BE IN-
CLUDED IN CAP.— 
(i) IN
GENERAL.—For purposes of 
calculating the enrollment at an institution 
of higher education of students under 
clauses (i) and (ii) of subparagraph (A), a 
student from a foreign country of concern 
who is member of a group on the list de-
scribed in clause (ii) for such foreign coun-
try of concern shall not count toward the 
caps provided in such subparagraph. 
(ii) LIST.—The Secretary of State 
shall establish a list for each foreign coun-
try of concern of groups who are the target 
of persecution in the foreign country of 
concern. 
(3) CONGRESSIONAL NOTICE.—Not later than 
30 days after the date on which an award is made 
by a Federal agency involving an institution of high-
er education with respect to which a waiver is made 
under paragraph (1), the head of the agency shall 
submit to Congress a notice of such waiver. 
(c) REPORT.— 
(1) IN GENERAL.—On an annual basis, each 
head of a Federal agency shall submit to Congress 
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a report on the compliance of the agency and insti-
tutions of higher education with the requirements of 
this section. 
(2) CONTENTS.—Each report annex submitted 
pursuant to paragraph (1) shall include— 
(A) a list of institutions of higher edu-
cation that applied for funding that also applied 
for a waiver under subsection (b) during the pe-
riod covered by the report, and for each of 
these institutions, statistics on domestic, inter-
national, and foreign country of concern enroll-
ment in each of the institution’s undergraduate 
and graduate schools; and 
(B) for each waiver made under subsection 
(b) during the period covered by the report— 
(i) a justification for the waiver; and 
(ii) a detailed description of the type 
and extent of any collaboration between an 
institution of higher education and a cov-
ered entity allowed pursuant to the waiver, 
including identification of the institution of 
higher education and the covered entity in-
volved, the type of technology involved, the 
duration of the collaboration, and terms 
and conditions on intellectual property as-
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signment, as applicable, under the collabo-
ration agreement. 
(d) DEFINITIONS.—In this Act: 
(1) COLLABORATION.—The term ‘‘collabora-
tion’’ means coordinated activity between an institu-
tion of higher education and a covered entity, and 
includes— 
(A) sharing of research facilities, re-
sources, or data; 
(B) sharing of technical know-how; 
(C) any financial or in-kind contribution 
intended to produce a research product; 
(D) sponsorship or facilitation of research 
fellowships, visas, or residence permits; 
(E) joint ventures, partnerships, or other 
formalized agreements for the purpose of con-
ducting research or sharing resources, data, or 
technology; 
(F) inclusion of researchers as consultants, 
advisors, or members of advisory or review 
boards; and 
(G) such other activities as may be deter-
mined by the Secretary of Defense. 
(2) COVERED ENTITY.—The term ‘‘covered en-
tity’’— 
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(A) means— 
(i) any academic institution that is in-
cluded in the most recently updated list de-
veloped pursuant to section 1286(c)(9) of 
the John S. McCain National Defense Au-
thorization Act for Fiscal Year 2019 (Pub-
lic Law 115–232; 10 U.S.C. 4001 note); 
(ii) any entity included in the list of 
Chinese military companies operating in 
the United States most recently submitted 
under section 1260H(b)(1) of the William 
M. (Mac) Thornberry National Defense 
Authorization Act for Fiscal Year 2021 
(Public Law 116–283;10 U.S.C. 113 note); 
or 
(iii) any college or university in the 
People’s Republic of China that— 
(I) is known as the ‘‘Seven Sons 
of National Defense’’; 
(II) is designated under the 
‘‘Double 
First-Class 
Construction’’ 
plan; 
(III) is designated or overseen by 
the State Administration for Science, 
Technology, and Industry for National 
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Defense to host ‘‘joint construction’’ 
programs; or 
(IV) otherwise conducts research 
or other activities in support of imple-
mentation 
of 
military-civil 
fusion 
strategy or national defense capabili-
ties; and 
(B) includes— 
(i) any individual employed by, or re-
ceiving funding from, an entity or aca-
demic institution described in subpara-
graph (A); 
(ii) any foreign person who holds a 
degree from an academic institution de-
scribed in subparagraph (A); and 
(iii) any foreign person who receives 
funding from— 
(I) an entity described in sub-
paragraph (A); 
(II) a foreign talent program in-
cluded in the most recently updated 
list developed pursuant to section 
1286(c)(10) of the John S. McCain 
National Defense Authorization Act 
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for Fiscal Year 2019 (Public Law 
115–232; 10 U.S.C. 4001 note); or 
(III) a foreign country of concern 
or an entity based in a foreign coun-
try of concern, whether or not directly 
sponsored by the foreign country of 
concern. 
(3) FOREIGN
COUNTRY
OF
CONCERN.—The 
term ‘‘foreign country of concern’’ has the meaning 
given the term in section 10612(a) of the Research 
and Development, Competition, and Innovation Act 
(Public Law 117–167; 136 Stat. 1635; 42 U.S.C. 
19221). 
(4) 
FUNDAMENTAL
RESEARCH.—The 
term 
‘‘fundamental research’’ has the meaning given that 
term in National Security Decision Directive–189 
(NSSD–189), National Policy on the Transfer of 
Scientific, Technical and Engineering Information, 
dated September 21, 1985, or any successor docu-
ment. 
(5) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given the term in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002) and in-
cludes— 
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(A) any department, program, project, fac-
ulty, researcher, or other individual, entity, or 
activity of such institution; and 
(B) any branch of such institution within 
or outside the United States. 
Æ 
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