NSF Dear Colleague Letter: Upcoming Policy on Collaborations with Restricted Entities

On July 8, 2026, the National Science Foundation (NSF) issued a Dear Colleague Letter (DCL) announcing a forthcoming policy that will bar NSF funds from supporting collaborations with entities on U.S. restricted parties lists. Senior/key personnel will be prohibited from collaborating with restricted entities on NSF-funded projects and will also be prohibited from holding an appointment or position with, or receiving research support from, listed entities for the duration of the NSF award. Per the DCL: "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." In Appendix A, NSF lists 12 restricted party lists, an increase from the current four lists and in near alignment with the Department of War (DoW). To comply, Authorized Organizational Representatives and senior/key personnel will need to certify to this effect at proposal submission, and organizations will be responsible for ensuring awareness of and compliance with the prohibition. NSF notes that this change aligns with the DoW's approach to restricted-party collaborations, with the aim of safeguarding NSF-funded research while promoting consistency and reducing administrative burden. NSF intends to implement the prohibition in Fiscal Year 2027. Per the DCL, questions can be directed to researchsecurity@nsf.gov.