NIH Policy Update on Foreign Subawards
The National Institutes of Health (NIH) has released an update to its policy on foreign subawards. In summary, NIH will not issue awards to domestic or foreign entities (new, renewal or non-competing continuation), that include a subaward to a foreign entity effective May 1, 2025. Additionally, NIH will no longer accept prior approval requests to add a new foreign component or subaward to an ongoing project. In all cases, NIH will allow institutes, centers and offices to renegotiate awards, whether new, renewal or non-competing, to remove subawards to foreign entities and, where the work can be performed domestically, allow the funds to be rebudgeted for use by the prime recipient (domestic or foreign) or a domestic subrecipient. If a project is no longer viable without the foreign subaward, NIH will work with the recipient to negotiate a bilateral termination of the project, taking into consideration any need to support patient safety and/or animal welfare.
This policy update does not apply to funds provided to support foreign consultants, or purchasing unique equipment or supplies from foreign vendors.
Notices of Funding Opportunities (NOFOs) that state that foreign components are allowed are superseded by this recent notice. NIH will revise NOFOs to reflect the new award structure.
This policy will remain in effect until the NIH implements a new award structure for foreign entities. Under the new structure, foreign recipients of NIH funding will receive independent awards as prime awardees. The NIH anticipates implementing this new structure by September 30, 2025, ahead of Fiscal Year 2026.
We’ve summarized the impact to BU researchers below. This is subject to change as NIH updates its policy and guidance.
New awards issued May 1, 2025 or after
As stated in the notice, NIH will not issue awards that include a subaward to a foreign entity. Investigators should be prepared to work with their NIH Program Officer and Grants Management Specialist to negotiate the removal of the foreign subaward from the project. This includes competitive renewals.
Annual progress reports due and Non-competing renewals issued May 1, 2025 or after
Investigators should submit progress reports as usual, including as applicable, any activities completed by the foreign entity. As stated in the notice, NIH will not issue awards that include a subaward to a foreign entity. Investigators should be prepared to work with their NIH Program Officer and Grants Management Specialist to negotiate the removal of the foreign subaward from the project. The outgoing subaward team will not be issuing amendments beyond the previously funded budget year to foreign subawards.
Existing awards issued before May 1, 2025
The policy change is effective for awards issued on or after May 1, 2025 so there is no impact to the budget year for awards issued before this date. Subawards issued under existing awards will remain in effect only through the current budget year.
Planned proposals due May 1, 2025 or after
As stated in the notice, NIH will not issue awards that include a subaward to a foreign entity. Including a foreign subaward in a grant proposal may cause the proposal to be rejected without further consideration as to its merits. At present, no procedure has been established for seeking a waiver to the new rule. NIH intends to implement a new award mechanism for foreign collaborations by September 30, 2025. We will share guidance as soon as we receive it.
Please reach out to ospera@bu.edu with any questions.