This Notice was RESCINDED on December 11, 2020, please see NOT-OD-21-041 that replaces it.


RESCINDED - Prohibition on Expending NIH Grant Funds for Covered Telecommunications Equipment or Services
Notice Number:

Key Dates

Release Date:

November 23, 2020 (Rescinded December 11, 2020)

Related Announcements


Issued by

Office of The Director, National Institutes of Health (OD)


Effective August 13, 2020, the Office of Management and Budget revised 2 Code of Federal Regulations 200 to align with Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232). This new section, 2 CFR 200.216, Prohibition on certain telecommunication and video surveillance services or equipment, prohibits Federal award recipients from using government funds to enter contracts (or extend or renew contracts) with entities that use covered telecommunications equipment or services.

The following term of award is therefore applicable to all NIH grants and cooperative agreements issued on or after August 13, 2020. As such, this notice modifies the terms and conditions of award for grants issued on or after that date. The NIH Grants Policy Statement will be updated at the time of its next publication to incorporate this term and condition into Section 4 Public Policy Requirements, Objectives and Other Appropriation Mandates.

In accordance with the newly revised 2 CFR 200.216 and 200.471, a recipient and subrecipient are prohibited from expending grant funds to:

  1. Procure or obtain any covered telecommunications equipment, system, or services.
  2. Enter contracts (or extend or renew contracts) with entities that use covered telecommunications equipment or services.

Note, this prohibition shall apply even if the contract is not intended to procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services.

For the purposes of this requirement, both at the time of application and as a term and condition of award:


  • Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities);
  • For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);
  • Telecommunications or video surveillance services provided by such entities or using such equipment; or
  • Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.

2. COVERED FOREIGN COUNTRY means the People’s Republic of China.

Under the National Public Policy Requirements (See NIH GPS Section 4) NIH requires applicants and recipients to certify compliance, by signing the face page of the application, the Authorized Organization Official is the responsible party for doing so. Recipients further certify compliance at the time of drawdown of funds from the Payment Management System. Recipients must maintain documentation on file to demonstrate that they have not procured or entered into contracts prohibited by this part and maintain appropriate internal controls to ensure ongoing compliance. Should NIH determine non-compliance, NIH will take appropriate enforcement actions, which may include termination of award.


Please direct all inquiries to:

Please direct all general policy related questions to:

OPERA Division of Grants Policy

Please direct all compliance inquiries to:

OPERA Division of Grants Compliance and Oversight

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