# NSF Launches $1.5B X-Labs Funding Initiative

The U.S. National Science Foundation (NSF) has launched the NSF X-Labs initiative, committing up to **$1.5 billion over the next decade** to fund independent, milestone-driven interdisciplinary research teams focused on breakthrough platform technologies including AI-enabled scientific imaging, quantum sensing, and quantum computing. This program employs a novel Other Transaction Authority (OTA) contract model that provides significant operational independence to selected teams, with Phase 0 planning awards up to **$1.5 million** and Phase 1 execution awards up to **$50 million annually**. The solicitation deadline extends through May 14, 2028, offering a substantial opportunity for research organizations, universities, nonprofits, and companies to engage in cutting-edge technology development and accelerate the transition of early-stage innovations into commercially viable platforms.

- **Why this matters:** Procurement professionals should note the use of OTA contracts, which allow for flexible, milestone-based funding and autonomous team operations, differing from traditional grant or contract vehicles.
- The large funding scale and extended solicitation period provide multiple entry points for organizations to participate in advanced AI and quantum technology R&D.
- Companies and research institutions should prepare proposals aligned with NSF's focus on platform technologies and milestone-driven progress to maximize funding potential.
- This initiative signals increased federal emphasis on accelerating technology commercialization through innovative procurement mechanisms, impacting future federal R&D contracting strategies.

**Jurisdictions:** federal
**Industries:** Information Technology, Defense & Military
**Topics:** Artificial Intelligence, Cybersecurity
**Published:** May 19, 2026

### Government Entities
- National Science Foundation (NSF)
- White House Office of Science and Technology Policy (OSTP)
- Federal Risk and Authorization Management Program (FedRAMP)
- U.S. Department of Veterans Affairs (VA)
- House Committee on Veterans' Affairs

### Key Quotes
> With an initial investment of up to $1.5 billion in independent, milestone-driven research teams pursuing sector-defining platform capabilities, we're creating the conditions for transformative breakthroughs and accelerating America's leadership in the technologies that will define this century.
> — Brian Stone, Performing the Duties of the NSF Director

> The model for agencies doesn’t change at all, but the way that agencies do it needs to change.
> — Pete Waterman, FedRAMP Director

### Sources
- [NSF opens $1.5B X-Labs funding for AI and quantum teams | ETIH EdTech News — EdTech Innovation Hub](https://www.edtechinnovationhub.com/news/national-science-foundation-puts-15-billion-behind-x-labs-push-for-independent-research-teams) - EdTech Innovation Hub
- [NSF Issues Solicitation for $1.5B X-Labs Program](https://www.executivegov.com/articles/nsf-x-labs-launch-solicitation-quantum-ai) - ExecutiveGov
- [The Wrap: Interview With FedRAMP Chief; X-Labs Marks the Spot; Tech Bills Clear Committee](https://www.linkedin.com/pulse/wrap-interview-fedramp-chief-x-labs-marks-spot-tech-bills-clear-vjnvc) - LinkedIn