OMB Unveils Proposed Changes to Federal Grant Rules Targeting Publication Expenses

The Office of Management and Budget has released a detailed proposal that would reshape how universities and research institutions handle costs associated with sharing federally funded findings. Released on May 29, 2026, the draft revisions to the government-wide rules for federal financial assistance introduce significant restrictions on what counts as an allowable expense under grants and cooperative agreements.

At the center of the discussion sits a shift in treatment for expenses tied to peer-reviewed journal articles, open-access fees, and related dissemination activities. Institutions across the United States that rely on support from agencies such as the National Science Foundation and the National Institutes of Health now face questions about how they will sustain their publishing pipelines if the changes take hold.

Context Behind the Uniform Grants Regulation Update

The Uniform Guidance, long known as 2 CFR Part 200, has served as the primary framework governing administrative requirements, cost principles, and audit expectations for federal awards since its original issuance more than a decade ago. Successive updates in 2020 and 2024 refined language and incorporated new policy priorities, yet the current proposal marks a more expansive overhaul.

OMB frames the effort as an attempt to strengthen transparency, accountability, and consistency while clarifying that the regulatory text carries the force of regulation rather than mere guidance. The document spans hundreds of pages and invites public comment through July 13, 2026, with an eye toward a final rule effective for awards beginning October 1, 2026.

Specific Provisions on Publication and Printing Costs

Under the proposed language in § 200.461, publication costs—including page charges, article processing charges, and open-access fees—would generally become unallowable. The only exceptions would arise when a statute expressly requires such spending or when a federal agency grants case-by-case prior approval.

OMB explains that these expenses are not viewed as core to most award objectives and often advance institutional or professional goals instead. A parallel change in § 200.454 would render subscriptions to academic and technical periodicals unallowable without prior written agency consent.

These adjustments would apply to new awards issued on or after the proposed effective date, prompting universities to reassess budgeting practices for research outputs that have long been treated as standard grant expenses.

Rationale Offered by Federal Officials

Agency drafters emphasize that many dissemination activities serve broader reputational or disciplinary interests rather than the narrow programmatic aims of individual grants. By requiring explicit statutory mandates or individualized approvals, the proposal aims to ensure taxpayer resources remain focused on direct research activities.

Officials also note that general federal expectations for public access to results should not automatically justify charging publication fees to awards. This stance appears intended to curb what some view as routine but discretionary spending across the research enterprise.

Consequences for American Universities and Research Teams

Research-intensive institutions would likely encounter immediate pressure on budgets already strained by rising operational costs. Faculty members accustomed to covering open-access charges through grant funds might need to seek institutional support, personal resources, or alternative publishing venues.

Early-career researchers and postdoctoral scholars could face heightened barriers when seeking to place findings in high-visibility journals. Departments that have built publication expectations into tenure and promotion criteria may need to revisit those standards in light of new financial realities.

Library systems that have negotiated big deals or supported transformative agreements could see shifts in how subscription and open-access models are funded, potentially accelerating conversations about sustainable scholarly communication strategies.

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Intersection with Open-Access Mandates and Scholarly Publishing

The proposal arrives amid ongoing federal efforts to expand public access to taxpayer-supported research. Earlier directives have encouraged immediate open access, yet the new cost restrictions create tension with those goals for many award recipients.

Publishers and societies that rely heavily on article processing charges from federally funded authors would need to monitor uptake and explore new revenue or waiver structures. University presses and society journals may accelerate experiments with diamond open-access models or institutional subsidies to maintain output levels.

Perspectives from Higher-Education Associations and Institutions

Organizations representing research universities have signaled strong interest in the comment period, highlighting potential effects on compliance infrastructure, indirect-cost recovery, and the overall research ecosystem. Groups focused on financial administration have noted the need for clear implementation guidance should the rules advance.

Individual campuses are beginning internal reviews to model scenarios under different approval pathways and to identify which publication activities might qualify for statutory exceptions. Some administrators anticipate increased administrative burden as project teams seek case-by-case determinations.

Additional Elements of the Broader Proposal

Beyond publication costs, the draft includes provisions that would expand discretionary termination authority, introduce new foreign-collaboration screening requirements, and codify certain restrictions on diversity-related activities. Preference in merit review for institutions with lower indirect-cost rates also appears in the text.

These elements collectively signal a more prescriptive approach to federal assistance oversight, with implications extending well beyond the research-publication sphere.

Strategies Institutions May Consider

Universities are already exploring ways to maintain research dissemination capacity. Options under discussion include reallocating internal funds, negotiating institutional open-access agreements, encouraging preprints and repository deposits, and advocating for statutory carve-outs during the comment process.

Some campuses may prioritize high-impact outputs for agency pre-approval requests while shifting lower-priority articles to no-fee or low-cost venues. Training for grant writers and principal investigators on allowable-cost documentation could become more common.

Timeline, Comment Process, and Potential Outcomes

The 45-day comment window closes in mid-July, after which OMB will review submissions before issuing a final rule. Observers expect vigorous engagement from the higher-education community, scientific societies, and publishing stakeholders.

If adopted largely as proposed, the changes would take effect for fiscal year 2027 awards. Institutions that begin planning now may position themselves to adapt more smoothly, regardless of the ultimate regulatory language.

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Looking Ahead for Research Dissemination in Higher Education

The proposed revisions underscore ongoing debates about the proper allocation of federal research dollars and the sustainability of current scholarly communication models. How universities, agencies, and publishers respond will shape the visibility and accessibility of American research for years to come.

Faculty, administrators, and aspiring academics will benefit from staying informed as the regulatory process unfolds and from contributing thoughtful input where opportunities arise.