Proposed Federal Changes Could Force US Universities to Cover Journal Publication Costs Themselves

The Office of Management and Budget has issued a proposed revision to the Uniform Guidance governing federal financial assistance that would render many journal publication costs and subscriptions unallowable under federal grants. This development, detailed in a May 29, 2026, Federal Register notice, has prompted widespread discussion among university leaders, librarians, and researchers about how institutions will sustain scholarly output amid tightening federal rules.

Current Framework for Grant Costs in Higher Education

Under the existing Uniform Guidance in 2 CFR Part 200, institutions of higher education have long treated reasonable publication expenses, including article processing charges for open access journals, as allowable direct costs when tied to federally funded research. Subscriptions to academic periodicals have similarly supported indirect cost recovery through library components in negotiated rates. Agencies such as the National Institutes of Health and National Science Foundation have maintained policies allowing these expenses to fulfill public access requirements.

Key Provisions in the OMB Proposal

The draft rule introduces explicit restrictions. Proposed section 200.461 states that publication costs, encompassing page charges, article processing charges, and open access fees, are generally unallowable unless required by statute or approved in advance by the awarding agency on a case-by-case basis. A general mandate to make research results publicly available does not qualify as authorization for these costs. Section 200.454 would make subscriptions to business, professional, academic, and technical periodicals unallowable. These changes would apply to new awards after an anticipated October 1, 2026, effective date if finalized.

Impacts on University Research Budgets and Libraries

Research universities rely heavily on federal grants for both direct project support and overhead recovery. Removing publication costs from allowable categories could shift millions of dollars annually onto institutional operating budgets or departmental funds. Academic libraries, which already face pressure from rising journal prices, would see reduced ability to recover subscription expenses through indirect cost rates. Smaller institutions and those with thinner margins may face particular strain in maintaining access to essential literature for faculty and students.

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Effects on Open Access Mandates and Researcher Workflows

Federal agencies continue to require public access to funded research outputs. Without grant support for article processing charges, principal investigators may need to seek institutional subventions, delay publications, or explore alternative venues. Early-career researchers and those in fields with high article processing charges could encounter added barriers. Universities are examining how to reconcile these funding restrictions with existing compliance obligations under agency public access policies.

Perspectives from Stakeholders Across Higher Education

University administrators emphasize the need for clear guidance on transition periods and potential exceptions. Librarians highlight risks to collection development and the broader research ecosystem. Faculty members express concern about promotion and tenure implications if publication options narrow. Publishers and scholarly societies note that the changes arrive amid ongoing debates over sustainable business models for peer-reviewed communication. Commenters on the proposal have until July 13, 2026, to submit feedback through regulations.gov.

Potential Institutional Responses and Alternatives

Many campuses are convening working groups to model budget impacts and identify non-federal funding streams. Options under discussion include expanding institutional open access funds, negotiating read-and-publish agreements with publishers, prioritizing preprint servers, and advocating for statutory carve-outs in future appropriations. Some institutions may accelerate internal reviews of research output metrics to reduce reliance on traditional journal counts.

Broader Context Within Federal Research Policy

The cost allowability changes form part of larger revisions to the Uniform Guidance that also address political appointee review of awards, expanded termination authority, and restrictions on certain activities. Higher education associations are tracking how these elements interact with longstanding commitments to research integrity and international collaboration. The proposal reflects executive priorities around accountability and efficiency in federal spending.

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Future Outlook for Scholarly Publishing in US Higher Education

If implemented, the rules could accelerate experimentation with new dissemination models while challenging the current balance between grant funding and institutional support. Universities may need to strengthen partnerships with foundations and state governments to sustain publishing activity. Long-term success will depend on whether viable alternatives emerge that preserve rigorous peer review and broad dissemination without relying on federal grant dollars for core costs.

Institutions are encouraged to review the full proposed rule and participate in the comment process to ensure higher education perspectives inform the final guidance.