Katherine Klosek, Director, Information Policy and Federal Relations, ARL
Contributions from the Canadian Association of Research Libraries (CARL) by Katherine McColgan, Manager, Administration and Programs, CARL
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The monthly Public Policy Briefing highlights developments in ARL’s public policy priorities, issues that are relevant to the research library community in the United States and Canada, and details on advocacy conducted by ARL and CARL. Please encourage your colleagues to sign up for the Public Policy Briefing.
If you have questions or suggestions, please email me at kklosek@arl.org.
This month, a circuit court upheld a prohibition on the US National Institutes of Health’s attempt to impose a 15 percent indirect cost reimbursement rate. Several federal appropriations bills include policy language requiring NIH and other agencies to apply the same negotiated indirect cost rate that was applied in FY 2024.
Copyright Week was January 20–23! Read my Copyright Week post, “How Congress Can Improve Accessibility and Digital Access.”
Congress reached an agreement that would fund the Institute of Museum and Library Services (IMLS) at $291.8 million—a slight overall decrease from the current funding level, though Grants to States and Museums for America saw an uptick.
In Canada, the House of Commons rose in mid-December and is not scheduled to return until January 26. Work of the committees is expected to ramp up at the end of the month.
Just before the break, Marc Miller stepped in to replace Steven Guilbeault as the minister of Canadian identity and culture. CARL staff will work to connect with Minister Miller’s office and ensure he is aware of CARL’s advocacy priorities.
Proposed amendments within the Canadian Budget Implementation Act (Bill C-15) would see the potential for postal rates to increase substantially for libraries and other services providers who mail materials to patrons.
The annual OLA Copyright Symposium convened November 19 & 27 and December 4 & 11. Session topics included accessibility, rights retention, and Indigenous data sovereignties.
Read on for more details!
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Federal Funding for Library Priorities
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OSTP Director Addresses America’s AI Action Plan in Hearing Before House Science Subcommittee
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This month, US Office of Science and Technology Policy (OSTP) Director Michael Kratsios testified about the administration’s AI Action Plan in a hearing of the US House Committee on Science, Space, and Technology Subcommittee on Research and Technology.
Kratsios encouraged Congress to fund the US Department of Energy’s Genesis Mission, which he described as “the largest federal scientific effort since the Apollo Program.” In response to a line of questioning by Rep. Zoe Lofgren (D-CA), Kratsios reiterated the administration's position that a lack of federal preemption of state AI regulation is a hurdle to innovation. Rep. Logfren entered into the hearing record a letter from 36 state attorneys general opposing a moratorium on state laws addressing artificial intelligence.
In response to questions about how the administration is prioritizing AI literacy and education, Kratsios repeatedly referred to an April 2025 executive order, which established the AI Education Task Force. Some committee members raised the administration’s funding cuts and workforce reductions for science agencies, including the National Institute of Standards and Technology (NIST). Kratsios responded that even in its attempts to “right size” the budget, the administration has been consistent in prioritizing federal funding for AI.
Read a transcript of the hearing by Tech Policy Press.
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Federal Funding for Library Priorities
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Circuit Court Upholds Prohibition on NIH Reimbursement Rate Cap
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The US Court of Appeals for the First Circuit affirmed in January a nationwide injunction barring the National Institutes of Health (NIH) from capping reimbursement of "indirect costs” associated with NIH-funded research at 15 percent.
In June 2025 ARL joined COGR, EDUCAUSE, the National Association of College and University Business Officers (NACUBO), and other higher education associations in an amicus brief asking the US Court of Appeals for the First Circuit to affirm the permanent injunction. As the brief explains, the cap on reimbursements unlawfully upended the decades-long policy that academic research institutions negotiate with federal agencies for indirect cost rates that account for each institution’s circumstances, and jeopardized cutting-edge research.
Following the District Court’s permanent injunction, the US government appealed the District Court’s decision to the US Court of Appeals for the First Circuit.
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Congress Advances FY 2026 Funding Bill with Indirect Cost and Open Access Policy Provisions
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Congress is advancing FY 2026 funding agreements for federal research agencies, with policy language that could have implications for research library priorities; six of the twelve appropriations bills that fund the federal government have been enacted to date.
The commerce, justice, and science (CJS) funding package—which has been passed by the House and Senate—provides $8.750 billion for the National Science Foundation (NSF), a slight decrease from FY 2025 funded levels and a significant departure from the administration’s request of $3.903 billion. The bill prevents NSF, NASA, the Department of Commerce, and the Department of Energy from changing reimbursement rates for indirect costs, directing those agencies to apply the same negotiated indirect cost rate that was applied in FY 2024.
A joint explanatory statement accompanying the CJS funding package includes language acknowledging “that there is room for improvement in the system used to identify and recover indirect cost rates under the Uniform Guidance, particularly with respect to the need for greater transparency into these costs. Various models have been suggested to achieve these improvements, including the Financial Accountability in Research (FAIR) model advanced by the Joint Associations Group on Indirect Costs (JAG), which the Committee believes merit further consideration.”
The report also suggests that the Office of Science and Technology Policy (OSTP) “may be in the process of repealing the August 25, 2022, Memorandum to Executive Departments and Agencies entitled, ‘Ensuring Free, Immediate, and Equitable Access to Federally Funded Research’.” The report directs OSTP to report to Congress on the status of this action within 30 days of the enactment of the bill. There is no indication from OSTP that work has begun to repeal the memo. Follow SPARC updates on this topic.
The Financial Services and General Government bill, which funds the Office of Management and Budget (OMB), was accompanied by policy language directing OMB “to not finalize or implement any policy, guidance, or rule, or publish a notice of proposed rulemaking, that would alter the manner in which negotiated indirect cost rates have been implemented and applied under the Uniform Grant Guidance, as that guidance was in effect during fiscal year 2024.”
A statement accompanying the Labor, Health and Human Services, Education, and Related Agencies (LHHS) bill includes language barring NIH from “alter[ing] the manner in which negotiated indirect cost rates have been implemented and applied under NIH regulations, as those regulations were in effect during the third quarter of fiscal year 2017.” The statement also directs agencies funded by the LHHS bill to engage in discussions on proposals to improve the system used to identify and recover indirect cost rate rates, including the FAIR model.
ARL is continuing to monitor the shifting landscape around indirect cost recovery, including possible rulemaking by OMB.
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Agreement on IMLS Funding Consistent with Current Funding Level
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Congress reached an agreement on the Labor, Health and Human Services, Education, and Related Agencies (LHHS) bill, which would fund the Institute of Museum and Library Services (IMLS) at $291.8 million—a slight overall decrease from the current funding level, though Grants to States and Museums for America saw an uptick.
The LHHS bill also appropriates $497.5 million for the National Library of Medicine (NLM), which is consistent with current funding levels.
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| IMLS Funding | FY 2024 Enacted |
FY 2026 Agreement |
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| Library Services and Technology Act (LSTA): | | | | Grants to States | $180,000,000 | $181,400,000 | | Native American Library Services | 5,763,000 | 5,763,000 | | National Leadership: Libraries | 15,287,000 | 15,287,000 | | Laura Bush 21st Century Librarian | 10,000,000 | 10,000,000 | | Museum Services Act (MSA): | | | | Museums for America | $27,330,000 | $28,730,000 | | Native American/Hawaiian Museum Services | 3,772,000 | 3,772,000 | | National Leadership: Museums | 10,348,000 | 9,348,000 | | 21st Century Museum Professional | 2,000,000 | 1,000,000 | | African American History and Culture Act: | | | | Museum Grants for African American History & Culture | $6,000,000 | $6,000,000 | | National Museum of the American Latino Act: | | | | Museum Grants for American Latino History & Culture | $6,000,000 | $6,000,000 | | Museum and Library Services Act (MLSA): | | | | Research, Analysis, and Data Collection | $5,650,000 | $5,500,000 | | Agency Wide: | | | | Program Administration | $22,650,000 | $19,000,000 |
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Proposed Amendments to Canadian Budget Implementation Act Would Raise Library Book Rate
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In the fall of 2025 the federal government of Canada released its Budget Implementation Act (Bill C-15). Proposed amendments within that bill will see the legislated reduced postal rates for libraries and other services providers who mail materials to patrons removed from the Canada Post Act. Referred to as the “library book rate,” this reduced shipping rate has subsidized ILL costs and made it possible to send materials to those who have visual impairments at no cost. The library community is very concerned about removing this security measure in the Post Act and is currently undertaking an advocacy campaign targeted at getting these proposed amendments removed from Bill C-15.
Read more:
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About the Association of Research Libraries
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The Association of Research Libraries (ARL) is a nonprofit membership organization of research libraries and archives in major public and private universities, federal government agencies, and large public institutions in Canada and the US. ARL champions research libraries and archives, develops visionary leaders, and shapes policy for the equitable advancement of knowledge.
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