New Standards Foundation Must Find $1.25M in Private Funding Annually to Boost NIST Research

The Expanding Partnerships for Innovation and Competitiveness Act is setting up a new, independent nonprofit called the Foundation for Standards and Metrology. Think of this Foundation as a private booster club for the National Institute of Standards and Technology (NIST)—the agency that sets the technical rules for everything from your phone’s charger to the accuracy of your gas pump.

This bill tasks the Secretary of Commerce with establishing this Foundation, whose main job is to help NIST advance measurement science, speed up the development of technical standards, and get federally funded research into the market faster. It’s designed to be nimble where the government is slow, supporting things like international standards work, funding research studies, and even upgrading NIST facilities. Crucially, the Foundation can offer direct support—like fellowships, grants, and travel funds—to NIST researchers and associates, bypassing typical federal bureaucracy.

The Private Sector Takes the Wheel

Here’s where it gets interesting: the Foundation is explicitly not part of the federal government. It’s a separate nonprofit that can receive, accept, and use money from any source—meaning private companies, universities, and wealthy individuals. While NIST can transfer up to $1.25 million annually for initial seed funding (starting in Fiscal Year 2026), the bill requires the Foundation to submit a plan to become financially self-sustaining within five years. After that, it’s all private money.

Governance is handled by an 11-member Board of Directors, drawn from academia, the private sector, and nonprofits. No employee of the Department of Commerce can be a voting member. This structure is intended to bring outside expertise and funding, but it also means that the direction of this critical NIST support will be largely determined by non-government stakeholders—and the private entities that fund it.

Power and Accountability

This Foundation is designated as the only entity responsible for carrying out specific support activities for NIST. This concentration of power outside of direct federal control is a big deal. For a small business owner, this could mean faster access to new industry standards that help them compete, but it also raises questions about influence. If a major corporation donates millions, will the Foundation prioritize standards that benefit that donor over broader public interest? The bill requires the Board to establish ethical standards and conflict-of-interest rules to address this, and limit how donors can restrict funds.

Accountability is baked in, thankfully. The Foundation must publish an annual report detailing its activities, finances, and, importantly, the source of all its support. A full list of donors must be made available to the Secretary and the Comptroller General (the government's top auditor). Furthermore, the Comptroller General is required to conduct a full performance review five years after the Foundation starts operating. This oversight is critical because while the bill states the U.S. government is not responsible for the Foundation’s debts, taxpayers are still on the hook for the initial funding and the potential consequences if the Foundation fails to meet its self-sustainability goal.