GovTechGuy writes "The federal government is on the verge of reaching an agreement with YouTube that would allow agencies to make official use of the popular video-sharing service. A coalition of federal agencies led by the General Service Administration's Office of Citizen Services has been negotiating with Google, YouTube's parent company, since summer 2008 on new terms that would allow agencies to establish their own channels on the site. Agencies have not been [allowed] to post videos to YouTube (although many already have) because under the current terms of service, people who post content are subject to their state's libel laws. Federal agencies must adhere to federal law. On Tuesday, government officials said the negotiations were 'very close' to being completed."