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Settlement Reverses Trump-Era Cuts to Library Funding Agency; IMLS Restores Staff and Grants

Settlement Reverses Trump-Era Cuts to Library Funding Agency; IMLS Restores Staff and Grants
FILE - The Department of Justice seal is seen in Washington, Nov. 28, 2018. (AP Photo/Jose Luis Magana, File)(ASSOCIATED PRESS)

The American Library Association and AFSCME reached a settlement with the Justice Department to reverse several Trump-era actions against the Institute of Museum and Library Sciences. The agreement rescinds 2025 reductions in force, allows affected employees to return to work, and prohibits further RIFs aimed at implementing the March 14 executive order. Plaintiffs will dismiss their lawsuit without prejudice if the government complies with the settlement terms. IMLS funds thousands of grants and distributes more than $200 million annually to libraries and museums.

WASHINGTON — Plaintiffs who sued to block the Trump administration’s cost-cutting actions against the federal agency that funds and supports U.S. libraries announced Thursday that they have reached a settlement with the Justice Department that will reverse several of the administration’s measures.

Deal Preserves Grants And Reinstates Staff

The American Library Association and the American Federation of State, County and Municipal Employees — with legal help from the advocacy group Democracy Forward — said the agreement with the Justice Department's Civil Division will allow the Institute of Museum and Library Sciences (IMLS) to continue issuing grants and operating programs that benefit libraries and museums nationwide.

The settlement rescinds all reductions in force (RIFs) affecting IMLS staff in 2025 and authorizes employees who received termination notices or leave orders to return to work. It also bars the agency from issuing further RIFs intended to implement the March 14 executive order that had labeled IMLS and several other agencies as "unnecessary."

Actions That Prompted The Lawsuit

Following the executive order, many IMLS employees were placed on administrative leave and some received termination notices. The agency’s acting director at the time began canceling grants and contracts and dismissed members of the National Museum and Library Services Board — actions that plaintiffs said disrupted local services such as after-school programs, job-seeker support and resources for older adults.

"When the administration began shuttering IMLS last year, it set off a chain reaction. Libraries across the country started cutting hours, staff and services people rely on — after-school programs, support for job seekers and connection for older adults," said American Library Association president Sam Helmick.

Next Steps And Wider Context

Under the settlement terms, the plaintiffs will file a joint stipulation to dismiss the lawsuit without prejudice within seven days if the government complies. The Civil Division, which negotiated the deal, had no immediate comment; the White House referred questions to the Justice Department.

The announcement came days after a federal judge in Rhode Island approved the administration’s request to withdraw an appeal in a separate case brought by 21 state attorneys general.

About IMLS

IMLS is the lone federal agency charged with providing funding to the nation’s libraries. Created in 1996 by a Republican-led Congress, its mission is to "advance, support, and empower America’s museums, libraries, and related organizations through grantmaking, research, and policy development." The institute combined earlier government functions, including those of the National Commission on Libraries and Information Science and the Institute of Museum Services, and in recent years has distributed more than $200 million in grants annually.

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