WASHINGTON — Two major organizations successfully reached a settlement agreement with the Justice Department on Thursday, reversing budget cuts that threatened library funding nationwide through the Institute of Museum and Library Sciences.
The American Library Association and the American Federation of State, County and Municipal Employees announced their legal agreement will restore the IMLS’s ability to distribute grants and maintain programs supporting libraries and museums across the country.
Justice Department officials have not yet provided comment on the settlement, while White House representatives directed inquiries to the Justice Department’s Civil Division.
Democracy Forward led the legal challenge filed in May, seeking to prevent the administration from dismantling the IMLS following President Donald Trump’s March 14 executive order labeling the agency and others as “unnecessary.”
The cost-cutting initiative represented part of a wider government effort to reduce federal spending by eliminating staff positions, grant programs, and various services.
Following the executive order, agency employees were placed on administrative leave and received termination letters. The acting director proceeded to cancel existing grants and contracts while dismissing all National Museum and Library Services Board members.
“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,” stated American Library Association president Sam Helmick.
According to settlement terms, all 2025 staff reduction orders have been canceled, allowing affected employees to resume their positions. The IMLS has agreed not to implement additional workforce reductions related to the executive order’s objectives.
American Federation of State, County and Municipal Employees president Lee Saunders described the settlement as a win for communities nationwide that rely on library and museum services.
The organizations will formally dismiss their lawsuit within seven days, provided the government fulfills all agreement conditions.
This settlement follows a Rhode Island federal judge’s approval three days earlier of the administration’s request to withdraw its appeal in a separate case brought by 21 state attorneys general.
Established in 1996 under Republican congressional leadership, the IMLS serves as the sole federal agency dedicated to library funding. Its mission focuses on advancing and supporting America’s museums and libraries through grants, research, and policy initiatives.
The institute merged operations from earlier government entities, including the National Commission on Libraries and Information Science and the Institute of Museum Services.
Annual IMLS grant distribution reaches thousands of recipients nationwide, totaling over $200 million in recent years.
