A legal challenge to cost-cutting measures affecting the federal agency that funds libraries and museums in the United States has been settled, partially reversing earlier measures taken by the Trump administration.The plaintiffs, the American Library Association and the American Federation of State, County and Municipal Employees, said Thursday they had reached a settlement with the United States Department of Justice. The settlement allows the Institute of Museum and Library Services (IMLS) to continue making grants and operating programs that support libraries and museums.The White House referred questions to the Justice Department. The department’s civil division, which agreed to the settlement, had no immediate comment.
The lawsuit challenged the executive order.
The two organizations filed a lawsuit in May, led by Democracy Forward, seeking to prevent the administration from reducing the role of IMLS. The action followed an executive order signed on March 14. Donald Trumpwhich described IMLS and several other federal agencies as “unnecessary”.According to the Associated Press (AP), the moves were part of a broader effort to reduce federal spending by cutting staff, grants and programs.Following the order, IMLS staff were placed on administrative leave and many received termination notices. The agency’s acting director also canceled grants and contracts and removed members of the National Museum and Library Services Board.
Settlement reinstates staff, prevents further cuts
Under the settlement, all deficiencies issued in 2025 are canceled. Employees who have received notices have been given the option to return to work. The agreement also states that IMLS will not issue further reductions in force to implement the executive order.Lee Saunders, president of the American Federation of State, County and Municipal Employees, said the settlement is a victory for communities that rely on libraries and museums.In a statement to the AP, Sam Helmick, president of the American Library Association, said, “When the administration began closing IMLS last year, it set off a chain reaction. Libraries across the country began cutting hours, staff and services people rely on, after-school programs, support for job seekers and outreach for older adults.”
After compliance the case will be dismissed.
The plaintiffs said they would file a joint stipulation to dismiss the case without prejudice within seven days, provided the government abides by the terms of the agreement.The announcement comes days after a federal judge in Rhode Island granted the administration’s request to withdraw its appeal in a separate case brought by 21 state attorneys general.
Role of IMLS
IMLS is the only federal agency responsible for funding libraries in the United States. It was established in 1996 by the Republican-led Congress.The agency supports museums, libraries and related institutions through grants, research and policy initiatives. It distributes thousands of grants nationwide, totaling more than $200 million annually in recent years.IMLS was formed by merging former institutions, including the National Commission on Libraries and Information Science and the Institute of Museum Services.
