The American Library Association, together with the American Federation of State, County and Municipal Employees–the nation’s largest union of cultural workers– has reached a favorable settlement with the U.S. Department of Justice, thwarting the Trump administration’s plan to dismantle the Institute of Museum and Library Services (IMLS).
According to an April 9 press release from the American Library Association (ALA), the settlement ensures the agency will continue awarding grants, conducting research, and supporting the operation of libraries and museums. The agreement also requires that previously terminated grants be reinstated, staff reductions reversed, and that the administration refrain from further action against IMLS.
ALA President Sam Helmick said in a statement, “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 jobseekers and connection for older adults. This settlement protects life-changing library services for communities across the country. ALA will continue to defend every American’s freedom to read and learn.”
Established in 1996, the Institute of Museum and Library Services (IMLS) is the only federal agency that provides resources to museums and libraries across all 50 states and U.S. territories. Despite its nonpartisan status, IMLS became a prime target for defunding through executive action by the Donald Trump administration.
Litigation on its behalf was initiated by two of the nation’s most influential cultural bodies: the American Library Association (ALA), the largest library association in the world, and the American Federation of State, County and Municipal Employees (AFSCME), the nation’s largest union of cultural workers. The lawsuit was filed last year amid sweeping reductions in federal arts and culture agencies, which saw mass layoffs, rescinded grants, and leadership shakeups along ideological lines.
The proposed 2026 federal budget included plans to defund the Institute of Museum and Library Services (IMLS), allocating just $6 million for the year—a steep decline from its previous $313 million budget—effectively setting the agency on a path to sunset. IMLS accounts for only 0.005% of the overall federal budget and requires reauthorization by Congress every six years to remain active.
Numerous legal efforts were launched in 2025 to halt the agency’s shutdown, including a temporary restraining order issued by a federal judge and a lawsuit filed by 20 state attorneys general.
“AFSCME members fought tirelessly to protect this essential institution, which supports the vital services we provide to communities across the country,” said Lee Saunders, president of the organization, in a statement. “Thanks to these efforts, this funding is now protected in every state, ensuring our communities can continue to access these essential places of learning.”
