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WASHINGTON (AP) — A lawsuit against the Trump administration’s budget cuts impacting a key agency that funds libraries nationwide has been settled, plaintiffs announced Thursday. The agreement with the Justice Department will reverse some reductions previously enacted.
The American Library Association and the American Federation of State, County and Municipal Employees revealed that they’ve reached a settlement allowing the Institute of Museum and Library Services to resume its grant distributions and support programs for libraries and museums across the country.
When questioned, the White House redirected inquiries to the Justice Department. The Justice Department’s Civil Division, which was involved in the settlement, has yet to provide a statement.
Last May, the organizations filed a lawsuit, with legal backing from Democracy Forward, to prevent the administration from severely cutting the IMLS. This action followed a March 14 executive order by President Donald Trump that labeled the agency and others as “unnecessary.”
The proposed cuts were part of a wider initiative by the administration aimed at reducing federal spending by cutting down on staff, grants, and various programs.
Staff was subsequently placed on administrative leave with many receiving termination notices. The agency’s then acting director also began canceling grants and contracts and fired the members of the National Museum and Library Services Board.
“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 in a press statement.
The settlement said all reductions in force to the staff in 2025 have been rescinded and all employees who received them are authorized to return to work. IMLS will not issue any more RIFs in order “to effectuate” the purpose of the executive order, the settlement said.
Lee Saunders, president of the American Federation of State, County and Municipal Employees, called the settlement a victory for every community that depends on libraries and museums.
The plaintiffs will file a joint stipulation of dismissal of the case without prejudice in seven days if the government adheres to terms of the agreement.
The settlement announcement comes three days after a federal judge in Rhode Island approved an administration request to withdraw its appeal of a federal district court opinion in a separate lawsuit filed by 21 attorneys general.
IMLS is the only federal agency tasked with providing funding for the nation’s libraries. It was established in 1996 by a Republican-led Congress and has a mission to “advance, support, and empower America’s museums, libraries, and related organizations through grantmaking, research, and policy development.”
The institute combined the services of previous government agencies, including the National Commission on Libraries and Information Science and the Institute of Museum Services.
It distributes thousands of grants nationwide, totaling in recent years to more than $200 million annually.